Make A Fortune From Real Estate Foreclosures.
Our apartment complex has a few trees but there are apartments that are in direct sun from early afternoon on. Trees are great for our environment, beautiful to see, great for birds, and great for people. Why don’t we encourage government officials to put more trees on government owned land and property of "Hud" new homes? Why aren’t more trees planted?
I am a 22 year old mother of a 2 year old living in California. currently living with my mother. There is no room for us, so I have to figure something out fast. I heard there’s a government programs that helps low income, single moms out when buying their first house. I also heard right now it is a buyers market. I’m looking for a house for no higher than 5,000
Any advice??
I here with the new stimulus plan signed by Pres. Obama It will pay my deposit, pay my rent and utilities and then I can get food stamps to buy chips and dip while getting my baby daddy to pay for my tv to watch my shows. Who needs to work under this new Socialist Government everyone wants. True or Not?
Our offer was accepted on a HUD home May 7th. We are STILL waiting on a closing date almost 2 months later. They have had all of our info for weeks now, just waiting on the government, per our realtor. What is the deal??? Why is it taking so long? I know it’s the gov’t, but GEEZ! Anybody else going/have gone through this same thing?
My husband and I are very interested in purchasing a HUD home. We have found one that fits our needs and wants and has a solid structure but estheticly needs some work. Since this would be our first home, we were wondering if a first time homeowners state or government grant could be used for a HUD home. It isn’t that we can’t afford the home or any repairs but if we could get a grant we could get alot of the work done sooner by putting the money we save into that rather than waiting and spreading it out over time.
If so, how would we go about getting one? If not, are there any other programs that we could utilize?
Thank you!
I was told that, people can actually can get assistance in housing for government Hud homes. The mortgage is based on your monthly income. Does anyone know what you have to have to be eligible?? Thanks in Advance.
What is a HUD, the perks and negatives of owning one? Links if found.
HUD homes offer many buyers the chance to purchase their home with built in equity, and allows investors some fantastic deals, as well. When the foreclosure rate is particularly high, as it is in 2007, HUD’s inventory swells, and there are deals to be made.
HUD deals are very different from traditional purchases, however, so make sure and follow sound advice before purchasing your first HUD home. Follow these tips, and you will be on your way.
1) All HUD Homes Aren’t Great Deals
Many buyers mistakenly assume that, if the US Department of HUD is selling, it must be a great deal. This couldn’t be further from the truth! Many Realtors relentlessly market HUD homes to drum up business, and this can create a glut of HUD buyers. When the HUD inventory is particularly low, oftentimes buyers will bid the property up to, or above the fair market value. Look at every HUD deal on its own merit, and make your decision based on that.
2) Understand the Bidding Process
HUD purchases are very different than conventional deals because they follow a ‘blind’ bidding process. The bidding date is released by HUD, and each buyer submits their best offer - without the knowledge of any other bids. As long as HUD finds the highest offer acceptable, that offer is accepted. HUD retains the right to refuse all offers.
3) Know the Difference Between ‘Owner-Occupant’ & ‘Investor’
One of HUD’s goals is to increase the number of US citizens who own homes. Because of this, they give preferential treatment to owner-occupants over investors. Owner-occupants have the first 10 days to bid on any home before it is released to investors. A buyer may bid as an owner-occupant once every two years. Make sure and bid honestly - otherwise is illegal, and can result in hefty fines.
4) Anticipate Repairs
You are allowed the opportunity a third party inspection before closing, but buyers cannot negotiate repairs based on the results. Backing out of HUD deals & retaining your earnest money is trickier than conventional purchases, too, so you may run the risk of losing your earnest money. Make sure and go through the home thoroughly before bidding on it.
5) Continuously Monitor the Inventory
As foreclosure rates rise and fall, so does HUD’s inventory. The laws of supply & demand definitely apply here - when the inventory is high, your chances of getting a great deal are higher than when they are low. Follow the asking price & sales price of HUD homes - if they are selling far over asking, it might not be the time to buy.
6) Make Sure Your Realtor & Lender Know the Process
After your bid is accepted, the paperwork begins! In Texas, HUD requires that you submit original signed (in blue ink) paperwork to the HUD agent’s office within 48 hours of the bid’s acceptance. If the paperwork is incorrect, you are allowed one revision - which must be received within 48 hours. They are just as strict with a lender’s closing documents - so make sure both your Realtor & lender are very familiar with the HUD process. Oftentimes, the HUD agent’s office will be located in a different city - and often, the escrow agent will be located in yet another city - this can put a very interesting twist on the process, and time constraints.
7) Act Quickly & Decisively
Because HUD places very strict time constraints on bidding, and due to the bidding process, you must act quickly & decisively. You will typically have 1-2 weeks from the date HUD places the property on the market until the bidding period begins - and more often than not, the property will be purchased on the first day of bidding. Make sure & exercise your due diligence, and make your decision quickly - you often won’t get a second chance.
HUD homes can be fantastic opportunities for a buyer or investor to get a great deal on a property. However, because the purchase process is quite different, make sure & do your research before attempting to find your first buy. Follow these tips, & you will be on your way to a successful transaction!
Disclaimer: The information above is based on Eric’s experiences with HUD in Texas from 2004-2007. The process continually changes, so make sure & get the most up-to-date information for your area before bidding.
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Author: Eric Bramlett
Eric Bramlett currently manages his Austin Real Estate Guide, his Austin Texas Real Estate company’s website, & his Downtown Austin Lofts Guide.
Article Source: http://EzineArticles.com/?expert=Eric_Bramlett
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Buying HUD (Department of Housing and Urban Development) homes isn’t necessarily a way to get rich quick. These homes are supposed to be sold at market value, after all, which would seemingly make the great deals you hear about a myth. However, there are some profit opportunities here.
One of the reasons you still find good deals on HUD homes - even though they are supposed to sell at market value - is that they are sold “as is.” These are houses that have been foreclosed on and repossessed, so the previous owner may not have had the means nor the motivation to properly care for the home. They often have enough problems to scare away most home buyers.
What does this mean? It means that due to the condition, the market value may be low compared to properly-maintained homes. This can mean an opportunity for an investor who is willing to fix a few things. For example, to the general public, a “problem house” can be worth $40,000 less than surrounding homes, while it may take only $10,000 make it look good again.
Buying HUD Homes
What is a HUD home? It is a house that has a HUD-insured mortgage loan on it. When the owner doesn’t make the payments, HUD pays the lender what is owed, and then takes ownership of the home. They try sell it quickly, and at market value. Virtually anyone who can pay cash or get a loan is eligible to buy these houses. (HUD employees and relatives of HUD employees are eligible, but must receive written approval from the Director of HUD’s Office of Single Family Asset Management in order to purchase a HUD-owned single family property.)
HUD homes are found in all sorts of neighborhoods, although most are meant to be affordable to low-income and moderate-income families. These are homes that generally sell for the same as surrounding homes (except when they need work). To find HUD homes in the price range you want, then, you simply look for neighborhoods with homes in that price range.
If A HUD house need fixing up the asking price will reflect that. HUD may offer special incentives such as an allowance to upgrade the property, a moving expense allowance, or a bonus for closing the sale early. The houses are sold “as is,” but HUD will allow you to get professional inspections prior to making an offer. The cost of these will be yours, however, whether or not you make an offer or buy the home.
On most sales, you can request that HUD pays all or a portion of your financing and closing costs. Essentially you just make an offer as you would on any property, except that HUD homes are typically sold in an “Offer Period,” at the end of which all offers are opened and the highest reasonable bid is accepted. If not sold in the initial Offer Period, you can submit a bid any day of the week, including weekends and holidays, until the home is sold. If your bid is accepted, your real estate agent will usually be notified within 48 hours.
HUD doesn’t loan on these homes, although they do offer mortgage insurance programs that can help you get a loan. Contact a HUD approved lender for more information.
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Investing In HUD Homes
HUD gives priority to owner-occupants purchasers. However, if there are no acceptable bids during the priority period, unsold properties are then available to all buyers, including investors. Your real estate agent should have the necessary details.
There are a couple ways to find out what HUD homes are available in your area. You can visit the HUD web site online and see the listings there. A better way is to find a participating real estate agent. He or she will know what is for sale, but also may know what HUD homes will soon be for sale. In any case, your real estate agent must submit your bid for you - HUD generally doesn’t accept offers directly from buyers.
When you make an offer, your real estate agent should help you with any paperwork. The settlement date (if your offer is accepted), will normally be within 30-60 days. You need to arrange financing and close the sale within this time, or forfeit your earnest money deposit (or you may be able to pay for an extension of your sales contract). The selling agent’s commission will be paid by HUD but only if you make this a condition of your offer.
Of course, when buying HUD homes, you have to analyze them like any other investment. If it will be a rental, you have to do the math to see if you’ll have positive cash flow. If you plan to fix it up and sell it, be sure there is a profit after all expected and some unexpected costs. Just because it is a HUD home doesn’t men it’s a great deal.
Author: Steven Gillman
Copyright Steve Gillman. To see a photo of the house we bought for $17,500, get a free ebook on How To Buy Cheap Homes, and more, visit: http://www.HousesUnderFiftyThousand.com
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If you are looking for HUD Homes outside of Houston, head here, enter your criteria and you will get to see all the matching homes currently available. Or visit the easy to navigate site with weekly updated listings for Houston HUD.
Buy A Government HUD Home For Your Family
If you wish to have a chance to own a house that’s priced lower than the actual market value, you can consider government HUD homes. HUD homes become government properties once the homeowners fail to pay their mortgage loan.
It’s HUD Day… Can I really buy a government home for $1 ?
It’s Friday morning….this is HUD day. HUD day? yup…every Friday morning you can log onto the local HUD representative’s web site and see all the properties our friends in the government have released for bid.
You will be able to find actual addresses of properties that are for sale by HUD. This is another free resource of thousands of HUD homes listings that have been foreclosed and are for sale by the U.S. government.
How to purchase a HUD home. HUD’s FHA Loans, Home improvement, Refinancing Housing Counseling. Ask about programs for senior citizen housing options. Are you eligible for a refund or tax credit?
3 Things to know about foreclosure homes for sale
The properties were originally purchased with FHA financing, and the homes were foreclosed on by the government. In Colorado, and in Colorado Springs, the majority of HUD properties are listed in the local Multiple Listing Service.
How To Buy Hud Homes Foreclosures(Government Owned Homes)
One of the best areas to find excellent buys is government owned real estate better know as Hud homes (Hud Homes Foreclosures as referred to by some). Foreclosures result when person who has a government insured mortgage can t afford to [...]
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Find out what is really involved in buying a foreclosure in today’s real estate market.
There is more involved than what meets the eye when considering the purchase of a foreclosure.
Once the realm of only seasoned real estate investors, the interest in purchasing foreclosed properties has fanned out to a growing number of ordinary home buyers. As the sub-prime lending fiasco continues to push homes into foreclosure and news stories appear everywhere about the record number of them hitting the market, many prospective home buyers are eyeing these properties as a way to get a lot of house for little money.
There seems to be a big misunderstanding by the public, however, about the value of homes that have been foreclosed. People tend to think that a foreclosed home presents a bargain, especially those who are looking for real estate investment property. They think that they can buy a foreclosure cheap, do a little fixing up, and sell it for a hefty profit or rent it out or even keep it for their own home, expecting to reap instant equity. Well, it doesn’t work out that way very often.
Out here in the trenches of real estate, I have been seeing an increase in foreclosed homes dumped on the market and the number of people looking for such homes who are expecting to purchase one for pennies on the dollar. I have home buyer clients who specifically want to evaluate only foreclosures or HUD homes, those offered by the government, usually by a bidding process, because they want a house that they can buy cheaply and work on it while living in it. As it turns out, most end up buying a conventional home once I show them a couple foreclosures and they begin to understand what they are up against.
Banks are not stupid. They know the value of real property and are not about to give it away. It’s an asset to them, not a liability. When they have to sell a home that they have repossessed, they offer it at market value, not necessarily for what is owed on the house. The first thing they do is send a certified real estate appraiser to the property to determine a fair market price based on comparable homes sold in the area and any defects that may be present in the home. Whatever figure the appraiser comes up with is what the house will be priced at. And it isn’t cheap.
It is true that many foreclosures are priced lower than seemingly comparable homes in a given area, but they are almost always in very poor condition, sometimes requiring extensive repairs. And this is where the danger comes in. Foreclosed properties are sold “as is”, meaning that when you buy the house, you have to take it in it’s present condition, the way you see it. You can have a home inspection, but you can’t ask the bank to make any repairs to defects found or credit any money back for such repairs. Once you have a contract, you can’t get out of it because you discovered a major defect and the bank refuses to correct it.
If you do your homework, however, and are smart about the whole thing, there are bargains to be found from time to time. Since you never know what a property’s true condition is by a cursory inspection, it makes sense to hire a home inspector before you submit a purchase offer. That way you will know what repairs need to be made and you can then find out the cost to make repairs and easily determine if the asking price of the house is worth the repair expense. A lot depends upon if you are going to live in the house yourself or if you are going to flip it or rent it. A foreclosure is much more risky if it is purchased for investment purposes than to live in.
The more thoroughly the house is inspected and the neighborhood and market researched, the easier it is to make a decision on whether a particular foreclosed home is right for you. Remember, when a house has been vacant for a long time without regular maintenance, which is often the case, even a home inspector can miss damage that is not apparent, but may be lurking behind walls and floors. Leaking water, vermin activity, and rot can occur in areas not visible to even the most thorough inspection without tearing out walls. These latent defects can manifest themselves at anytime and cause extensive damage. Consider also that many foreclosed homes were neglected by the previous owners, adding to the possibility of unforeseen problems. I see this out here in the field all the time.
If you are determined to buy a foreclosed or HUD home, do your homework. Work with a competent real estate agent and know the real estate market, the condition of the property, and the cost to make repairs. No matter what your objectives for buying a foreclosure are, get the facts. That bargain property could turn into your worst nightmare. The old adage of “Buyer Beware” certainly holds true when it comes to buying foreclosed property. I could tell you horror stories. Stay tuned. I may relate a few in future articles here. You can get some helpful information on the subject for free at one of my favorite real estate websites, http://www.VirginiaRealEstateNetwork.com
There are going to be more foreclosed homes coming on the market over ensuing months and there will be some excellent pickings if you know how to spot and properly evaluate them. Move fast when you do find one. You’re not the only one eying that property.
About the author:
Bernie Rosellen is a Virginia licensed Realtor. He works with both home buyers and home sellers and specializes in the Richmond, VA and surrounding areas. Besides actively practicing real estate, Bernie writes real estate articles as “Your Agent In The Field” from the perspective of being out in the neighborhoods and in the trenches of real estate. You can find out more about him and the real estate market in central Virginia at his website http://www.TheRosellenTeam.com
| By Bernie Rosellen Published: 9/8/2007 |
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Affiliate Disclosure: It is advisable to assume that any mention of a product or service on this website is made because there exist, unless otherwise stated, a material connection between the product or service owners and this website and should you make a purchase of a product or service described here the owner of this website may be compensated. To learn more, please click here.
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