HUD to Extend Owner-Occupant Bid Period
March 13, 2008
In a Washington Senate hearing earlier today, HUD Secretary Alphonso Jackson said that the HUD owner-occupant bid period would be extended past its current 15-day allotment. The announcement was likely in response to accusations from Senator Charles Shumer, who claims that current HUD policies put foreclosure homes into the hands of slumlords.
New Yorks’ Daily Gazette reports:
“Area real estate investors say they rarely pick up HUD properties immediately after they are put to auction, because they tend to be overpriced. HUD says there is a cost associated will homes sitting on the market for longer periods. It costs HUD an average of $26 to hold a property each day. Last year it sold 24,000 properties.”
The extension remark was made amidst accusations that HUD is being improperly handled. It is not clear when the extensions will begin or how much longer owner-occupants will be given.
See Also: How to Find HUD Homes for Sale
Low Ball Offers on HUD Foreclosure Properties
March 12, 2008
It is possible to submit a low ball bid on a HUD foreclosure property. In fact, if there are no other bidders HUD is very likely to accept the low ball bid assuming it is within 85-88% of the original listing price. This low ball strategy works best for owner-occupant bidders submitting offers on less popular HUD foreclosure homes.
To learn more about the HUD bidding proccess see: HUD Foreclosure Guide
To learn more ways to save on HUD homes see: Secrets of Buying HUD Foreclosures
How HUD Foreclosure Bids are Placed
March 11, 2008
Placing a HUD foreclosure bid is a relatively simple process. Once you’ve chosen the foreclosure home you wish to purchase, let your realtor know the amount you wish to bid. He can instantly enter the bid into HUD’s online auction system.
Before bidding on any property, you must: fill out a simple form, give your real estate agent an earnest money deposit in the form of a certified check or money order ( generally between $500 and $1000) and submit a lender pre-approval or pre-qualification letter to your agent. If your bid is accepted, the agent will submit these materials to the appropriate HUD office.
See Also: How to Qualify for Bidding on HUD Repos
HUD Announces New Limits for FHA Mortgages
March 10, 2008
HUD recently announced new limits for FHA-insured mortgages. Many owner-occupant bidders on HUD foreclosure homes choose FHA financing due to low downpayment options and flexibility. The FHA 2039(k) loan, for example, gives borrowers the opportunity to take out money for home repairs as a part of the first mortgage.
Now, the new limits give borrowers the opportunity to purchase more expensive properties using FHA financing. In some areas (such as Los Angeles and New York) the limits are as high as $729,750.
Check out HUD’s database of new FHA mortgage limits here: FHA Mortgage Limit Website.
See Also: Guide to Bidding on HUD Foreclosure Homes
How to Become a HUD Approved Realtor
March 6, 2008
Becoming a HUD approved realtor isn’t difficult. In fact, some realtors complete HUD training just so they can save on the commission costs when buying HUD homes (it can be up to a 5% savings to bid on the home yourself). If you’re thinking of becoming a HUD approved realtor, here’s what you need to do:
1. Be a licensed real estate agent in any state.
2. Make sure your brokerage is HUD certified. If they are not, they can become certified by sending in a simple form to the necessary offices.
3. Complete any required training through your brokerage. Brokerages have different requirements for their agents. You may just need to be told some basic HUD information or you may be asked to watch a short informational video.
Once you’ve completed these steps, you’ll be given access to HUD properties and have the ability to bid on HUD auctions. Becoming a HUD approved real estate agent is that simple.
See Also: What You Need to Know About HUD Approved Realtors
$100 Down Payment Incentive on Wyoming HUD Homes
March 5, 2008
The government is currently running a $100 down payment incentive on HUD homes for sale in Wyoming. In order to qualify you must bid as an owner-occupant, pay the full starting bid price, and use FHA-insured financing. When putting together your bid, make sure $100 is entered as the down payment amount. Note that if you bid above the appraised value of the property, you can still have a $100 down payment but you will be required to pay the difference between the appraised value and your bid amount at closing.
Who is Michaelson, Connor, & Boul?
March 4, 2008
Michaelson, Connor, & Boul, Inc. is a real estate asset management company contracted by the government to sell HUD homes in the following states:
- Arizona
- Colorado
- Michigan
- Montana
- Nevada
- Ohio
- Utah
- Wyoming
Michaelson, Connor, & Boul is the only company that can list HUD homes for sale in these states. However, as a bidder, you may bring your own buyer’s agent into a HUD transaction. You can view the Michaelson, Connor, & Boul database of HUD foreclosure properties on their website: Michaelson, Connor, and Boul.
If you’re considering purchasing a HUD property through Michaelson, Connor, & Boul, these resources can help: HUD Foreclosure Buying Guide, Working with HUD Approved Realtors.
Financing HUD Property Repairs
March 3, 2008
For a long time, the FHA 203(k) loan was one of the only ways to have a borrower could get money for HUD home repairs, without taking out an additional loan. The FHA 203(k) loan will lend the estimated value of the property post-repair. For example, if a property’s current value is $70,000, but it could be worth $100,000 if certain repairs are made, the borrower can get a loan for up to $100,000.
Now, a growing number of private lenders are offering tempting alternatives. Consider the Wells Fargo Home Asset Management Account. This loan combines a first mortgage with a home equity line of credit. The borrower is able to draw upon his equity in the form of a HELOC, without making multiple applications. As the equity grows, so does the HELOC limit. This makes it especially easy for a borrower to make repairs on his HUD home at a low interest rate.
Keep checking back, we’ll soon have a new section on financing HUD foreclosure homes.
See Also: Where to Find HUD Homes for Sale