HUD Postpones NY Auction
March 26, 2008
The drama in Syracuse is coming to a close, as HUD has agreed to postpone foreclosure auctions on nine properties. The mayor, who was later supported in a letter from Hillary Clinton, had been urging HUD to allow the local government to choose a qualified landlord. The AP reports:
“In a rare move, federal housing officials are giving this city another three weeks to find a buyer for nine low-income apartment buildings.
The U.S. Department of Housing and Urban Development agreed to postpone Wednesday’s scheduled auction for 21 days.”
The local government plans to seek out a buyer who has experience managing income properties and will not let the apartments deteriorate any further.
This is definately a landmark decision for HUD. If it sets a precedent, it may result in more local control and a significantly smaller auction inventory available to investors.
See Also: Secrets of Buying HUD Foreclosures
HUD Considers Selling Multiple Homes in Single Auction
March 25, 2008
A recent Wall Street Journal article says that HUD is considering allowing investors to bid on groups of foreclosed homes. Here’s a blurb:
“Another big seller is the Department of Housing and Urban Development, or HUD, which operates the Federal Housing Administration. The FHA insures banks and investors against losses on mortgages, and ends up owning foreclosed homes. The average time it takes to sell has grown to 196 days from 175 a year earlier, says Laurie Maggiano, a HUD official.
About 30% of HUD’s homes are in Ohio and Michigan. In those states, HUD late last year began offering a $2,500 rebate to buyers. HUD also has programs that allow buyers to make down payments of as little as $100.
HUD also has programs under which it sells homes at deep discounts, and sometimes for as little as $1, to local nonprofit developers who provide housing for low-income people. Ms. Maggiano says HUD is looking at ways of letting investors bid for large groups of homes.”
No further information about this plan is available and there is no clarification whether the group bidding would be available only to nonprofits or whether it would be open to private investors. We’ll be watching this story carefully and will post any new information as it becomes available.
See Also: List of HUD Foreclosure Homes for Sale
How Much Are HUD Foreclosures Discounted?
March 24, 2008
HUD initially lists foreclosure homes at what they consider a fair market price. According to the Texas Star-Telegram, HUD listings actually start at about 15% below the current value:
“The typical starting price for a HUD-owned home is 15 percent below market value. Only people who are planning to live in the home can bid on it for the first 10 days.”
It is possible to get an even larger discount by making a low-ball bid, using a budget agent, or taking advantage of a HUD incentive. See: Secrets of HUD Foreclosures.
Clinton Backs Driscoll’s Request to End HUD Auction
March 21, 2008
As previously reported, Syracuse Mayor Matthew Driscoll is asking HUD to stop foreclosure auctions on seven properties in his area. Now, Senator Clinton has sent a letter of support, urging HUD to comply with the mayor’s request. Central New York News reports:
“Clinton wrote a letter to HUD Secretary Alphonso Jackson, asking that he consider Driscoll’s request.
“I am hopeful that HUD will work with Mayor Driscoll and make the approval of this sale contingent upon the new owners’ commitment to long term affordability. I urge you to take the necessary steps to ensure that this housing complex provides the safe, decent, and affordable home every working family in America needs and deserves,” the senator wrote.”
If HUD does decide to end the auction, the local government hopes to assist in the selection of the new owner. A HUD representative says that they are currently considering the request and will decide prior to the March 26th auction date.
See Also: Where to Find HUD Homes for Sale
$100 Down Payments on Montana HUD Foreclosures
March 20, 2008
HUD is currently running a $100 down payment buyer’s incentive for HUD foreclosure homes in Montana. Here’s the small-print from the HUD website:
$100 Down Payments! Available to owner occupant homebuyers when purchasing a property at full price and using FHA-insured financing.
If you want to take advantage of the Montana incentive, make sure that you meet the qualifications before bidding. You must be an owner-occupant, use FHA financing, and bid at the full price.
See also: HUD Foreclosure Secrets
How to Qualify to Purchase HUD Repos
March 19, 2008
In order to buy HUD repos, you need to meet certain qualifications. Preparing in advance can help you be ready when your “dream house” goes up for auction. Here’s what the government requires you to provide before bidding on HUD repos: HUD Bidding Qualifications.
Syracuse Mayor Asks HUD to Cancel Foreclosure Auctions
March 18, 2008
Matthew Driscoll, a New York mayor, is asking HUD to cancel auctions on seven rental properties in Syracuse. Empire State News reports:
“In a letter to HUD officials, Mayor Driscoll asked that the courthouse auction of the seven former Longley Jones properties be cancelled in favor of an RFP process for the properties. The Mayor believes an RFP process would allow more local input and careful selection of the most qualified management for the rental properties at a time when speculators have been focusing on the Syracuse property market.
“Taking the highest bid in a hastily-called auction won’t guarantee that we get new ownership that is committed to managing quality rental property for the residents of Syracuse,” said Mayor Driscoll.”
If the request is granted, it may open the door for other communities to stop HUD foreclosure auctions on local properties. This may reduce the number of absentee landlords. However, it may also cost HUD a significant amount of extra time and money.
The auction in question is currently scheduled for March 26th.
See Also: The Step-by-Step Guide to Buying HUD Foreclosure Homes
Congress Considering $15,000 Rebate Checks for Home Buyers
March 16, 2008
If you’re excited about this year’s rebate checks, you’re going to love this. Congress is currently considering a $15,000 rebate to every new home buyer. The idea, proposed by Sen. Johnny Isakson, is designed to stem the tide of foreclosures and promote a healthy real estate market. WSOCTV in Atlanta reports:
“Congressional budget analysts project the program would cost $14 billion over the next few years. But Isakson said the rebate checks are well worth the hefty price tag. “If we can convince buyers to come back to the marketplace and buy these houses, then the houses aren’t vacant. It’s replaced by an owner-occupant, who is there making payments on a loan and helping all of the other houses around.”Senate Republican leaders have signed on to the rebate check idea. But they have to corral support from Democrats.”
A bill has already been developed that will award a $15,000 tax credit to people purchasing foreclosure properties. The Security Against Foreclosures and Education (SAFE) Act was introduced by Senator Kit Bond earlier this month. Here’s what it promises:
“Tax Credits of $15,000 for Purchase of Homes in Foreclosure - $15,000 tax credit for the purchase of a home in or approaching foreclosure. The home purchase must occur within one year.”
A $15,000 rebate would definately make it easier for many to afford a home. In the coming months, we will certainly find out whether or not these bills have enough popularity with Congress.
See Also: HUD Foreclosure Guide
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