HUD $100 Downpayment Program in Pennsylvania
February 27, 2008
HUD is currently offering several incentives, including a $100 downpayment program, for bidders in select Pennsylvania counties. Here’s what to look for:
- $100 Down payment financing is available on most properties through FHA approved lenders.
- Sales allowances that can be used to pay closing costs, make repairs, or pay down the mortgage amount.
- Broker bonuses for owner-occupant sales.
In order to qualify for the $100 downpayment incentive, Pennsylvania bidders must be owner-occupants using FHA-insured financing. The incentive programs are available now through September 30, 2008.
See: How to Find HUD Homes for Sale
Ohio HUD Homes: Less Than a Cup of Coffee?
February 26, 2008
In a recent Chicago Sun-Times editorial, Jesse Jackson claims that Ohio HUD homes are drastically underpriced:
“Ohio is also the epicenter of the housing bust. Some 150,000 homes went into foreclosure last year. Across the country, one in 10 homes are “under water” — worth less than their mortgages. That ratio is much worse in Ohio. In Cleveland, there are so many foreclosures that HUD is selling homes for less than the cost of a cup of coffee. You can pay for your tall latte at Starbucks with a $5 bill and use the change to pick up a house from HUD. Responsible homeowners have lost the savings they built in their homes. Communities once more find their tax base decimated. This starts a vicious cycle of cuts in police and schools; vandals sack empty homes; and prices continue to plummet.”
It’s true that prices on Ohio HUD homes for sale are dropping, but don’t start searching for nickels in the couch quite yet. The Ohio HUD database is currently listing only one home at the $1,000 price point. However, there are seventeen Ohio HUD homes available for less than $5,000. At the $10,000 price point, you have dozens to choose from.
HUD Incentive Programs in Michigan
February 25, 2008
HUD is currently running several buyer incentive programs on HUD homes for sale in Michigan. Here are the new offers:
- $100 down payment financing is available on most properties through FHA approved lenders.
- Sales allowances that can be used to pay closing costs, make repairs, or pay down the mortgage amount.
The buyer incentives are available any time before September 30, 2008. In order to qualify for the $100 down payment, buyers must bid as owner-occupants and use FHA financing.
HUD Homes for Sale in Ohio: $100 Down Payments and Sales Allowances
February 18, 2008
The government is currently running a few incentives on HUD homes for sale in Ohio.
Bidders who purchase a HUD home during the incentive period can qualify for these discounts:
- $100 down payments on HUD Homes financed with FHA-insured financing.
- Sales allowances that can be used to pay closing costs, make repairs, or pay down the mortgage amount.
- Broker bonuses for owner-occupant sales.
Many times HUD incentives require that purchasers bid for the full listing price. Ask your HUD approved agent for details.
$100 Down Payment Incentive on HUD Homes for Sale in Colorado
February 16, 2008
If you’re an owner-occupant bidder in Colorado, you’re in luck. The government is now offering a $100 down payment incentive on HUD homes for sale in Colorado. In order to qualify for the low down payment deal, you need to make a bid for the full listing price and purchase the home with FHA-insured financing. Any HUD approved agent can help you secure the incentive deal - just ask.
Top 10 Foreclosure Cities in America
February 13, 2008
Which cities currently have the highest foreclosure rates? Forbes.com recently published a slideshow featuring the top 10 places where foreclosure is commonplace.
Here are a few cities that made the list:
Albany, NY (1,617 foreclosure filings, .25% of households)
Baltimore, Md (10,059 foreclosure filings, .73% of households)
New Haven, Conn (7,348 foreclosure filings, 1.09% of households)
Washington, D.C. (28,455 foreclosure filings, 1.16% of households)
Sacramento, CA (49,532 foreclosure filings, 3.1% of households)
Stockton, CA (22,184 foreclosure filings, 4.86% of households)
It’s amazing that there are places right now (nod to Stockton) where almost five in every 100 households are facing foreclosure. If you live near one of these top foreclosure cities, you may want to take a look at the HUD homes for sale in your area.
Breaking News: National 30-Day Foreclosure Freeze
February 12, 2008
In an accord with U.S. Treasury Secretary Henry Paulson, six of the largest national mortgage servicers have just agreed to offer 30-day foreclosure freezes to delinquent homeowners.
Secretary Paulson explained that the new plan, dubbed Project Lifeline, is designed to encourage non-paying borrowers to seek help:
“This is an important new initiative, targeted to reach not only subprime borrowers, but all 90-day delinquent homeowners nationwide with a step-by-step approach to find individual solutions to individual problems…
Project Lifeline is aimed at homeowners who face a real risk of losing their home, but have not yet addressed the problem. Perhaps they are hoping to find a way to get current on their mortgage payments, or perhaps they don’t think any solution is possible. For whatever reason they have not yet taken action; our hope is that today’s announcement will reach them, and they will reach out immediately for help – especially now that the foreclosure process is upon them.”
The lenders involved make up 50% of the mortgage market and include: the Bank of America, Wells Fargo, Washington Mutual, and Countrywide Financial Corporation.
Many delinquent mortgage holders (who are currently 90 days late or more) will soon receive letters from these lenders, explaining the proccess of qualifying for a 30-day foreclosure freeze. Homeowners will be given 10 days to respond.
Smaller lenders who were not included in the agreement are being encouraged to follow suit.
This could dramatically reduce the number of HUD homes for sale on the market, since these banks offer a huge number of FHA-insured mortgages - many of which are currently in default.
$100 Down Payment Bidding Incentive on Utah HUD Homes
February 12, 2008
The government is currently offering some pretty amazing incentives on HUD homes for sale in Utah. Here are the current deals offered:
- $100 Down Payments! Available to owner occupant homebuyers when purchasing a property at full price and using FHA-insured financing.
- $500 Broker Bonus! Selling brokers can earn an extra $500 for full-price offers on “uninsured” properties when the loan is closed using FHA’s 203(k) Program.
The down-side of these programs are that they require the purchaser too bid for 100% of the asking price. But, for a $100 down payment, it may be worth it.
(By the way, if you’re bidding on a Utah HUD home and are already bringing a sizable down payment to the table, you may want to be wary of selling brokers who insist that you make a full-price offer. Sure, they get the selling bonus. But, that means you may be stuck with a higher mortgage payment than necessary).
Indianapolis Considers Buying All HUD Foreclosures in 3 Zip Codes
February 10, 2008
Investors in some Indianapolis zip codes may soon find it difficult to purchase HUD homes for sale. A HUD manager is urging city officials to purchase all HUD homes on the market in three zip codes and then sell the properties to low- and moderate-income families. IndyStar.com reports:
“Charles Gardner, a senior HUD manager in Atlanta, where this program is operated, proposed that Indianapolis buy and resell all the houses repossessed by his agency in the three ZIP codes.
HUD takes possession of houses when the borrower defaults on mortgage loans insured by the Federal Housing Administration. Last year, FHA guaranteed about 20 percent of the mortgage loans foreclosed on in metro Indianapolis, Hall said.
Rufus “Bud” Myers, executive director of the Indianapolis Housing Agency, said the potential supply of private housing for Section 8 has been reduced because so many houses are off the market while they go through the foreclosure process. IHA oversees the Section 8 housing program for 27,000 people.
In a letter sent in November to Alphonso Jackson, HUD secretary under President Bush, Myers contends the federal agency is a prime supplier of houses to investors looking for properties to flip. Myers asked that HUD stop selling houses it has taken over in the 46201, 46203 and 46218 ZIP codes.
HUD typically repossesses 80 houses a month in the three ZIP codes. It has about 45 houses in those ZIP codes for sale by its contractor, Hall said.”
Selling HUD homes to high-bidding investors shouldn’t be considered a bad thing - most investors fix up these properties before selling them, improving value of the home as well as the local the neighborhood. If you’re considering purchasing a HUD home in Indianapolis, better bid quickly. You may not have the chance if this proposal is accepted.
$5000 HUD Homes in Detroit
February 8, 2008
Want to own a million dollar home for $100,000? How about a $300,000 property for five bucks? Check out Detroit. After the auto manufacturing industry took its business overseas, home prices have taken a nose dive.
While thousands of laid-off workers are fleeing the city, a few brave investors have decided to start buying up property. Much of the city is in shambles: streets are neglected, crime is rampant, and homes are vacant and deteriorating. However, some risk-takers speculate that the city will see a rebirth in coming years.
Learn more about extremely low-priced Detroit foreclosures in the new article - Detroit’s $5,000 HUD Homes: Killer Investment or Money Pit?