anyone buy off homepath?
Has anyone on here ever bid or purchased a homepath.com home? I am seeing some really low asking prices and was wondering if that would be the sale price of if they try to create a bidding war?
Saw one today that asking was $150k but last sale price back in 2006 was $269k. Pictures of the house look great and its easily worth $250k
Do they favor certain buyers like all cash deals over an owner occupant over someone who wants to hold and rent?
thanks
I buy off homepath all the time. Have you walked the house or are you going off pictures? It's sale price in 2010 is irrelevant, what are the comps today?
Yes they favor owner occupied.
Owner occupant have first choice. You should visit the house as there are many surprises. You can get some very good deals, you need to keep bidding and you don't have to increase your bid. Review some of the podcasts and some material from the learn section. Some buyers only use homepath due to their success with it.
I buy from them, in the area I invest in it is one of the best places to find deals. They aren't playing games, they want to get the properties off their books. There could be multiple offers if it is a great deal, in which case you may get a notice to make your final and best offer. These properties have been foreclosed on so you don't know what kind of damage there might be until you see it, the whole foundation could be a wreck. The "First look" is a period where only owner occupants can make offers.
I was interested in homepath bc it was saying something about only having to put down 10% I thought.
So whos to say that I tell homepath that I wish for it to be my primary residence but I really am not? Do you sign a contract saying you cannot sell within a year or something? How are they keeping people from doing that?
I haven't checked out the property but it is a "first look" like you talked about Brant
Thanks
I'm not sure what the punishment is or how they go about checking on people being owner occupiers but I would wait it out and hope an owner occupier doesn't grab it.
If you get prequalified with a Homepath approved lender the low down payment is very attractive. There are many lenders who do it. If the home is in bad enough shape that it needs a renovation loan, there are much fewer lenders to choose from.
You can look into FHA loans as well. Down payment as low as 3.5%, but you have to be an owner occupier for that program as well.
Some investors buy a new owner occupied home every year and move just to take advantage of these programs.
Originally posted by @John Nisewonger:
I was interested in homepath bc it was saying something about only having to put down 10% I thought.
So whos to say that I tell homepath that I wish for it to be my primary residence but I really am not? Do you sign a contract saying you cannot sell within a year or something? How are they keeping people from doing that?
I haven't checked out the property but it is a "first look" like you talked about Brant
Thanks
Besides mortgage fraud, a 10K fine, and potentially a year in jail... Feel free. And if you think the investors that are eyeing that property aren't paying attention to see if you rent or move in, you're wrong.
Don't be a dirt bag, plenty of deals out there and do it the right way.
Originally posted by @John Nisewonger:Do you sign a contract saying you cannot sell within a year or something?
Thanks
In many cases they have a deed restriction in their REO addendum preventing you from selling. Usually what I have seen is no resale of over 120% of the value you paid within 90 days to six months.
Joe
Just because I ask how something works doesnt mean I am going out and doing it.. I like to see how things work and the legalities of a deal. I make a fie living doing what I do the right way plus I can sleep at night. Please dont assume, you know what they say?
To Sam
Yes I do think I recall an addendum from my last rental purchase now that I think back on it. I want to say it was for a 6 month if not longer.
assume? You asked about committing fraud, there's no assumption needed.
I asked what keeps people from doing that. Read the post jackass
Its 5% for owner occupied, 10% for investor NOO, and 15% for the rehab loan.