Updated about 11 years ago on . Most recent reply
HUD - Wholesale?
Ok, I asked a question on this yesterday and didn't get any replies. Hopefully someone will take pity on me today. I have a good looking wholesale deal that I'd love to get under contract but the property is under "HUD guidelines 24 CFR 206.125" I'm reading conflicting information. It fairly clear that you cannot buy the property for less than 5% of the assessed value but I also read that it's either 5% under assessed value or for the amount that is owed on the property. Whichever is less. Does anyone know? Also, I didn't see anything about not being able to assign the contract to another buyer. Does anyone know if there are any restrictions on this?
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#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
CFR 206.125 (for RM's owned by FNMA, insured by HUD) requires the sale to be At the current, as is, FHA appraisal, not 95% of appraisal. No repair credits, no buyer costs paid, nada. As with other FNMA REO's, I would assume there is no assigning allowed. Most RM's, FHA insured-non FNMA owned-require a price at 95% of appraisal.