Im a new real estate agent, one thing I was considering doing with my license was bidding on HUD properties in my states and wholesaling them. I hadnt kept up much on it or the HUD homes site. There was a lot of homes on there before but now theres not too much, I dont think there is 1 HUD home in my county at the moment.
I guess most of the distressed proeprties out there went away; REOs, shortsales, foreclosures etc. HUD takes over FHA foreclosures it thinks can be more profitable to them by selling it themselves if I remember correctly.
Has this boat sailed?
@Kyle Clark .. I purchased HUD homes in the past without much competition, but prices in my area increased the last 6 months...still o.k, but not as low...
In my target areas, very little inventory makes it into the Extended phase, even though HUD has reduced the OO period down to 15 days. I suspect there are some investors buying as OO so I track all the properties that I am really interested in. The ones that do get to the Investor phase arent really good deals, but they still get snapped up on the first day.
I am a HUD inspector. The properties are selling so fast that my property list for inspections went from 140 just a year ago to 48 properties.
I am amazes every week that I still have a job
The inventory is at its lowest level in many years
I was told by a HUD Listing Broker a few weeks ago that FHA was doing alot of these now as short sales.
1. HUD is selling off pools of properties. They are offering 40,000 this month
2. With prices going up, many banks are keeping the foreclosures instead of using the insurance and giving them back to HUD.
3. HUD lost money for the first time and is being more selective of what properties they take back with insurance. They are challenging more banks claims. There are 80,000 properties that banks want to give to HUD, that HUD has challenged.
@Mark, Do you know how you would go about buying these pools of properties?
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@Clay Daughtry be a hedge fund with hundreds of millions of dollars. It is not a cherry picking type deal. You bid on all 40,000 properties at once.
One West bank and Wells Fargo have over 25000 foreclosures in California. They are not turning over to HUD. They are keeping them on their books at this time later in the year they will bundle them up and sell to investors.
Inventory in my area is staying on the market a lot longer, and the % I was buying at seems to have increased a good bit.
@Raymond B. Thanks for clarifying how to use the tag. I was struggling with that and it was so frustrating!
Could someone clarify, are HUD homes properties that use to have an FHA loan that got foreclosed on? Also, can you finance a HUD property or does it have to be a cash buy?
Yes, they are homes that had an FHA loan foreclosed on. You can finance them or pay cash.
@Mark Ferguson are there any special loan programs for buying hud homes like home path for Fannie Mae?
@Christian Bors no, HUD does not offer financing programs.
@Mark Ferguson any knowledge or experience with lihtc hud program ?
, I am not sure what program that is.
@Mark Ferguson okay
I will perform more research on lihtc.
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