There is a single-family home that I have been eying for six months -- vacant, and needs a lot of work. I am a new investor (with four units in Atlanta), but I am interested in making this home my primary residence.
I looked up the records and found it was foreclosed, and the bank took ownership of it. That bank folded, and it was bought by Wells Fargo.
I called Wells, and they said the home would be eventually listed on the HUD Home Store. I called the Home Store, and they were entirely unhelpful as to when they may be bringing the property to market.
Is there anything that can be done now? Or do I just have to wait it out? Are there any HUD specialists that know how to pull magical strings to make deals like this happen?
Thanks in advance!
Basically you have to wait it out.
patience Grasshopper! It could be tomorrow or it could be in two years, but you have done all you can do.
@Joshua Feit Sounds exciting!
You need a HUD broker to bid on HUD homes. I'd start talking to the brokers and get educated on HUD bidding for owner occupants and what it takes to win.
I know of two HUD brokers involved in GA REIA. I'll send them via email.
I am a HUD listing broker and all you can do is wait.
Well, that's not the answer I wanted, but it is the answer I needed. Thank you all very much for your input!
And yes, @Rick Baggenstoss , I would love the contacts. Thanks much
Wait, usually not that long less than a year. But I do know of 2 properties that HUD had for 7 years before they marketed them.
@Joshua Feit The timing from foreclosure to marketing on HUDHomeStore depends on the property and the foreclosing lender often. From my experience of working for a big lender, sometimes it would take months or longer to get the property in conveyance condition. That's the minimum acceptable condition of the property that HUD requires before they allow the lender to convey the home over to HUD and pay the (mortgage insurance) claim.
A lender may have their field contractor go out to get the property ICC only to have it vandalized, stripped, etc, then they have to get new bids and fix new damages. This can be repeated several times.
Also, title issues may be slowing the conveyance or possibly causing a "reconveyance" from HUD back to the lender. I have also heard of reconveyances for repairs. All the while, the home sits empty and continues to deteriorate and devalue. And coincidentally, there's a home in my county that I've been waiting on for my clients (we're a HUD broker also) for eight months. My clients recently gave up and bought a different home.
One other thing that I've seen happen a couple times recently is that there was an error in the foreclosure process and some lien was not wiped out. HUD won't accept the property from the bank and wants the bank to clear the title before HUD will accept ownership.
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