How to Acquire a HUD Owned House
Hi All,
I found a lead that I'm thinking about wholesaling, and I don't know if it will be a good deal or not until I know what I can get it for... The property is foreclosed and HUD owned. I took a Rich Dad webinar a while ago on wholesaling bank owned foreclosures. They were talking about pulling the mortgage info prior to foreclosure, using an amortization chart to calculate the profit the bank made in interest during the ownership, and subtracting that profit from the list price to get your starting offer. That strategy applies when the property is bank owned, so my question is: could that apply to a HUD owned property?
In this situation, the owners bought the property in 2002, foreclosed in 2013. The assessors site says the bank purchased "in lieu of" foreclosure, and then it was sold again in 2014 to HUD.
Can you guys explain to me how HUD properties work? How can they be purchased? should I stay away? Stuff like that... Also if someone could shed some light on what "in lieu of" means foreclosure process? Does that just mean the bank bought it?
Thanks!!