HUD Guidelines 24 CFR 206.125 - Pricing/Offer
Sorry if I'm asking an already answered question, but I did a couple of searches on BP and didn't find anything that directly addressed this subject. I'm currently looking at property in Mansfield, OH that falls under the HUD Guidelines 24 CFR 206.125. From my understanding, this is due to the property having a Reverse Mortgage, and as such the bank will only accept offers that are 95% or more than the listing price. It also seems that after a period (typically ~60 days from my research) the bank will then accept a lower percentage offer.
Given that information, I have a couple of questions I was hoping someone could answer.
- Does anyone have experience purchasing these types of homes? Any advice or guidance you may have?
- In Ohio, what is the minimum percentage of the listing price that banks will typically accept?
- How long does it usually take for a bank to lower the amount they are willing to accept for the property?
From the numbers I've run here on BP, I would need to get the house about $15k-20K below asking price for it to fit my target numbers. Just trying to figure out my odds of getting an offer accepted if I lowball it that much. This would be my first purchase, so just trying to get my ducks in a row.
Thanks for the help everybody.
- J