Real Estate Investor · Charleston, SC · Member since 2012 · 32 posts · 7 votes
I know of several properties that have HUD case numbers assigned to them; but are not on MLS or HUDhomestore.com. These are homes that have been already been placed with realtors; but do not have (to my knowledge) have accepted contracts. Has anyone run into this situation before? I am curious to know if there is more inventory out there than the normal channels indicate. Is it usual for HUD foreclosure to never hit MLS?
As a side note, this is a new market for me and I have not purchased anything since 2010.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Homes will get assigned to a listing agent and assigned a case number prior to listing. Generally, there is a 1-2 week lag between the assignment and the listing, during which time the listing agent is getting the home ready (in some cases) and the BPO is being completed.
They will likely be listed in the next week or two, at which point you (your agent) can make an offer through HUDHomestore.com.
Real Estate Investor · Charleston, SC · Member since 2012 · 32 posts · 7 votes
14y
Thanks for the reply. Is there a requirement that all HUD homes be listed on HUDhomestore. I know of one property in particular that has both a HUD case number and a listing agent; but fails to appear in MLS or HUDhomestore
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Originally posted by Heather T.:
Thanks for the reply. Is there a requirement that all HUD homes be listed on HUDhomestore. I know of one property in particular that has both a HUD case number and a listing agent; but fails to appear in MLS or HUDhomestore
I *believe* that all HUD homes are listed on HUDHomestore. In the case of the house you mention, I'm guessing that it will be listed soon, or that there is some issue that would prevent the house from being sold and HUD is trying to resolve that issue prior to listing.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y
I would imagine that HUD would get title at foreclosure and then face an extended battle with the occupants in evicting those occupants. The longer they can stay, the longer they live for free, so the eviction process could be partly the reason for delayed listing.
Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
14y
I've heard that HUD is sitting on a ton of houses to keep from flooding the market. They want to sell them in an even flow. Not sure if it is true, but I have heard it from several people.
Real Estate Investor · Charleston, SC · Member since 2012 · 32 posts · 7 votes
14y
Steve Babiak You may right. I get information from a property preservation company that has access to properties before they hit the market. While there are realtors assigned to them (to do routine inspections) they aren't actively marketing them. This isn't just HUD foreclosures but also banks. I think from the bank perspective, its about accounting for maximum losses (ie reaching the max write off then holding the rest for the next year) and curious if they will flood the market after the first of the year.
Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
14y
Originally posted by Rob K:
I've heard that HUD is sitting on a ton of houses to keep from flooding the market. They want to sell them in an even flow. Not sure if it is true, but I have heard it from several people.
Of course. Its in their self interest and politically wise. After all, flood the market, bad news in the community, your elected representative losses points in the polls and then sends the highly unaccountable and scary CFPB after you.
I'd say they trickle of homes on the books could be one of the following:
1. Banks taking advantage of "time" and appreciation.
2. Smaller banks sometimes trickle it out because realization of real values forces them to take the loss whereas if the home stays on the books it stays at whatever value they say. By trickling out the homes it spreads the losses out and allows for Capital ratio adjustments to realized losses.
3. I believe this one is powerful - its all about propping up incumbents for the election.
Investor · Diamond Bar, CA · Member since 2009 · 446 posts · 233 votes
14y
Originally posted by Scott W.:
no wonder they're jacking up their fees left & right for consumers.
Another reason is that The Frank Dodd Act severely restricted overdraft fees they can collect. All the Free Checking banks covered costs with those fees which they considered "voluntary".
So the Govt, in an effort to help the poor, hurt the poor by eliminating free checking from most banks (the ones left are planning their elimination I read in American Banker yesterday). Now the working poor get to lose $10 per month instead of managing their accounts correctly and avoiding fees altogether.