I Bought a house from Hud and now a lady called saying her mom died and it is her property. Should I be worried?

19 Replies

I bought a HUD home in Birmingham Alabama about a month ago. The house needs everything done. I put a new roof on it already and have resided the front.
Today I had a lady call me saying her mother owned the house and that she died and she is the next of kin and the house was sold illegally. She asked who i bought the house from and i told her HUD. She said she was trying to figure all this out to give the information to her lawyer.
This is my first rental and I don't want to invest all this money into renovating the property i could possibly lose the property. I called the Title company and they said the 1 year statue of limitations has expired and that i was protected. I was just wondering if this lady has any ground to stand on?

Your responses are most appreciated.

You are good, as long as their wasn't any fraud involved (like someone took out a mortgage in the mom's name without the mom knowing about it... then the mom died and then the house was foreclosed on)

Oh and sold illegally, probably means that she didn't know about the foreclosure... but who knows. 10 bucks says she has no interest at all in the property and she is looking for money.

How would i find out if there was any fraud? I'm in the process of renovating the house. If there was would i be covered for the repairs?

I wouldn't even worry about it for five minutes. But I wouldn't have answered any of her questions on the phone either.

If you bought it from HUD, it means it was foreclosed on. There was a mortgage that the heirs may or may not have known about. Regardless, the mortgage most likely didn't get paid and the foreclosure went through Then their sale to you went through and I'm assuming you have title insurance.

Let the heir consult with attorneys and figure where she stands. I suggest you don't communicate with her or her attorneys (if she actually gets one). Let them make a case if they have one, against the lender and/or the title company.

I'm an investor/realtor in Pensacola FL and I've been working with a few investors that buy HUD homes and now that I'm an agent I had to learn the process from the inside as well.

How I understand it is that a big benefit of buying from HUD is that they have ironed out all the legal issues with the title before they sell it. If you were buying at the courthouse steps then I might be more worried but with HUD you should be safe.

That being said, if you have an real estate attorney you can call that would be your best bet for solid advise.

Thank you all so much. I think the lady is just looking for money as well. I will consult an attorney just to be safe.

Thank you all again for putting my mind at ease.

Don't waste any time or money with consulting anyone.

You bought it legally don't worry - unless she died from something seeping out of its structure then worry. :-)

It's a ploy for money.

I wouldn't waste one more second worrying about it. I wouldn't answer anymore of her questions if she calls back.

If anything she has a claim against HUD (99.99% chance she doesn't).

A HUD purchase is bullet proof. You can relax and rest easy. HUD regulations and rights trump everything. If HUD provided clear title - it's a clear title.

Whoever called you is wrong and their claims have no merit: none in law and none in equity.

stephen
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Originally posted by @Jon H. :
I bought a HUD home in Birmingham Alabama about a month ago. The house needs everything done. I put a new roof on it already and have resided the front. Today I had a lady call me saying her mother owned the house and that she died and she is the next of kin and the house was sold illegally. She asked who i bought the house from and i told her HUD. She said she was trying to figure all this out to give the information to her lawyer. This is my first rental and I don't want to invest all this money into renovating the property i could possibly lose the property. I called the Title company and they said the 1 year statue of limitations has expired and that i was protected. I was just wondering if this lady has any ground to stand on?
Your responses are most appreciated.

Ditto, ditto, ditto. If you talk to her again, just tell her to put down the pipe (the crack pipe).

I hope you got title insurance as well just in case. I have seen cases where title was not clear with HUD or a mistake was made. I sold a HUD home where title was not conveyed properly, but luckily the buyers got title insurance.

Mark Ferguson, http://Investfourmore.com | [email protected] | http://investfourmore.com | Podcast Guest on Show #68

I thought there was a three year right of redemption on a foreclosure in Alabama. She would still have to pay you for whatever you purchased the property for but not any improvements.

Originally posted by @Paul Wurster :
I thought there was a three year right of redemption on a foreclosure in Alabama. She would still have to pay you for whatever you purchased the property for but not any improvements.

Redemption in Alabama is allowed up to one year after foreclosure. Maybe you're thinking of tax lien or tax sale redemptions? 3 years would be beyond onerous for a lender. One year is bad enough IMO. But I work a state with no redemption after foreclosure or tax sale, so I'm spoiled in this regard.

The OP checked with his title company and they told him the 1 year SOL had passed. I assumed the SOL to mean the redemption period had passed.

I think he's good. We don't know who the person that called the OP really is. We don't know if they are an actual heir or exec and have any rights or interest in the estate, and/or if they have the cash to pursue a wrongful foreclosure and tender the redemption money. It looks like that ship sailed over a year ago.

Its a scam...ive seen it in and out..Alot of scammers are using HUD now a days and getting away with it..The next things she or her "lawyer" will do is call you threaten you and try to scare you, then say we can settle this for $2000....We wont sue we wont go to court...blah blah blah....And you wouldnt beleive how many people fall for it...

One of the biggest scams in Atlanta right now are scammers are going to HUD homes removing all the hud stickers, they sometimes remove the listing agents signs...and replace it with their own...and any evidence HUD owns that home.Then they put signs up on the poles "House for cheap 35k call 555-55"

Of couse people call, and they sucker people into beleiving they have multiple offers but the property can be theres if they put 2k-4k-6k down for a deposit..And of course they do it...Most of us would smell scam as soon as we looked up the property...But they prey on the weak...Anyway dont worry dude...

HUD delivers clean title, like mentioned above they are bulletproof......

If it were me, I would make a quick call to my real estate attorney to see what he thinks...if you don't have a great re atty you need to find one. He can probably take a quick look at it and counsel you what you need to do. Definately worth the 1/2 hour of billings ($125 in my case) that you'll pay for the peace of mind.

It's worth reminding ourselves that anything of substance

in Real Estate has to be done in writing ! Phone calls don't

get it! Further, any exchange you have had with HUD is

between a Seller and Buyer not for outside review by " on-lookers".

Any further contact needs to be directed to HUD and your Title

Co. . You should insist that all further communication be via letter

particularly as legal action was mentioned.

Chances are you won't hear from this person again but if you

do-let her tell it to HUD! You are not responsible for the process

of the foreclosure period! You have a Recorded deed. This person

has an "angle" Be concerned -but not worried. Best for Success !

i would certainly love an update! Do you still have the property? What happened if anything?

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