Lender · Swedesboro, NJ · Member since 2016 · 8 posts · 0 votes
Currently looking at a home at auction on Hubzu. I would like to make it my primary residence w/ 5% down. Meets the 70% rule so I will have a good amount of equity when all is said and done. It does need work and I would be responsible for CO. Spoke with lender who advised that appraiser would have the biggest effect on whether or not I could close on home. Also amount of time given to close. Should be able to get letter from township explaining that they are aware of the home closing without CO and CO will be obtained after closing. It seems like I should not have an issue, but I would like to cover myself. Anything I could be missing? Anyone purchase home from Hubzu? Any issues or recommendations?
Depends on who owns it. If it's just a bank selling an REO on Hubzu, then you might be able to get it done. The banks tend to be more organized about what they want. private sellers not so much. Hubzu isn't so bad once you figure out all the paperwork and rules.
If you go through Hubzu, you will have to pay a 5% buyer's premium, which is a fee to Hubzu for hosting the auction. Adds to your total costs.
The real problem depends on the amount of rehab needed. In many cases, you won't be able to get a conventional loan nor an FHA loan on a HUBZU REO due to the damage. The hard to sell properties tend to end up on Hubzu. Obviously, not always the case. They just tend to be in rough shape and winterized.
If you know up front that they have certain issues like no CO or they won't turn on the utilities and such, run that by your lender first. Some will work with you, some won't. To make a smooth transaction, have those conversations now so that you're ready.
A 203K can make it possible if the house doesn't have a CO or they won't turn on the utilities. Obviously, it can help if there is too much damage for a conventional or regular FHA loan.
Outside of those typical things, it's really just about weeding through Hubzu's rules and purchase agreement and following the dates and timelines to send in your earnest money and such.
Lender · Swedesboro, NJ · Member since 2016 · 8 posts · 0 votes
7y
@Christopher Phillips
Thank you for all the info! I will need to do some more digging on my end.
Do you know if the buyers premium could be wrapped into the mortgage?
Also my realtor showed me the home and many others before it. I would like to make sure she is taken care of. Will she receive a commission if I purchase through Hubzu? Would she be placing bid on my behalf or would I place the bid?
Thank you for all the info! I will need to do some more digging on my end.
Do you know if the buyers premium could be wrapped into the mortgage?
Also my realtor showed me the home and many others before it. I would like to make sure she is taken care of. Will she receive a commission if I purchase through Hubzu? Would she be placing bid on my behalf or would I place the bid?
You’re welcome. Always happy to help...
Yes. Your agent can submit on your behalf. They usually need to if the auction property is on the MLS.
Depending on your total preapproval amount, the buyer’s premium can be added to your financing.