Rental Property Investor · Washington, D.C. · Member since 2012 · 66 posts · 5 votes
There is a 3/1 home for sale for a few thousand dollars in my target area. Does this mean I have to pay 95% of the original mortgage held by the lender after the purchase? The home is listed in foreclosure and was recently occupied.
Thanks!
Rental Property Investor · Washington, D.C. · Member since 2012 · 66 posts · 5 votes
13y
Kyle J. Thank you. So does the article mean that there is more payment due after the sale? (The home is foreclosed on from a reverse mortgage.) Any reply appreciated.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
13y
Originally posted by Kerry M.:
Kyle J. Thank you. So does the article mean that there is more payment due after the sale? (The home is foreclosed on from a reverse mortgage.) Any reply appreciated.
Kerry
I'm not an expert on the matter (maybe someone who is will chime in with more info), but what payment after the sale would you be referring to? It's my understanding that the mortgage would be satisfied upon the sale of the property.
Here's the actual text of the HUD guideline if you're interested or it help clear up any remaining questions:
Plymouth, MA · Member since 2012 · 2 posts · 0 votes
12y
Hi Kerry, were you able to purchase this property? If so what was the time frame from offer to close and what if any potential roadblocks did you run into?
I am looking into a similar property that was foreclosed on under this CFR.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
On reverse mortgages insured by FHA, which is the overwhelming majority, a lender must sell the property for at least 95% of the FHA appraisal in order to be reimbursed in full under their insurance from FHA. These sales, which are short sales, are final...no assumptions of additional debt by the purchaser.
Investor · Somerset, NJ · Member since 2015 · 5 posts · 1 vote
11y
Hi Chris,
A fellow Union Farmer!
I'm looking at one of these properties right now as well, in Middlesex County. Did you get anywhere with the one you looked at? Any additional information on if they take offers below listing price?
Real Estate Agent · Richmond, VA · Member since 2015 · 5 posts · 0 votes
10y
Any updates here? Has anybody successfully purchased a HUD property with HUD Guidelines 24 CFR 206.125???? I'm currently trying to figure out a purchase on a property like this.
Investor · Cincinnati, OH · Member since 2012 · 506 posts · 331 votes
10y
I have. Generally, the only price that the seller can/will accept is list price. I've paid less, but it's always been due to lucky timing where a price reduction was about to be posted or the agent processed a price reduction to meet my price.
In terms of the closing process, it's just like any other purchase.
I have. Generally, the only price that the seller can/will accept is list price. I've paid less, but it's always been due to lucky timing where a price reduction was about to be posted or the agent processed a price reduction to meet my price.
In terms of the closing process, it's just like any other purchase.
This is a great thread. Thanks to everyone who answered here.
I have a question though. I understand the offer amount on a property under this guideline has to be 95% of asking price or higher.
But what about concessions? Can we ask for any amount of cash at closing for repairs?