Real Estate Investor · Ottawa, Ontario · Member since 2011 · 217 posts · 14 votes
I just found that most HUD properties remain unsold in the first 10 days on the market, and right after the 10 days, a lot are sold very fast. So what is the magic of the "first 10 days", is it just a random phenomina or a result of certain policy that I don't know? Any comments or information is appreciated.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
15y
HUD use four categories:
1. Dollar = only Government can bid on these
2. Lottery = Nonprofit and government only
3. Exclusive = OO, nonprofit and government
4. Extended = investors can bid here
All categories have timelines, look at HUD list and pick your specific propertie. At details you will find "period deadline" so you can figure your chance for a bid.
Real Estate Investor · Ottawa, Ontario · Member since 2011 · 217 posts · 14 votes
15y
Ok, I just googled it, and found that the first 10 days are only for occupant buyers. Then the question is why occupant buyers dont buy HUD properties in the first 10 days when they face much less competition from investors? Does this mean that most of the HUD propeties are bought by investors?
Still, can any body tell me what is the qualification for dollar houses provided by HUD? and are dollar houses available only availabel within a certain frame, for instance, after 1 year been on the market? thanks.
Originally posted by Michael Stole:
I just found that most HUD properties remain unsold in the first 10 days on the market, and right after the 10 days, a lot are sold very fast. So what is the magic of the "first 10 days", is it just a random phenomina or a result of certain policy that I don't know? Any comments or information is appreciated.
Flipper · Phoenix, AZ · Member since 2009 · 973 posts · 679 votes
15y
Originally posted by Michael Stole:
Still, can any body tell me what is the qualification for dollar houses provided by HUD? and are dollar houses available only availabel within a certain frame, for instance, after 1 year been on the market? thanks.
Check out http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm
HUD homes are generally purchased by investors because of the condition they are in. It's rare for a foreclosure to be in move-in condition, and owner occupants often don't have the resources to fix them up. It does happen though.
Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
15y
HUD use four categories:
1. Dollar = only Government can bid on these
2. Lottery = Nonprofit and government only
3. Exclusive = OO, nonprofit and government
4. Extended = investors can bid here
All categories have timelines, look at HUD list and pick your specific propertie. At details you will find "period deadline" so you can figure your chance for a bid.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Most first time homebuyers (of which most HUD buyers likely are) are going to get FHA loans for their purchase.
In order for a house to qualify for an FHA loan, it needs to pass inspection and essentially be move-in ready.
Even a missing stove or fridge will disqualify a house for FHA funding, so most owner occupants will have to pass on houses wi just these small types of defects.
Involved In Real Estate · Battle Creek, MI · Member since 2010 · 18 posts · 25 votes
15y
even if they are sold on the 10th day it is still likely an owner occupant buyer, because they do not review any offers until the 10th day...even if a buyer was an owner occupant and bid a million dollars over listed price it would not be reviewed until the tenth day...
Homeowner · los angeles, CA · Member since 2011 · 57 posts · 1 vote
15y
Originally posted by J Scott:
Most first time homebuyers (of which most HUD buyers likely are) are going to get FHA loans for their purchase.
In order for a house to qualify for an FHA loan, it needs to pass inspection and essentially be move-in ready.
I am also looking into buying a HUD home. Does the normal bank financing also based on a "move-in" condition of the home.
If I plan to buy a foreclosure home with HUD or auction do I need a special lender ? Do I need to tell the lender about the type of home I am planning to purchase during prequalification ?
I overbid on a Hud Home by more than 14K dollars on the 10th day, but my bid was still not accepted. I have read the comments about the 85 to 90% so this whole process is confusing to me. Help?
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
15y
Originally posted by Kathy Hogan:
I overbid on a Hud Home by more than 14K dollars on the 10th day, but my bid was still not accepted. I have read the comments about the 85 to 90% so this whole process is confusing to me. Help?
There is a big difference between an accepted bid and a winning bid. There are too many variables to know why your bid didn't win. Was it accepted? Your broker should know and be able to show the confirmation. Are you bidding as an investor or owner occupied? Etc. The bottom line is the highest net price to HUD almost always wins the bid.
Unless you have access to the bid statistics, you may never be able to tell how/what/why the winning bidder beat your bid.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
15y
Originally posted by Gaurav Sharma:
I am also looking into buying a HUD home. Does the normal bank financing also based on a "move-in" condition of the home.
If I plan to buy a foreclosure home with HUD or auction do I need a special lender ? Do I need to tell the lender about the type of home I am planning to purchase during prequalification ?
Thanks.
A conventional lender won't be as strict as a FHA inspection. They do typically require the house to be habitable. Meaning you could move in right away, though you might not really want to.
There are also rehab programs. The FHA 203K for one. Banks might also do rehab type loans. If you're wanting to buy a junky house, these might be options.
Someone else might have bid $15K more than the listing price. Simple as that.