We are investors in Houston and just have a quick question about HUD Foreclosures. Our realtor said that with these properties they wont even look at any offer that is less than asking price? Is that true? Is there no negotation with HUD foreclosures?
Thanks in advance
Not true. HUD will accept less. The amount less depends on the time on the market. However, in many areas you will get multiple bids and have to bid over anyway.
That's completely false. Fire that agent! That response tells me they are either 1.)unfamiliar with HUD bidding/purchases and are therefore ignorant and intimidated by the unknown, or 2.) trying to get you to pay as much as possible. Either way, get away from them!
Shoot, there's even a HUD program for people in professions such as nurses, EMT workers, teachers, firefighters, LEO that will allow them to purchase the property for 50% of the asking price. (yep, HALF OFF!) (the people and the property have to qualify, but shoot, 50% of purchase price is good on almost anything, ESPECIALLY houses!
There are different bidding periods in HUD purchases. Exclusive means only o/o's can bid...and yes, the sales prices are usually higher there. Extended bidding means investors can bid...and you can get some pretty good deals.
Talk to someone who has experience with HUD and knows the hoops they need buyers to jump through...there are a couple doozies!
**Investor purchases of HUD houses do not allow for an inspection period.....be aware before you bid!
Thanks for the great answers! Our agent did say that he read in the agent remarks that this was no offers under Sales Price would be considered, so maybe its not so bad of a situation. I am still looking for other realtors who are more investor friendly, but it is difficult in the West Houston area so far.
It seems i also have a lot to learn about HUD properties. Time to search the forums.
There are a few investor's friendly realtors in the Houston area but to get their attention show them a bank statement, they have been burnt many times before by tire kickers.
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