All Forum Posts by: Kel S

We are thinking in the future of getting HUD approved, but not sure what the process is, how difficult it is or how long it takes.

Can anyone that has gone through the process give me some insight? Home is in Ohio. I did print out their inspection forms so I have an idea of what all they will check when doing the inspection so would make sure everything is as it should be. But curious how long and/or difficult the process may be?

Also do they send prospective renters to you or do you advertise like normal? If you get a tenant that has a voucher and would like to rent the place, but your home is not yet approved, can they move in while the home is going through the HUD approval process or do you have to wait to get that all done first? I imagine it would be wiser to wait, but just curious if they would accept an existing tenant? Like if you were willing to work with them until the HUD approval, etc., came through.

I'm still debating if I want to go the HUD route, so thought I'd find out as much as I can first.

Thank you John, Tom and Tim.

It's in Toledo and Tim your GOOD...it was built in 1927 :mrgreen:

Whew!! A little less than 2 months as of yesterday, we closed on our first investment property. It's a 2 bed/1 bath home that is one story and appx 900 sq feet. Not including the basement and walk up attic.

This was a foreclosure that we picked up for 30k. It's located in one of the best school districts here and that was a big plus for me and the neighborhood is a very good area.

The house only needs minor things like interior painting and general cleaning. Structurally it's very sound according to what the inspector we hired said and our own observations. The most expensive thing we have to do is install a new hot water heater. The one there works but is showing a lot of rust at the bottom so we want to replace that. The other things it will need is fixing a section of the fence in the backyard, putting a railing up for the stairway to the basement and shampooing the berber carpets in the two bedrooms and hall. And just general labor as far as clean up. There is a little mold we have to tackle in the basement and asbestos around a couple of the furnace vents in the basement (scared the cr*p out of me when I first learned that) The inspector who has been working on homes and doing inspections for 40+ years said we can seal that asbestos and it won't be a problem. Rather than trying to remove it.

I spent most of today painting kilz on the walls after cleaning the walls yesterday. I'm already whipped and I haven't even started on putting the actual paint on yet :lol:

It's a small place, but quite cute and overall I'm thrilled that we made this investment. Time will tell of course but right now I'm happy and already the wheels in my brain are turning on the next one. But I'm going to take it slow so I'll (hopefully) make wise choices. This also was a great learning experience. The process in buying a foreclosure wasn't a piece of cake by no means and there were some uncomforable bumps in the road and the waiting I think was the worse part as patience isn't my strongest points. But I'm working on that (;

Here are some pictures.
http://www.picturetrail.com/sfx/album/view/20741389

It will look cleaner on the inside after we get the painting done
:mrgreen: :wink:

My GOALS for December are once we close on our first investment home tomorrow is to get in there and start cleaning it. All of the work I would consider minor (cleaning walls, painting, installing new hot water heater, fixing a section of fence, etc.,). Plus purchase a fridge and W/D set. I hope to get this done this month for sure. Preferably all finished before Chrismas :mrgreen:

I know. It's absolutely mind boggling that he sees nothing wrong in doing this. What's even more startling is that the authorities aren't doing a thing about it!

While I'm extremely new to investing, I guess the answer would depend on what your goals are.

For us, we plan on buying and holding (renting). We hope to build our investment portfolio over the next 10 years with several properties. With the end goal being that when we retire we will have either A) Rental income streams and/or B) Property that will go back up to market value that we can sell.

I hope that our goals are realistic. I look at them in a modest way because I don't see it as a get rich quick plan, but rather to give us the ability to have a more financially comfortable retirement when the time comes.

I suppose I would be conserned if I had a vacant property that I couldn't check on often.

http://www.foxnews.com/wires/2008Dec01/0,4670,ForeclosureSquatting,00.html

Miami activist moves people into foreclosed houses
Monday, December 01, 2008

By TAMARA LUSH, Associated Press Writer

MIAMI — Max Rameau delivers his sales pitch like a pro. "All tile floor!" he says during a recent showing. "And the living room, wow! It has great blinds."

But in nearly every other respect, he is unlike any real estate agent you've ever met. He is unshaven, drives a beat-up car and wears grungy cut-off sweat pants. He also breaks into the homes he shows. And his clients don't have a dime for a down payment.

Rameau is an activist who has been executing a bailout plan of his own around Miami's empty streets: He is helping homeless people illegally move into foreclosed homes.

"We're matching homeless people with people-less homes," he said with a grin.

Rameau and a group of like-minded advocates formed Take Back the Land, which also helps the new "tenants" with secondhand furniture, cleaning supplies and yard upkeep. So far, he has moved six families into foreclosed homes and has nine on a waiting list.

"I think everyone deserves a home," said Rameau, who said he takes no money from his work with the homeless. "Homeless people across the country are squatting in empty homes. The question is: Is this going to be done out of desperation or with direction?"

With the housing market collapsing, squatting in foreclosed homes is believed to be on the rise around the country. But squatters usually move in on their own, at night, when no one is watching. Rarely is the phenomenon as organized as Rameau's effort to "liberate" foreclosed homes.

Florida _ especially the Miami area, with its once-booming condo market _ is one of the hardest-hit states in the housing crisis, largely because of overbuilding and speculation. In September, Florida had the nation's second-highest foreclosure rate, with one out of every 178 homes in default, according to Realty Trac, an online marketer of foreclosed properties. Only Nevada's rate was higher.

Like other cities, Miami is trying to ease the problem. Officials launched a foreclosure-prevention program to help homeowners who have fallen behind on their mortgage, with loans of up to $7,500 per household.

The city also recently passed an ordinance requiring owners of abandoned homes _ whether an individual or bank _ to register those properties with the city so police can better monitor them.

Elsewhere around the country, advocates in Cleveland are working with the city to allow homeless people to legally move into and repair empty, dilapidated houses. In Atlanta, some property owners pay homeless people to live in abandoned homes as a security measure.

In early November, Rameau drove a woman and her 18-month old daughter to a ranch home on a quiet street lined with swaying tropical foliage. Marie Nadine Pierre, 39, has been sleeping at a shelter with her toddler. She said she had been homeless off and on for a year, after losing various jobs and getting evicted from several apartments.

"My heart is heavy. I've lived in a lot of different shelters, a lot of bad situations," Pierre said. "In my own home, I'm free. I'm a human being now."

Rameau chose the house for Pierre, in part, because he knew its history. A man had bought the home in the city's predominantly Haitian neighborhood in 2006 for $430,000, then rented it to Rameau's friends. Those friends were evicted in October because the homeowner had stopped paying his mortgage and the property went into foreclosure.

Rameau, who makes his living as a computer consultant, said he is doing the owner a favor. Before Pierre moved in, someone stole the air conditioning unit from the backyard, and it was only a matter of time before thieves took the copper pipes and wiring, he said.

"Within a couple of months, this place would be stripped and drug dealers would be living here," he said, carrying a giant plastic garbage bag filled with Pierre's clothes into the home.

He said he is not scared of getting arrested.

"There's a real need here, and there's a disconnect between the need and the law," he said. "Being arrested is just one of the potential factors in doing this."

Miami spokeswoman Kelly Penton said city officials did not know Rameau was moving homeless into empty buildings _ but they are also not stopping him.

"There are no actions on the city's part to stop this," she said in an e-mail. "It is important to note that if people trespass into private property, it is up to the property owner to take action to remove those individuals."

Pierre herself could be charged with trespassing, vandalism or breaking and entering. Rameau assured her he has lawyers who will represent her free.

Two weeks after Pierre moved in, she came home to find the locks had been changed, probably by the property's manager. Everything inside _ her food, clothes and family photos _ was gone.

But late last month, with Rameau's help, she got back inside and has put Christmas decorations on the front door.

So far, police have not gotten involved.

Congratulations!! Sounds like you got a great deal! We are closing on our first foreclosure this week and I have to admit, I'm quite excited.

Whew...it's been a journey with a few bumps in the road here and there but I'm happy to report that we will be closing on our first investment (foreclosure) house this week. I can't tell you how happy I am to see this day coming.

It feels like it's taken forever but when I look back we put in our offer on Oct, 8th. So in reality it hasn't been all that long I guess. Less than 2 months. What is the adverage time frame from offer to closing that you all have experienced?

I can't wait to sign the papers, get the keys in my hand and go over and wash/paint the walls, do the minor repairs like add a railing to the basement, etc.,

If anyone else going through the process of buying a foreclosed home, hang in there. There is light at the end of the tunnel.

I've actually forgot now what my question was :lol: But in any case, we are past that point now in the foreclosure. The question had to do with sheriff deeds and how long that process took. The bank sent payment to pay for that and now we are just waiting for the bank to get the deed so we can set up a closing date.

Hopefully, that will happen soon or we'll have to put in a second addendum asking for another closing date extention.

I'll be SO glad when this gets closed.