All Forum Posts by: Robert Jensen

Does this look like termite damage? I have a termite repot that was done a month ago but no mention of this. There is also an opposum in the area. Could this be marks from the oppsoum or some other animal? Its only on the moulding. 

I am currently in escrow on this place. 

I was thinking if repairs are known to be over $30,000 by a previous buyer's inspection, then they would have to state repairs over $30,000 needed. The increments if they exist seem to be $5000, $10,000, $30,000 The HUD guideline could be along the lines that 'anything over $30,000 in known repairs needs to be stated as such'.

My situation is I have a HUD disclosure that says "over $10,000 in repairs needed". I'm trying to decipher what that means.

Will the repair disclosure say "over $10,000 in repairs needed" even the repairs are $1,000,000? 

What are the increments in repair costs? e.g. I read that some state over $5,000 and some state over $10,000. Is there also an over $30000? The home I am looking at needs over $10,000 in repairs...

How can one make an illegal unit, legal? Has anyone gone through the process? 

Looking to buy a house in Sacramento that has 600 sq feet of illegal added additions. They look professionally done -- match the existing house perfectly. The house is priced without considering this extra space. 

I come across this sort of thing often and have always wanted to know the process of legalizing these un permitted structures. Is it really that difficult?

Old thread, but Im going through this now. It says on the bid results page that it does not display until its under contract. 

The place I bid on says pending offer and it was pulled immediately from the listing less than 24hrs from the opening date. I never received a call from them so I'm assuming it wasn't my offer. My agent never called either. Oh well. Next one. Would of been nice if they communicated but its gov, what can we expect. 

addendum: The asset managers org is called BLB Resources. So I assume he is the BLB?

To make things even more confusing the HUD housing site says to completely ignore the broad listing broker amount.

Line 5. Closing Cost Closing cost up to 3% of the purchase price. Note: This line must be left blank for GNND sales

Line 6a. Selling Agent Commission up to 5% of the purchase price. Note: This line must be left blank for GNND sales. Sales commission must be negotiate independently of this contract

Line 6b. Broad Listing Broker Commission. This line is no longer used. Leave blank or enter zero.

Line 7. Net to HUD Subtract lines 5 & 6a from line 3 = Net

Thanks for the responses. 

Now I have questions regarding the net amount. From what I researched the place is worth about $350k and has potential for much more given the added professionally built additions that are not included. Here are the numbers on my bid confirmation. 

• Agreed purchase price: $312,000
• Seller will pay reasonable and customary costs of obtaining financing, closing (not including agent): $6500
  
• Seller agrees to pay to the  broker a commission: $9,000
• Seller agrees to pay to the broad listing broker commission(if broker identified is not the broad listing broker): $9,000
• Net Amount to seller: $288,000

My questions are: 

How does HUD decide the bid? Do they look at the offer amount or do they solely look at the net amount?

Is the broad listing broker actually the asset manager because my agent is shown as the listing broker on the HUD site?

This is also from the HUD site: The Asset Manager is the HUD contractor responsible for the sale of the property. The Listing Broker was hired by the Asset Manager to assist with the marketing of the home. The Field Service Manager is responsible for maintaining the property.

I am about to place a bid on a HUD property. The agent I am working with is saying I will need to bid about 117% of asking price to win the bid. Is it common to have to bid this high? From what I read 88% of ASKING price usually wins the bid. The asking price currently is 72% of the appox(based on surrounding houses) ARV. Bidding at 117% would make this 85% of the ARV. I would be living in the house for the first year while fixing it up so the bid would for owner -occupy.

I find this questionably worth it since the place does need complete remodeling. New floors all around, kitchen, 2 bathroom remodels, full interior paint, and some minor repairs.  

Is this a no brainer 'dont do it' or is 85% of the ARV for a fixer HUD home an average deal?

I am looking at possibly getting a rental in the sketchiest parts of East Oakland. Just seeing if anyone else has experience renting in East Oakland. Did you property manage? How bad was it? Were you able to find good tenants?