Can Investors Purchase HUD homes?

August 8th, 2012

Investors are eligible to purchase HUD-owned homes. Properties that are insured or insured with escrow are only eligible to owner-occupants, nonprofits and government agencies for the first 30 days. If HUD does not accept a bid during that 30 day Exclusive listing period, the property becomes eligible to ALL bidders on day 31. Uninsured properties are the exception and become eligible to ALL bidders on day 6 of the listing period.

The easiest way for an investor to see which properties are available to them is through HUD Homes Store (www.hudhomestore.com). After selecting the State, select “Investor” as the Buyer Type. This will show you every HUD property an investor is currently eligible to bid on.

How Do I Place a Bid on a HUD home?

Offers on HUD listings must be made through a real estate broker who is registered to bid. Buying a HUD home is a different process than buying traditional resales. When you choose a real estate agent, be sure they are experienced in bidding and closing HUD properties. If you need help finding a registered HUD broker, you can search for one on HUD Home Store (www.hudhomestore.com).

I Placed a Bid on a HUD Home. Now what?

HUD reviews bids and selects the highest and best offer. Email notices are only sent to the winning broker/agent. HUD does not notify you if your bid was not selected.

My Bid Was Accepted. What happens now?

Within 48 hours of your bid being accepted, your broker must submit a signed sales contract. Contracts not received by the due date or packages containing errors and/or omissions may be cancelled and the property put back on the market.

HUD requires $1,000 earnest money for offers more than $50,000. $500 earnest money is required for home sold at $50,000 or less. Coordinate with your agent regarding your closing deadline to be sure you close on time and do not forfeit your earnest money.

Where Do I Close a HUD Property?

If you choose your own closing company, HUD will not pay their fees. HUD will pay the fees of their approved closing company. Your agent will give you directions to their office.

I Need More Time to Close. What Are My Options?

If you cannot meet the deadline to close, your agent must submit an Extension Request Form. Extension fees are required if HUD accepts your extension request. All investors must pay these extension fees in certified funds, cashier’s check, or money order. Fees are determined by the price of the property. Your agent can discuss these with you if you need to extend.

What are we seeing in today’s market in NE Atlanta?

August 2nd, 2012

Quick update on Northeast Atlanta market:  You’ve probably noticed that we are experiencing a little uptick in the real estate market in the Atlanta area. 

Statistics worth noting in Gwinnett:  

  • Less than two months of inventory priced $150,000 and below
  • Just over five months of inventory in homes priced $150,000 – $250,000
  • Approximately 30% of ALL listed homes are currently Under Contract

We also cannot fail to mention that interest rates for home mortgages are at record lows. That makes it a great time to purchase whether you are a first time buyer or just making a change in housing to better fit your life and real estate needs. There are going to be many people in ten years who will say, “Boy am I glad we bought a house in 2012!”

Here are a few questions to evaluate if now is the right time for you to sell:

  1. What is your reason for selling?  We still see motivation as being king for selling in today’s market.
  2. Are you experiencing a hardship such as medical issues, loss of income, death of a spouse or divorce which is causing you to have a hard time making your payments? Short sales can be an option to avoid foreclosure if you don’t wait until it’s too late.
  3. Do you know what the market is like in your neighborhood? We have the tools to tell you if homes are selling and for how much.

Is this the right time for you to get back into the real estate market?  We are here to help when you are ready.

“Masterpiece Market” in Home Investment

March 20th, 2012

“The fishermen know that the sea is dangerous and the storm terrible, but they have never found those dangers sufficient reason for remaining ashore.” 

Vincent van Gogh, Dutch painter (March 30, 1853 – July 29, 1890)

http://www.vangoghgallery.com/

Artists take risks. They pursue their vision, often without financial security, facing long odds while stewing in their own self-doubt. When the world tells them “it’s not safe,” they listen to their own voice despite “prevailing wisdom.” They have a vision and they pursue it.

Occasionally, if they’re very lucky, they get to look back on their life and see the path that lead them to create a masterpiece. At the time, the path wasn’t easy, yet in retrospect, it looks very much like the only possible path they could take.

I think in twenty years or even ten years, we’re going to hear the collective sound of people kicking themselves because they did not buy a home this year. As their teenage sons and daughters graduate and enter the future job market and begin searching for their first home, they’ll turn to their parents and say, “Seriously? You’re telling me when I was in middle school, you could get a 30-year fixed for under 5%?”

Too many remain terrified by the last great storm in the housing market. They stand now on the shores of incredible opportunity, but can’t shake the vision of all those values sinking into oblivion.

Think about the future. Who might need a home? Is there an opportunity to “be the bank” when the time comes? The descendants of those savvy collectors who bough a Van Gogh painting for mere dollars in 1885 are surely grateful for their grandparents’ eyes today, aren’t they?

Yes, there is uncertainty, but this is the calmest water you’re ever going to see. Set sail now and buy a home. Those that do will certainly be rewarded. As for the masterpiece? It will be the satisfaction of looking back and realizing they bought at just the right time.

There’s certainly no risk to exploring the opportunity. I’d love the opportunity to sit down with you and plot a possible course to the best investment you could make. Contact me today at: clbunch@mindspring.com or 678-775-2605.

Common Agent Questions on Completing a HUD Contract

March 15th, 2012

Sometimes I’ve heard agents complain that selling HUD Homes is just so hard and they don’t understand how to work through the process.  Well, we’re going to create a few videos to assist agents through the HUD process.  Once you understand it, it’s easy.  It’s just a little different from your normal process for selling residential real estate.  Today we’ll address two common mistakes on the sales contract:  HUD-9548:

1)     Line 1 must contain the legal name or the name as it will go on the loan and title.  Make sure you check the spelling by reviewing a copy of the buyer’s driver’s license or social security card.  The name on line one must match the name on line two and line 13 where the signature is located.  You may have an additional name on line two if you are adding someone on title who is not the actual buyer and if that person is not on line one then they do not sign the contract. 

2)    All of your numbers must match your winning bid so make sure you print a copy of your bid information as well as your bid confirmation.  You can print a great deal of your sales contract on-line which will have a lot of the bid information automatically populated into the contract and this will help you to do it correctly.  No one likes to get notified that they’ve done their contract incorrectly when it gets reviewed by the asset manager.  You can get the automatic population into the sales contract from one of the asset manager’s websites such as HUDHomeStore.com or HomeTelosFirst.com or HUDPemco.com

 Remember, you must get the complete sales package into the asset manager’s office within 48 hours of winning your bid.  As always, please contact us at 678-775-2605 if you have additional questions.

Bidding Timelines for HUD Properties

March 12th, 2012

Do you get confused on HUD bidding timelines?

Bidding Timelines on HUD Properties

One of HUD’s goals is to increase the number of owner occupants on their properties so they designed the bidding timelines to give a little more preference to potential buyers who are going to live in the property for at least 12 months after closing.

On properties that are Insured or Insured with Escrow, there is a 10 day period where bids from owner occupants may be submitted by a real estate agent on HUDHOmeStore.com.  Then, on Day 11 the asset management company reviews any bids that have come in and if one of those bids nets HUD enough money, then they accept that bid.  If there is no acceptable bid, then they continue to receive bids and they review them every 24 hours from day 11 through day 30 of the property being on the market.  As soon as they receive an acceptable bid, then they will notify that real estate agent and begin the process of getting to closing so you can move into your new home.  If on day 31, there is still no acceptable bid from an owner occupant, then HUD opens up the bidding to investors.  At that point, HUD will sell to anyone – owner occupants or investors.  Remember, we are talking about Insured or Insured with Escrow properties.

Also, sometimes properties are call Uninsured – for a variety of reasons, but mostly because they need more work than $5,000 to make them really habitable.  You may have the ability to get work done on the house after closing if you are purchasing with cash or you may want to use an FHA 203(k) loan to finance the repairs if you are going to live in it.  With the Uninsured properties, there is a 5 day sealed bid process for owner occupants and then the bidding is opened up to investors on Day 6 if there was not an acceptable bid from an owner occupant.  HUD is committed to selling their properties and I hope this helps you understand more about the bidding timelines.  HUDHomeStore.com is a good resource for more information or you can feel free to contact us as well.

Visit www.bunchteam.com to learn more or send us an email asking for information at admin.cbunch@kw.com .  We are HUD-registered selling agents and are located in the Atlanta, Georgia area.

 

Ever Heard of Buying a Home at 50% off?

March 8th, 2012

Did you know that full time teachers, police officers, fire-fighters and emergency medical service responders may qualify for a Good Neighbor Next Door Program which allows a qualified participant to purchase the HUD-owned home at 50% of the listed price?  The GNND program offered by HUD is applicable in certain areas that are considered distressed urban communities.

The teacher, police officer, fire-fighter or emergency medical services responder must serve the area where the home is located.  Here are a few general rules:

  • Eligible participants may receive up to 50% discount
  • Home must be within a HUD-Designated revitalization area
  • Eligibility period is during the “Lottery” bidding period on www.HUDHomeStore.com before it’s available to the general public or owner occupants
  • Must “Bid” 100% of the list price and then up to 50% will be deducted pending verification of buyer eligibility
  • Cannot own other residential real estate (and neither can your spouse)
  • May use FHA financing and the $100 down payment program
  • May finance the cost of reasonable and customary closing costs
  • Buyer must qualify for the list price (not just the discounted amount)
  • Silent Second Mortgage will be Recorded
  • Silent Second Mortgage will be Reduced by 1/36th on the Last Day of each month of occupancy
  • HUD will not pay commission or closing costs, as these items must be paid by the buyer.  These items may be financed if the buyer uses FHA financing.

If you are an agent, then pay special attention to working out how you get paid with your buyer.  Commission will not show on the sales contract.  Use a special addendum.  All forms and certification documents are found on www.Hometelosfirst.com , www.OforiREO.com and other asset management websites.

More details are available at http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm  Also, visit www.bunchteam.com to learn more or send us an email asking for information at admin.cbunch@kw.com .  We are HUD-registered selling agents and are located in the Atlanta, Georgia area.

$100 Down Payment Program for HUD Properties

March 7th, 2012

Did you know you can purchase a HUD property with only $100 down? It’s true. Click here to view a short view now on our YouTube channel.

Introduction to HUD Homes

March 6th, 2012

Welcome to our new blog and our new video series on HUD properties. We are starting off with a very basic introduction of what a HUD home is and who can buy a HUD home. Click here to view this short video now on our YouTube channel.