Rarely does dealing with the government make you money.  But in the case of HUD-owned properties, you can get a deal on a home now, get a low downpayment and make money. 

HUD properties convey all kinds of negative images – this is NOT today’s HUD home.  HUD properties today can be found in any area, any price, new houses, old houses, some need work and some practically move-in ready.  With the amount of foreclosures out there, HUD has reluctantly been forced into the real estate business, just like banks and others.  But unlike banks, they are not for profit, which positions them well to have some of the best deals out there.  Here is what you need to know about buying a HUD foreclosure home.

1.  You can get a real deal.  You do need to bid on the property, but most times, HUD foreclosure homes are priced below appraisal and market value.  Again, HUD is not for profit.  They can do deep discounts.  Plus, they will come down off list price and list the homes very agressively.

2.  You have to follow HUD procedures and contracts.  It is their way, but it is clearly provided and understood. Once you understand their ways, it is pretty smooth.

3.  You will find out if you get the property right away - within a day or two.  That beats all the banks who take sometimes weeks to get an answer.  You can wait 2-3 weeks to get a contract signed by HUD and another few weeks to close.  But typically from bid to close is less than 60 days.  And you can close even earlier.   

4.  IT IS EASIER to get a loan on HUD properties, because most are already FHA insured.  And if they need some work and you need money above the sale price to fix it up, if the property is designated, you can get a 203k FHA loan for above the sale price to fix up the home on most HUD homes.  Also, some HUD homes can be purchased for $100 down or 3-3.5% down.

5.  You can buy the home as a investment or as an owner-occupant.  There are certain times when you can bid on the property.  HUD gives owner-occupants the first 30 days before they let investors in the game.

6.  You can inspect the home - if you are an owner occupant – after the contract and still get your money back.  Plus, HUD gives you all kinds of reports, appraisals, property conditions to review.  These are not a substitute for your own personal inspection and viewing of the home, but it gives a little more information.  If you are an investor, you can inspect the property, but you can not get your earnest back if you back out of the deal.

7.  HUD is an “as is” purchase.  No matter what you find at an inspection or viewing, they will not fix anything, negotiate or reduce the price.  You can merely cancel the contract if you are an owner occupant if you do so within the timeframe the contract indicates. 

8.  There are extra charges that you will normally not incur in another sale transaction.   You will have to absorb all the title fees (but HUD gets huge discounts on this.  And as with many foreclosures, you need to pay for village inspections.  If you want to get an inspection, you will need to pay HUD’s field manager to dewinterize and rewinterize the property.

9.  HUD properties are always title clear.  HUD and their agents are very good about paying all the past bills, assessments, etc.  You never get stuck with anything you don’t know about. 

10.  You must use a HUD certified buying agent.  There is no cost to you for that as HUD pays commissions.  I would recommend that you use one that has some experience buying HUD properties.  HUD contracts and rules are a little tricky, but once you have mastered them, it is no problem . 

There are goods and bads in buying a HUD foreclosure home, but buying a HUD home can be a very lucrative investment and/or get you a great home in record time with the lowest down payment available.  I have had a few customers successfully buy HUD homes for personal or investment and of the homes we saw, they were by far the best deal.

If you are interested in investing in or buying a HUD home, call 888-788-9544 for more information.

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Options During Foreclosures Mini Guide !

List Price: $2.99

List Price: $2.99

Your Price: –

Essential: Options During Foreclosures Mini Guide !

Homeowners What You Need to Know About Foreclosures
Foreclosures When to Consult an Attorney
Homeowners Steps to Help You Avoid Foreclosure
Buying Foreclosures The Pros and Cons of REOs
Facing Foreclosure Where You Can Turn
Foreclosure Auctions How to Find and What to Expect
Foreclosure Can It Be Stopped
Foreclosure How and Why You Should Talk to Your Bank
Foreclosures and Moving What to Do
Foreclosures and Renters What Are Your Rights
Foreclosure Scams How To Avoid Them
Foreclosures How to Get Your Lender to Help
Foreclosures When to Accept Your Fate

Your Price: –

Legitimate question to ask these days in buying a foreclosed home. With all the illegal practices going on in the foreclosure process, lawsuits are predictable. When a purchaser of a foreclosure home tries to gain possession of that home, they can expect legal action to be taken against them in the form of a lawsuit, along with suing the loan trustee, loan servicers, and lending institution.

Those issues don’t even include spiteful damage to the property.

Filed under: Attorney, Foreclosure, Home, Mortgage Company, Real Estate, Washington DC Tagged: Christine Axsmith Esq., Foreclosure, Home, Investing

Can you imagine if your broker mentioned thinking about Las Vegas home foreclosures was most effective and most convenient way to find your brand-new home? Are you wondering about the condition of the local overall economy? Curious as to foreclosure estimates? Concerned with Nevada foreclosure income tax regulations? Wondering if these kind of houses were good for you? You need to be asking yourself all of such issues before you make the decision to take this path. Investing in short sale Las

Read more …

Builders Gearing Up To Compete With Foreclosures

More banks are investing thousands of dollars to fix up foreclosures in trying to spur sales and appeal to a broader buying pool. Banks have inherited plenty of foreclosed homes that have everything from water damage, mold, broken windows, and missing plumbing fixtures. But while banks used to be hesitant to invest much money in fixing up these homes, more real estate pros say that banks are heeding their suggestions for repairs and seeing the benefits of how a little investment can make these properties more sellable. As such, they are paying for new paint and carpet, refinishing damaged floors, replacing old windows, and repairing leaky roofs. They hope to extend the foreclosed homes’ appeal past traditional investors and professional rehabbers. For example, home buyer would have trouble securing a loan on homes that lenders deem “uninhabitable” because of needed repairs. The banks interest in fixing up these properties also can help the overall real estate market because the foreclosed properties can sell at a higher price. Real estate agents say they are making more suggestions to banks on how to spruce up the properties. First, they identify the target customer for a property. For example, if the home will likely appeal to owner-occupant, agents may recommend fixes such as paint to $25,000 kitchen remodel. Source: Chicago Tribune

Meanwhile, there is plenty of reason for them to change their strategies..

New home sales fell 16.9% in February, to the lowest level since the government began keeping records in 1963, as the reeling housing market failed to generate any momentum. Sales fell to an annual rate of 250,000 from the revised 301,000 in January, according to the Census Bureau’s monthly report released Wednesday. The rate was down a whopping 28% from the 347,000 of February 2010. “We’ve been running at a very low level,” said John Canally, an economist with LPL Financial, a Boston-based financial adviser. The release followed last month’s downbeat report on existing home sales, which fell 9.6% month-over-month. “New home sales are even more crucial to the nation’s economy,” said Canally “It’s the new home sales that actually drive economic activity and contribute to GDP.” New home builders hire construction workers and buy building materials from domestic sources, contributing much more to the economy than people just trading one existing home for another. Particularly bad winter weather this year probably added to market woes. Sales dropped precipitously in the Northeast and Midwest, which experienced some frigid and snowy days during the month. Sales, though, were down across the board, falling in all four regions. A better sign for the market was the number of new homes in inventory. That remained at 186,000 in February, a 40-year-plus low, according to Canally and only about a third of the number of new homes on the market during the peak months off 2006. Source: CNN/Money

When we examined Concord Foreclosure Homes to see how much cheaper they were than regular Concord homes sold in the same period, we discovered they were substantially cheaper to buy.

Looking at the neighboring city of Walnut Creek, we can find an even greater margin between Walnut Creek foreclosure homes and traditional Walnut Creek home sale prices.

Using the  same January 2010 to December 2010 period, and the same parameters of single family homes between 1000 and 2000 square feet in living space, we again find a good sampling of Walnut Creek homes to examine.

During this period, there were 149 traditional Owner occupant-to-Buyer transactions and 50 bank owned repo home foreclosure sales.  This is a far different ratio than the nearly 50% foreclosure home sales we found in Concord.

The traditional Walnut Creek home sales averaged $383/ sq. ft., while the Walnut Creek foreclosure homes that sold brought only $316/ sq. ft.

If we take the middle-sized home in this sample, that means a foreclosure home in Walnut Creek sold for nearly $100,000 less than the same sized Walnut Creek single family home that was not bank or short sale related.

Again, we must assume that in a bank to Buyer transaction the condition of the home is often much worse than a “normal” sale, and there are certainly disclosure differences between what a bank or corporate real estate owner must disclose and what an owner occupant seller must disclose (It should be noted, however, that a short sale seller has the same obligation to disclose as a traditional equity seller).

Still, a single family detached foreclosure home in Walnut Creek that needs only carpet, paint, and a little clean up can reap huge upside rewards over a “move in condition” Walnut Creek home!

Especially if you will be changing the carpet and paint in a year or two anyway!

There are several good testimonies about people purchasing foreclosed homes at really low prices. Websites and tv commercials claim that you can find foreclosures for nickels on the dollar. Sounds too good to be real? Well, it is!

Visit today for experienced friendly advice from your local Pagosa Springs Realty.

While it’s possible to get a great deal on a foreclosed home, it requires a lot of analysis as well as persistence. Most foreclosed houses sell for only slightly below market value, and those that sell for a smaller amount are quite few. Also please, consider that there are some risks you will incour when closing those deals.

Many foreclosures usually are not in excellent condition which is sometimes the reason that foreclosures sell off much more inexpensively. The past owners most likely went through a time of monetary trouble and that usually results in a badly maintained home. Is not really difficult to find out that in a few occasions, the house had been purposely damaged by the proprietor facing a foreclosure.

A not excellent spot is usually one more frequent cause behind a low priced foreclosure. Whether you’re planning to utilize the home as a residence or rent it out, position is critical. The main reason why deals like that fails are often due to home location itself, so please, consider this feature as one of the most important before closing the sale.

Don’t forget that you additionally have to conform to a number of legal stuff on purchasing a real estate foreclosure, dealing with that may cause you much more than a troubles. If the last owner still lives inside your home, he’ll have to deal with eviction. It is even possible that the lender may not have full ownership of the house, resulting in major legal woes. Additionally unsettled fees could be shifted to the new proprietor.

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Foreclosures sold at public sale present their own unique dangers. Prospective purchasers usually aren’t getting the opportunity to check the home available, so that they don’t have any clue of what condition it is in. The full purchase price is usually due in a matter of days, or even on the same day. Buying home foreclosures at public sale is a dangerous proposition for the purchaser and is also usually not a good idea for first time homebuyers. Experience is probably the number one attribute required to securely buy a foreclosure home, time and a good load of endurance will help you to find the perfect offers around. Of course, new homeowners are advised, there are pitfalls. There are lots of issues that may appear with them and a new property owner does not need to be subjected to the potential risks involved.

Chris Willhelm is the broker at Riverside Properties, 475 Lewis St, Ste 213, Pagosa Springs CO 81147. Visit now for expert friendly help from your local Pagosa Springs Realty. Click to learn about Pagosa Springs CO homes for sale

Purchasing foreclosed homes in desirable areas at below-market values can be a sound investment strategy. Appreciation on their original prices may be tax-free.  Buying foreclosed rental properties can provide positive cash flow, as well as valuable tax deductions. On the other hand, buying a foreclosure involves homework, patience, and a certain amount of luck. For those wishing to get a bargain house through the foreclosure process, it’s best to learn the basics.

Four Ways to Buy a Foreclosed Home

• A presale is when the prospective buyer negotiates with the current owner before the house is foreclosed upon. Presale discounts can be considerable, but communicating and reasoning with the owner isn’t always easy; they might have legal problems, lost their phone service or electricity, or greet you with suspicion, having already been hounded and threatened by creditors. And after time and energy have been invested, the deal can fall through if the owner comes up with the money to repay their debt, or for any number of unexpected reasons. With persistence, however, the seasoned real estate investor can profit from presales. To find out about presales, you can try one of the following avenues:
  • Ask your local county court how to search new notices of default.
  • Find out if the County Recorder has data available online.
  • Look in the “legal notices” section of the newspaper for properties that are coming up for sale at public auction. Take note of the address, the property owner’s name, the tax ID, and whatever other information is contained in the ad.
• A foreclosed home may be sold at a public auction, in which buyers can expect a discount of 10% to 25% of market value. Interested bidders are generally required to show proof of financing, and must have a minimum cash deposit before they are qualified to bid. It might be impossible to gain entry to inspect the interior, too, which makes this type of purchase risky. The local building department may have permit records that can clue you in to the building’s layout and appearance.
• A real estate-owned (REO) sale is a transaction where a foreclosed house is purchased directly from the bank. These properties typically wound up in the bank’s portfolio after failing to sell at auction. REO investments are relatively safe, as there are no tenants to evict or hidden liens and, unlike properties sold at public auction, buyers can usually receive a mortgage to pay for them. And purchasers might even get an unused house; the slow economy has left many builders at the end of their construction-loan periods without finding buyers for the homes, in which case the bank will foreclose on the brand new homes. Unfortunately, REOs are usually offered at near-market prices to recoup the costs of property taxes, maintenance and legal fees. To find REOs, try the following:
  • Check lenders’ websites, as they may have a list of their REOs, along with contact information for the appropriate real estate agent.
  • Call lenders and ask to speak to someone who handles their foreclosures.
  • Check newspapers.
• The Department of Housing and Urban Development has tens of thousands of HUD homes whose previous owners defaulted on federally issued loans. After a period during which local governments gain exclusive buying privileges, they become available to individual buyers who pledge to live in the property. After another 10 days, investors may bid on the property. It’s difficult to make a profit on these houses, as HUD releases them at near-market values.

Tips for Foreclosure Purchases

• Invest time in research and preparation. Those new to the field should spend some time learning the variables of foreclosure investing before making any purchases.
• Budget carefully to prepare for the unexpected. The house may require unforeseen repairs, such as a leaky roof or unstable deck. The price tag of the home itself is often just the first of a series of fees. What if you planned on rental cash flow to cover the mortgage, but you can’t find a tenant?
• Avoid buying a foreclosure sight-unseen. Try to see the house yourself before buying it, or hire someone to evaluate at it in your absence. Distant investors are buying up properties unseen in bulk, and they’re often unpleasantly surprised at how much they’ve been misled.
• Evaluate the neighborhood. If the foreclosure is rife with problems, but it’s in a desirable area with high property resale values, it may still be worth it to make a low offer. An area with several foreclosures or a high crime rate can undermine an otherwise good deal, however.
• Consider how long the house has been vacant. Building damage – and the costs required to make the house livable – generally increases with the time that has lapsed since the last tenant vacated. Pests are a particular issue in houses that have been empty for a long time, and plumbing defects and leaks increase in likelihood in such homes, as well.
• Examine the landscaping. Left unchecked, trees can send their roots into the foundation, and vines can creep into the windows.
• Has the house been professionally inspected by an InterNACHI inspector? Foreclosures can be notorious for damage suffered at the hands of past tenants, through both inadvertent and intentional vandalism and theft.