Are HUD Homes Are To Get?
I had a real estate agent tell me that HUD homes are difficult for investors to get. Is this true? Any tips on how an investor can get these homes over an owner occupied purchaser?
Thanks for the information![ Edited by davidwburns on Date 12/08/2003 ]
Your real estate agent is either an idiot or you are in a hot area. There is a five day period after a FHA forclosure occurs in which only people intending to be owner occupants can bid. After that it is open to investors. My area is not hot. So there are plenty of homes that can be obtained by investors. In a hot area. I can see none of the homes making it past the 5 day period. Just go to www.hud.org and start looking.
In reference to hud homes,and va for that matter,they are not the deals they used to be. in most cases they are priced at market value. an investor has to be very careful about how they bid on the property or they can get burned.
The agent told me that HUD would rather give the house to someone that was actually going to live in it. True or not?
I have found them easy to get in my market. The only problem is they are rarely less than market value. Buying at market value three years ago would've been great after all the appreciation in Central CA. I don't think I am going to touch anything that I can't get for 80% of fair market for a while. Stats for my area showed median home sales have fallen 7% in the last two months.[ Edited by JohnBergman on Date 12/08/2003 ]
for HUDS, they offer it to two buyers. Owner occupant, and investor. They will sell the property to an owner occupant before they will an investor. Think of the investor as a last chance type thing. If an Investor does get it, they must hold on to it for atleast 90 days, because of FHA regulations. A HUD realtor must submit a bid for you also. The opportunity is there, so good luck.
Eric
[addsig]
Why would an investor have to hold the propert for 90 days unless they are using FHA funds to buy the property?
Once an investor buys the property with a conventional loan, it is no longer a HUD home. So the investor can do what he/she wants.
HOWEVER, if the investor intends to rehab and resell, he/she couldn't sell the property to a buyer that was using FHA funds unless the house was seasoned.
Dee
I have read the term before but what is "seasoned"?
Seasoned means as stated above that the investor owns the property 90 days. Seasoned real estate notes are notes that have been paid on for a while usually 6 months or so, showing a track record or pay history.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
David,
I am in Greensboro and have purchased a couple HUD homes in our Area. The agent you are working with is not telling you the truth. The feed back you have received here is correct. 5 days for Owner occupants, and then they are open to investors. Bids are opened daily and if your bid is acceptable, you can buy it and do whatever you want to with it. I can be reached at the email in my profile if you would like some help in purchasing one.
Jim