Friends, Romans, Et.al. - Lend Me Your Brain...

Comments(6)

• 
  jorge1217th September, 2003

  First and foremost you will only be permitted to bid on the proepty if you intend to occupy it as your primary residence. During the first 10 day days of a HUD property's listing (count 10 days from the listing date) only owner occupants can bid. This means that you must intend to occupy the premises as your PRIMARY residence and claim homestead there. Offers are made by sealed bid which will be opened at one time. If an acceptable net bid is not received by the bid deadline, they will do a daily bid opening for the remainder of the 10 days. It sounds like the property is FHA insurable (meaning u can apply for FHA financing) and that approximately $1500 in estimated repairs will be allowed by HUD should u choose to claim it (I never do since the highest NET number is what is considered and any request for escrow money reduces your net). Also note that in most cases the listing price is the MINIMUM bid; many homes sell for much more than that.
  
  AFTER the 10 day period it becomes open to investors.
  
  Hope this answers ur questions.

• 
  MSecorsky7th September, 2003

  Yes... yes... hmm... that helps quite a bit... so initially investors are excluded from this by requiring owner-occupant?
  
  So a second prop on the listing has this:
  
  Deadline: Daily
  Bid Opening Daily- All purchasers
  As-is value $38,000
  Codes: Price reduced
  Note: Excessive repairs evidence of mold no remediation done
  
  Would I be correct in assuming then that this property is a fixer-upper that has gone beyond the 10 day window, that no one has placed an acceptible bid and that the list price of $34,200 would probably be accepted should someone offer it?
  
  Again, thank you for the brain loan...

• 
  SmileyFace7th September, 2003

  Yes, you are correct. You as an investor can place a bid through your real estate agent any day. But wait a minute, this sounds like there is extensitve mold damage!!! If you decide to buy it, I would offer a lot lower than what HUD is asking for. By the way, I live in Atlanta area, a lot of HUD homes are sold for $10,000 or even $20,000 l(sometimes more) less than HUD's asking prices. You can go to ebay real estate page, and go to government foreclosure page. Then you can search current HUD listings and bid results by state and city.

• 
  MSecorsky7th September, 2003

  Ah, so the list price isn't necessarily the bottom line then.
  
  Thank you for the insight, I'll certainly bother you all with more questions as they occur...

• 
  scranfil7th September, 2003

  I agree with smiley face regarding the bid. I just won a bid from HUD for $8000 less than what they were asking. My take on their asking price is that is approx. 8% higher than what they have to have for the property.
  
  scott

• 
  Dreamin7th September, 2003

  Advise
  go to http://www.hud.org
  
  go to brokers section
  
  get the how to book. Lots of info explains a lot. How to bid etc.....
  
  Also go to search/bid and locate the property more info on the listing.
  
  Go look at it personlly, the neighborhood market in the area etc...... All can be done in one morning.
  
  Mold evidence is hard to get insured here in TX don't know where you are. I personally steer clear of these unless I can buy it cash. You have to completely get rid of the mold which usually means completely guting the house & A/C system. Too much $ involved for me. Most of these end up in auction or some rehabber with lots of $$$ & time or contractors gets it really really cheap.
  
  I watch til mine to to $20 to $30 between the as is price and the list price. Or I bid at that difference and wait to see if it gets accepted. Bid again if it dont or watch it a while. HUDs dont always get snatched up quick so I have time to make sure it is one I can profit from.
  
  Be care and make sure it is a deal.
  
  [ Edited by Dreamin on Date 09/07/2003 ]