Well, Im Not An Investor...
...but after reading through the forums I think you guys can give me advice. Ive been looking at a vacant house for some time now. I cant locate the owners. Anyways I finally found that it is in the process of being forclosed. HUD owns the home and the attorney said it was supposed to be listed this month...but wont be til Feb. because of title clearing issues. Im pre-qualified and I want this house...I mean, I really want it. Its a perfect starter home for my fiance and I. Is there anyway to make an offer before it gets listed? Or anyway to get our feet in the door? I know this area is full of investors, so I want to act on it quickly. Thanks in advance.
Dustin
It is not the question if you want it bad but how much do you want to pay to get it. Let your bid reflect how much you do, so if is meant to be yours it just might be. One idea though, ask the realtor who will put the bid for you to put zero commission then if you get the bid pay him for his help in cash on the side. I've seen people with higher bids lose deals because their realtor got greedy.
Good luck!
Dustin,When a HUD house is first listed you usually have to pay the listing price.Since you and your fiance plan to occupy the house it may be a good deal. I suggest before bidding that you get an appraisal and inspection www.done.If something is found wrong this may give you some negotiating room.
I second getting an inspection. Not only will it give you negotiating room, but might be an excuse to walk away. I know that you love it, but there are always more out there, and sometimes its hard to make that call. My wife and I were going through the same process, found a house that we loved and just had to have. Came all too close to buying it when finally our realtor of all people talked us out, and I'm glad she did. Looking back it would have been a money pit. Be careful not to get too emotially attached; especially with your first one as its easy to do. Good luck.
Others correct me if I'm wrong because I’m not as familiar with HUD homes, but if HUD already owns it then it's not in the process of being foreclosed. It HAS been foreclosed on and is in the control of HUD.
They way to find out what is really going on is to go to the county clerk and lookup the house by address. See who is on title. If the party in foreclosure is the legal owner then, you can try to buy it from them directly and maybe save some cash. Or you could deal with the bank directly.
But if HUD is in deed IN Control, then you have to wait for the bid to open up on the property.
[ Edited by scr2001 on Date 01/28/2004 ]
Thank you for your replies. The house is in the individuals names. Chase Manhattan has paid the property taxes for the last three years. HUD owned the home about 8 years ago. I was told that the bank is turning it over to HUD. A newer house four doors down sold as a forclosure at $49000. Ofcourse it appraised for $89000. The house I am interested in is in far worse shape than the nieghboring one, it also has smaller sq footage. You might not want to hear this but...2 years ago the husband died in the home. It was an accident/suicide. This is another reason I think I can get it cheap, but investors might not care of the history. Ive spoke to the neighbor several times. Im not usually an emotional person, but my fiance and I have been looking at this street for a few years now, also about a block away is her Grandparents who are ill, that we need to be close to. Thanks again