Purchased a HUD property....Everything went well....

My clients called me and said, they wanted a certain property that was abandoned and sitting. Who am I to argue...? I visited the property, saw that it was abandoned, vacant and in need of much repair....typical HUD property (I later find out)....

Since I don't have a special number which allows you to purchase and bid in the HUD system, I solicited a registered HUD agent for the area and we began the purchase procedures....They are not complex, but there is a lot of paperwork to perform. Everything can be done online which is a plus.....

When you are finished with it all, you get a confirmation number which verifies that your offer is in the system. Then, you monitor the web site to see if you got the property.

For the first 10 days, only owners who intend to occupy get to bid. After that, they open it to investors. As a bonus, they let you look up what other properties have gone for in your area. You find that a lot of the HUD properties go for more than they are listed. Becoming good at this produces good results.

If your offer is accepted, then you must get your earnest money into an escrow with a certain time frame. From there, escrow puts out updates to your file and a time-line to check-off with. If there are any changes to your file, you notified as well.

At one point in the procedure, they put a stop order on the file. Then, they lifted it. I just observed it all and couldn't even explain why it happened to my client. I chucked it up to a governmental hiccup. I assured my client that we are moving forward.

I had to email or fax my commission agreement to the escrow company 3 times before they notated it. It is not comforting to have trouble with a persons paycheck especially when dealing with a large entity. Your chance of clearing up problems can be time consuming. Staying on top of this is the best way to handle it

Finally, I get confirmation of escrow papers in, commission paperwork in, and wired monies are in....Now I wait for recording. I get that and....... it is a done deal. My clients took possession and are renovating and my commission check is in the mail.

It was a good experience and........ there is value in HUD homes for sale.