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What happened to all the HUD houses in Arkansas?

By
Real Estate Agent with RE/MAX Advantage

 

What happened to all the HUD houses for sale?

 

Anyone who is shopping for a HUD home has noticed that the listings for Arkansas properties on hudhomestore.com have all but disappeared. It happened suddenly, around mid-November, much to the dismay of bargain hunters throughout White County and around the state.

Here’s what seems to be going on.

A bankruptcy case filed in the Jonesboro area has caused a temporary suspension of many HUD transactions in the state of Arkansas. According to a story published Nov. 14 on The City Wire (www.thecitywire.com), a Chapter 13 bankruptcy judge in the Eastern District/Jonesboro Division found that a lender who was not authorized to do business in the state failed to comply with the Arkansas’s non-judicial foreclosure laws when taking back properties there. That Sept. 29 court decision has caused title companies in Jonesboro and elsewhere to balk at issuing title insurance until they can be assured that foreclosed homes were taken in compliance with state law. Evidently, only Arkansas foreclosures are affected.  A search for Arkansas listings on hudhomestore pulls up one but a search for Alabama houses pulls up 292 and California pulls up 329. (11/22/2011)

Without title insurance, loans can’t be written, and HUD has taken the properties off the market until the legal issues can be resolved. That’s why home shoppers who have been watching HUD properties on the MLS listings and at www.HUDHomestore can no longer find the listings. The good news is, that HUD house you’ve been watching hasn’t been sold to someone else. But the bad news is, you can’t buy it, either. It is too soon to know how the court ruling will affect properties that have already been foreclosed, or when the HUD transactions in Arkansas will be allowed to resume. HUD has briefed all its real estate brokers and will continue to keep us informed as the situation progresses. We don’t know when the properties will be re-listed for sale, but we hope it’s very soon.

 

 

 

Barbara Duncan is an associate broker and registered HUD broker for RE/MAX Advantage. For any questions about buying HUD homes, contact her at 501-278-6817 or e-mail her at Barbara@barbarasduncan.com

 

 

 

Comments (6)

Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Hi Barbara. You have performed the role surely of Sherlock Holmes on this one with the mystery of the disappearing HUD homes. I hope people that have been searching for them find this post and here eventually they will be back on the market in your area. Happy Thanksgiving Barbara.

Nov 22, 2011 09:43 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

Gary, I just checked Texas and you all have 907 HUD houses today!  Now where is the fairness in that?  Happy Thanksgiving to you!

Nov 22, 2011 12:07 PM
Anonymous
Debbie Wantulok

WOW!  That is news worthy...I guess our kids just did buy their house...it was a foreclosure...They only need it for 4 years...I'm sure you don't make as much off of foreclosures but it would keep the buy and sell flow going...I think that would be the opposite of stimulating the economy...well, you should be able to take a few days off to be with the familywith no worries...HAPPY THANKSGIVING! 

Nov 22, 2011 03:21 PM
#3
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR

Happy Thanksgiving to your wonderful family, too, Debbie!  Those are handsome guys that you are surrounded by. 

Nov 23, 2011 01:36 AM
Anonymous
Debbie Wantulok

Thanks Ms. B...I'm kinda partial...stop by...they are all doing the cooking...Hope you and your family have an enjoyable day...looks like the weather is going to cooperate.  HAPPY THANKSGIVING to the SEARCY SLEUTHS!

Nov 23, 2011 04:23 PM
#5
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

yes they look so nice but Foreclosures are such tough on to stomach.

Jan 17, 2012 04:00 PM