Well I have sold only bank owned property this year. I can sell all types including HUD homes.
Click here for agent with HUD Number in the Treasure Valley of Idaho
luding HUD homes. The cool thing about HUD homes is that they have a $100 downpayment progrom for FHA buyers. The buyer needs to put $1000 earnest money down but gets $900 back at closing. This is on of the almost zero down programs left. The bidding always starts with owner occupied bidding. The buyer has to sign a paper at closing that they intend to occupy the home for a year. Let me go through the HUD home process....
The first thing is that not everyone can sell a HUD home. The agent must have access to a HUD number.
First you get pre-approved for your loan- make sure your loan officer does FHA...
find an agent
pick your home...
There are 3 types of HUD homes
1) FHA insured- HUD does not believe any repairs are neccesary to qualify for an FHA loan.
2) FHA insured with escrow - Money (up to $5000) is put in escrow so the home complies with FHA standards.
3) FHA uninsured - I usually avoid these since there are more then $5000 worth of repairs.
Another nice thing about HUD homes is that they qualify for 203 loan, which allows for repairs.
In the Treasure Valley there are lots of bank owned property, including HUD homes....
In the Idaho the new listings come on the MLS Friday and Saturday. There is an open period until the following Sunday (9 days later) when the bids are due. You have to have your agent submit the bid before 12 midnight on Sunday. HUD puts everything on a spreadsheet (including commission and closing costs) and picks the highest net. This brings on strategy for HUD bids. It is a closed auction. Your agent (and so can the buyer) look at the history of HUD bids in the area. Keep in mind when you bid that you can only get the FHA loan amount of the HUD appraisal (which is free to one lender). The items in play are the price, the agents commission and closing costs. Your agent should be able to advise you but it is a little like playing poker. Your agent will need your social security number and your drivers liscene number to make the HUD bid.
Now we wait until Tuesday at 1 PM eastern time. Housing posts the results of the bid. The offer and the brokerage is what is posted. Hopefully your agent calls you and tells you that you have the bid. Now it is time for the agent to fill out all of the paper work and get your signatures and send it to HUD via one day delivery (in the treasure valley we use HMBI) in Washington state. When your agent gets the signed contract back it is time for you to give your agent a cashiers check made out to HUD or YOUR Name... That is also sent in. There are 15 days to do a home inspection.
Keep in mind HUD will not usually fix anything but it is still a good idea. The last bank owned property I sold was missing the plumbing pipes and the air conditioning unit. I got these for my client (not from HUD from Freddie Mac). You must understand that foreclosed properties often have some damage and it is good to know what you are buying. HUD gives you 42 days to close the deal. They allow one free extention (but you have to send money in anyway that is applied to your escrow) but it gets expensive if there is another extension ($350 every 2 weeks). HUD needs the lean docs about weeks before the expected closing. Your loan officer had better be on there toes or you pay the fees. Finally you get to closing day. That is like any other sale. Change your locks and enjoy your new home.
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