HUD homes in Colorado. Back in July 2010, Vance Morris, Director of single-family asset management at the Department of Housing and Urban Development (HUD) discussed the recent move by HUD to divide the recent M&M III (Marketing and Management) contracts among field asset services firms and asset management companies in the edition of In This Corner.
How did this effect HUD homes in Colorado? Michelson Conner and Boul (MCB) had solely managed the asset contract in Colorado for the last 5 years. As of September, the M&M is now being managed by three asset managers: Hometelos LP out of Dallas, Mat Martin out of Pennsylvania, PEMCO out of Hawaii.
Each asset manager will receive every third HUD Home in Colorado that is released. The idea, per Vance Morris, was to create more opportunities and or competition.
"With multiple contractors serving in the same area, the competition among them will increase productivity and ensure that should one contractor fail, there is someone readily available to take physical possession of properties. We are also centralizing our bid site so that real estate professionals and the public only have one location to search for properties."
The transition of properties to the new asset managers has been accelerated for HUD homes in Colorado. Effective November 27, 2010 MCB will no longer be listing any HUD properties. Although the transition has had its road bumps, all three asset managers are working through the individual nuances.
HUD homes in Colorado can be found on one centralized bid site for both real estate professionals and buyers: (www.hudhomestore.com). Although the site maintains properties and offers an easy search tool, it is not a good source of information for processes and procedures. The lack of information has caused confusion in the real estate market with both Realtors and Buyers.
Additionally, without a local asset manager for HUD homes in Colorado and physical address in Colorado, contracts are now sent out of state. With the timeline restraints and working with out of state asset managers, this could cause more properties to fall out of contract and strain the buying process.
I would strongly recommend that buyers interview their Realtor to make sure they feel comfortable with the new processes. For all HUD homes in Colorado and the Good Neighbor Next Door Program, please go to www.househunterscolorado.com or www.hudhomestore.com.
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