Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Mary asks…

How can I get a list of either HUD homes for sale or forclousers?

I recently came into some money and want to invest in realestate. I’ve heard about buying homes from the goverment that people have not paid thier taxes on and and now are up for a tax lien sale. How do I get a list of these homes?

Your Questions About Foreclosures

The Expert answers:

Http://www.hud.gov/

Your Questions About Foreclosures

Richard asks…

why do Realtor not like to bid on HUD homes?

I am looking to buy an investment property. Every time I find a hud home that I like, I have to look for hud approved realtor. I have contacted few of them and told them how much I want to bid on a specific property, they never do. Instead, they start going on and on about all other good properties are out there on sale. Do they get commision on hud home sale? why do they get hud approved if they are not interested in bidding on them for people.

Your Questions About Foreclosures

The Expert answers:

Sorry my post is so long but buying and selling houses is my day job so I have lots to say!

Yes, realtors get a comission on HUD home sales. However, in my area, the HUD homes we were looking at paid an extremely low comission… A maximum of 5% in comission (which in my price range of under $25,000 meant less than the customary comission floor of $1,500, plus, sometimes that 5% is split between two agents!) So YES, comission may be one factor… But in your area and price range, 5% may be customary, but in my area prices are so low 5% isn’t enough to make it worth most agent’s time.

I am a little concerned about the agents that you have spoken to. When I talk to my agent about a HUD house, even if the 5% comission only comes out to $500 (some of the houses I buy are pretty cheap) she still says, “wow, that’s a great price, let’s go take a look at it” (but upon inspection I discovered in that price range they need to be condemned LOL) But nevertheless, she does not steer me away from HUD homes. So first off, find a better agent!!!

In my area HUD homes are supposed to have matching keys to the lock boxes, but half the time the keys don’t work or the keys in the boxes are wrong!! A realtor can waste a lot of time arranging a showing with you and driving an hour away to show you this house but the keys don’t work! This can be frustrating to agents. In my area HUD homes have bad reputations for keys not working, which means a lot of wasted time for agents and bidders.

Also, remember that these are foreclosures, which means that the houses are not in the best of shape. They may be in OK condition, but they do not have fresh paint, new carpets, new appliances, etc. That you may found in similar non-HUD homes. Someone was in such financial trouble that they lost their house, so they probably didn’t have a lot of money (or reason) to spend on home maintenance. But since this is an investment property, plan on spending a month or two fixing up the property in order to attract the best tenant possible. (budget in that extra month or two to fix up the property!!! You want good tenants!!!)

I have a question though… You said you contacted a few HUD approved realtors that refuse to bid on a specific property… Have you seen the properties you are interested in bidding on? If you have not seen the properties that you want to bid on it is likely that your realtor(s) do not take you seriously. I would arrange for a showing of the house before you ask them to make a bid. Also, show them in person your pre-approval letter from a bank (www.lendingtree.com and www.aimloan.com are two of my favorites) I disagree with the earlier person that posted that you need to pay cash for HUD properties… The main time where cash is the most important is when you are buying at an auction or when the buyer needs to closer ASAP. HUD will want what is called “proof of funds” but that can take the form of a pre-approval letter from a bank. (try to get the pre-approval letter for HIGHER than your bid amount so that HUD knows you aren’t stretching to qualify and will follow through on the purchase)

In my opinion HUD homes are well worth the hassle of bidding, non-working keys, etc!!! 20% can save you tens of thousands of dollars!!! I would recommend that you arrange for a showing with an agent, and ask them to show you homes in the same neighborhood in the same price range. You’re making a big purchase, you might as well spend a few hours looking at similar houses.

Then, after you’ve seen several houses, including the HUD house(s) you are interested in, the agent will know you are serious. At that point, the agent wants to make ANY comission off you, and if you want to place a bid on the HUD house, the agent will place the bid.

P.S. – the process for placing bids on HUD homes is different than for regular homes. It is possible that the agents you spoke with just didn’t want to learn how to go through the government HUD process.

Your Questions About Foreclosures

James asks…

Buying HUD homes shortly after foreclosure?

I looked at a housethat was empty for 8 months and it’s only been on the market for 30 days. I soon realized that it was a HUD home when my realtor didn’t have much information on it. I am wondering if these homes are able to be purchased in less time of being deserted from the original rather than sitting empty rotting to say.

Your Questions About Foreclosures

The Expert answers:

Look into that

Your Questions About Foreclosures

William asks…

How do you find HUD homes?

I’ve gone to hud.gov and followed the links. The only houses listed are out in the middle of no where. Are there any real sites setup like realtor.com that lists HUD homes for sale?

Your Questions About Foreclosures

The Expert answers:

There may not be any in the city you were looking in. You were looking in the correct data base.

Your Questions About Foreclosures

Sandy asks…

How do you go about applying for Hud homes/apartments in Texas?

I do not make enough money to buy a house or really rent an apartment and still be able to pay a car payment. I know there are programs for people like me, I just do not know how to find and apply for them. I work full-time and just would like to pay my bills and still go to school-any help?

Your Questions About Foreclosures

The Expert answers:

Contact Lonnie Stapp at www.this-old-pro.com. He puts out a list of HUD homes in the Houston area every week. He’s a great old dude and will gladely answer any questions you might have. He has a great reference web site where you can find all kinds of information. If you don’t see what you’re looking for then drop him a line. He will definately write you back and lead you in the right direction. I bought my patio home off a list that came to my e-mail once a week. It only cost $1,000 down when I put in the bid and another $500 at closing (3% of selling price) with no closing costs (they were rolled into the loan). Also, I went through Countrywide for my mortgage. There are all kinds of programs out there to help low income people get into homes.

Good Luck!!!

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures