Your Questions About Foreclosures | foreclosureorder.com

Your Questions About Foreclosures

Your Questions About Foreclosures

Robert asks…

What’s the difference between REO properties and HUD owned homes?

What incentives do buyers get when buying REO properties? Is there a down side to buying REO’s? What’s the difference between buying an REO vs a Hud (repo) home?

Your Questions About Foreclosures

The Expert answers:

REO stands for real estate owned. It is a name that banks use for property that they own. They have normally repossessed it.

Hud also owns homes and they also normally get them thru repossession.

Neither of them are often in good shape. They are normally both difficult to do a good inspection because you have no history of disclosure on them. No one knows anything about them so they can’t disclose anything. They could have been a meth house or anything could have happened to them.

I would suggest to you that you should get a buyers agent and look at the REO’s the HUD’s and the “regular” inventory. In North Texas they are all in the MLS. Compare them all and decide for yourself which give you better value for the money. (you will likely be surprised).

Your Questions About Foreclosures

Richard asks…

How do you obtain a certificate of title on a HUD home you purchased?

We bought a foreclosed HUD home from HUD and someone is currently interested in buying it. Their bank wants the title but all we were given was the deed by HUD, Any ideas on how we obtain the title?

Your Questions About Foreclosures

The Expert answers:

I believe that they are asking for the document that the title company would have generated when your deed was searched for leins, etc. Contact your County Recorder of Deeds, usually located in the County courthouse. They should be able to help you. Also, on the original agreement of sale, your title company should be listed.

Your Questions About Foreclosures

Nancy asks…

We got our offer accepted on a hud home last week when do we start escrow?

We heard exactly a week ago that we got our offer accepted on a hud listing. We submitted all the papers they asked & we got an email that they received them but we have not heard anything since. How long does it usually take to start up escrow on a hud listing? Also we asked for a 45 day escrow & we already have our loan, Is there a good chance at closing early or should we expect the whole 45 days?

Your Questions About Foreclosures

The Expert answers:

You can close early of you want to. You should have opened escrow already, I am unclear why you are waiting. There is nothing to wait for.

Your Questions About Foreclosures

Charles asks…

What does it mean when a house is considered a HUD house?

What is the criteria for a house to be called a HUD house? Is it because someone didnt pay their taxes or what?

Your Questions About Foreclosures

The Expert answers:

HUD is an agency of the US government called Housing and Urban Development. When a mortgage is guaranteed by the government (such as FHA) and it is foreclosed, the government reimburses the lender for its loss (if any) and then the government becomes the owner of the foreclosed property.

The specific government agency that most likely ends up owning such property is HUD, thus most government guaranteed mortgages that are foreclosed, then are offered for resale back to the public become known as HUD Repos.

HUD repos are not always the best deal, the sale is “as is” so if there are any serious preexisting conditions they are 100% the buyers problem.

Whereas in a private sale, the Seller is usually liable for any undisclosed defects.

For this reason HUD’s are usually riskier and not necessarily priced any cheaper for the risk.

Your Questions About Foreclosures

Carol asks…

How long will it take to HUD to reconcile the lead-based paint on the exterior of my house?

I had my own LBP inspection done and it tested positive. As I understand it, HUD will bring a contractor out to fix it (on their dime I think.) How long will this take? I have two weeks between closing on the house and when my lease is up.

Your Questions About Foreclosures

The Expert answers:

The US requires you to disclose this when you sell or rent out your house. HUD will not help you fix your privately owned property.

They do have a certification that repair people have to get before they can work on your painted areas- but you have to pay any cost.

If you are buying a house that HUD owns and you want them to re-mediate the lead paint problem- it better be in the contract. I would not close on the purchase until they have completed this.

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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