Posted by Robert R. (Atl.) on January 17, 2000 at 09:37:44:
Thank you for your responses.
Any HUD foreclosure investors out there? - Posted by Robert R. (Atl.)
Posted by Robert R. (Atl.) on January 16, 2000 at 22:41:08:
I am looking to get into HUD foreclosures and would like to get some advice. To date, all of my experience has been with bank REO’s and FSBO’s. However, I beleive that even with HUD’s time constraints these can also be good deals. Can anyone share some of their experiences, as well as, creative ways of acquiring these properties? Thank you in advance for your time and consideration.
Robert R. (ATL.)
Re: Any HUD foreclosure investors out there? - Posted by David
Posted by David on January 17, 2000 at 08:45:20:
Here HUD is on their third management team since spring, that has not helped things. I’ve gotten about a dozen, but more recently there has been more consumers bidding and the competition is tougher. One house that they have had over a year has had only one price reduction and is still over priced. I would like to buy it but not at their price. I have gotten some bargains at half the price sold for three year earlier. I’m still looking for more but so are a lot of other people. Keep looking and buy only the ones that fix your criteria. Good Luck.
David
Re: Any HUD foreclosure investors out there? - Posted by phil fernandez
Posted by phil fernandez on January 17, 2000 at 08:17:08:
Robert,
I agree with Tim. In the past I’ve gotten two good deals with HUD’s. One at an auction and one that just slipped through the cracks. You are competing with consumers, and often uninformed consummers with HUD’s REO properties. These consumers often throw common sense out the window and over bid on the property, especially at the auctions.
I no longer waste my time with the HUDs.
Re: Any HUD foreclosure investors out there? - Posted by Tim (Atlanta)
Posted by Tim (Atlanta) on January 17, 2000 at 06:49:24:
I have been watching the HUD list for over 3 years now. Let me tell you, the deals on the HUD list in Atlanta are few and far between. In the three years I have been watching HUD, I have bid on 12 properties. I got one and was declined on the other 11. Most properties on the HUD list go for more than list price. HUD knows this, so they are not inclined to come off of their list price by much. The one property I did get was about 70% of appraised value. As for the HUD auctions, these are a joke in Atlanta. As I am sure you know, a property only goes to the HUD auction after it has sat on the HUD list for a long time. The auctions happen about once a year. At the last one I went to about a year ago, all of the properties went at 90% of list on average. That is way too much for me. The really stupid thing about that is if these people had bid when the property was on the list, they would have gotten a cheaper price.
As far as being creative selling these properties, HUD is not. You cannot assign a HUD contract, so flipping is out. You could do a double close. You could get hard money to buy the property. HUD will not provide financing for you, you have to go find it.
Don’t mean to discourage you, but I think that your time would be better spent looking for deals on REOs and FSBOs. I personally have done much better with those than with HUDs.