Gov't acquired home for sale... any ideas??? - Posted by Jim-WI

Posted by Irwin on March 21, 1999 at 12:35:19:

This sounds like either a VA or FHA owned property, which the broker has advertised, hoping to find a buyer who will let him put in the bid for them. You have to bid on VAs and FHAs through brokers. If the broker’s buyer is the successful bidder, he can make up to a 6% commmission.
This sounds like it’s a VA because financing is being offered. VA sells on contract with 3% down. The interest rates are also low. However, they won’t entertain a low ball bid, nor will they grant any options.
If it’s an FHA, there are two stages of the sale. In the first stage, the property is offered only to owner occupants. You have to agree to live in the property for at least a year. No flips possible. In the second stage, assuming in doesn’t sell to an owner occupant, it is open to investors. You can bid anything you wish, but, depending on where you are, there can be stiff competition. It’s a big guessing game. HUD doesn’t finance these, so you have 60 days to arrange financing and close.
The broker can fill you in on details. ANY BROKER CAN submit the bid for you. You don’t have to use the one who ran the ad.

Gov’t acquired home for sale… any ideas??? - Posted by Jim-WI

Posted by Jim-WI on March 20, 1999 at 21:58:44:

I have been doing lease options for awhile now and am looking to expand into other areas of CRE. I’m interested in flipping homes, land trusts, and no money down deals but do not have the experience to do a deal. I’m hoping that I can get some advice/help from this newsgroup.

In particular, here’s a property I’m wondering if you could provide some insight to. The ad reads as follows: “Gov’t acquired home. Nice 3BR home, 58x160 lot, 2 car garage! $70,000! Bids due NOW! Special financing available w/low interest rate & low down payment!”

The house is offered through a realtor.

Houses in the neighborhood have sold for around $78k-$82k.

I thought about getting an option on the property or even bidding a low ball offer $50k-$55k and then flipping. I’m hoping that you all can provide some insight to broaden my investing tool box.

Thank you!