I bought about a dozen HUD houses, but was never able to get one at the auction. There were lots of bidders at the auction and I thought the prices exceeded market is some cases. I never did a simutaneous close but would presume they charge a fee. In my area freeze damage is a consideration as most Hud houses have been vacant for at least one winter. Even if winterized after HUD gain control that doesn’t mean that there wasn’t freeze damage before. Some of the best ones i got were about 50% of FMV. But the downside is that I bid on awhole lot to get the dozen I did get. I bid low and I bid often, when I get one its a good one, I don’t mess with marginals. I like outright sales, and only use L/o when I can’t get all cash.
David
Posted by Sharonda on December 17, 1999 at 13:59:19:
Would like some advice. I am looking into purchasing a HUD home and then re-selling. I have a few related questions. First- Has anyone ever dealt with HUD or purchased a HUD home? Second- These companies that offer to help you structure your note for a simultaneous closing do they traditionally charge a fee for that service also can anyone reccomend a specific company? Third- Could someone help me with the bidding process? I am going to be attending a few auctions and would appreciate any tips or secrets from those of you who have successfully done this before. Fourth- Can someone please explain L/O to me in plain English. Iwant to know how I can make a profit from a property that I own using this technique. I appreciate all the feedback. Thanking you in advance.
Simultaneous closing happen all the time. As there are two actual sales there are two closing costs and you as Buyer1 may have to pay part of each depending on what you can negotiate. Find a good real estate attorney or title company that does these closings on a regular basis and you will have it made. Tell the title company what you want to do and they will schedule both closings for the same day. You may not even have to attend. They will send you a check the next day.