Posted by d.moren on April 03, 2000 at 20:09:48:
It’s my understanding that you have a few more options with an owner occupy purchase than an “all bidders” or investment purchase.
Once you put up the money for an investment offer you’ll have a hard time getting it back, for whatevr reason
dm
Hud Do or Die? - Posted by Michael
Posted by Michael on April 02, 2000 at 15:20:18:
I just left a Realtors office after attempting to put an offer in on a HUD property. I agreed to bid 2000 over minimum bid. The Realtor said he needed a bank check for $1,000.00 to be included with offer, fine with me. I asked for a contingency pending a property inspection and favorable financing. He told me there is no contingency on HUD homes? As a matter of fact he told me I would lose my $1,000.00 if I was unable to get financing? This dose not seem right to me. Suppose a property inspection revealed the property needed major repairs or worse? The property is located in the Pennsylvania area right outside philly. Is this guy jerking me or what?
Re: Hud Do or Die? - Posted by rita_mo
Posted by rita_mo on April 03, 2000 at 11:40:00:
Micheal, for complete information on HUD’s you can view and download the Hud handbook from website www.hud.gov also so you can view all contracts.
Cordially
rita
HUD doesn’t allow home inspections after the bid… - Posted by David
Posted by David on April 02, 2000 at 19:25:25:
what they do allow is home inspections before bidding. There have been cases where the prospective bidder turns on all utilities does all the inspections and turms off the utilities all at their cost PRIOR to bidding.
One of the kickers and there are a few is that HUD is selling as is where is exceptfor house already prequalified for FHA mortgages, which is hardley any of their repos.
We have been doing HUD/VA repos in Pa for over 20 years. They don’t always make it easy for the buyer, and the competition is tough so that many houses are overbid. We’ve overbid houses $30K over asking price and didn’t get it!
hth
David
Re: Hud Do or Die? - Posted by CarolFL
Posted by CarolFL on April 02, 2000 at 16:00:12:
Let’s assume that all of the regions work the same (we are in FL).
Deposit is $500 for bids under $50,000 ; $1000 for those over.
As to contingencies, unless it goes in as a cash offer, it, like other contracts, has a place to check that you are getting financing.
This requires a prequalification letter from a lender (not a pre approval), to send to HUD with the contract within 48 hrs after bid acceptance.
Last spring, we got a refund from HUD because a termite inspection indicated bug damage, but the lender would not lend until and unless we could assess the amount of damage and escrow for repairs. To do that, HUD would have had to authorize our pulling out a large chunk of dry wall from the kitchen area - at least …
So… despite our qualification, the lender would not make the loan, wrote us a letter to that effect, and we got our $1000 back from HUD.
A lot of their contracts dO NOT close, so they are trying to cut back on that.
Hope this helps with your questions.
Carol
Re: Hud Do or Die? - Posted by chris
Posted by chris on April 02, 2000 at 15:35:23:
Michael-
The guidelines are posted over at the HUD site www.hud.gov. I don’t remember where at the site-they have a lot of stuff to weed through until you get to the meat.
-Chris
That is False. - Posted by Bill K- FL
Posted by Bill K- FL on April 03, 2000 at 08:52:59:
HUD requires all accepted bidders to sign a inspection disclosure form and allows the successful bidder to make inspections within a certain time frame after their offer has been accepted. This has been the case since last November.