HUD - Posted by Desmond Tx

Posted by David Krulac on June 19, 2000 at 06:15:03:

they seldom go below 80 to 85% of their price. Don’t let their policies dictate your price. Pay only as much as YOU are comfortable with. They don’t follow logic and are not price motivated. In our area they have one for EIGHT YEARS and haven’t sold it, all the while the property is decaying away.
David Krulac

HUD - Posted by Desmond Tx

Posted by Desmond Tx on June 19, 2000 at 02:30:07:

I know of a house owned by hud that has been sitting for about a year now. I was thinking about writing them an offer/bid but I am fairly new to this. Heres the proerty the way I see it. The list price on it is 40000. Houses in the area have been selling for around the 60’s three homes recently sold on the same street went for 67000, 63500, 69900. I don’t feel that the house that hud owns is worth that much and here is why all the windows have been broken out, Rotten wood deck from where an above ground pool used to sit, lowwer half of garage door is broken, last the house has been tagged. OK other than that house the neighborhood is relatively nice with a lot of new homes going up in the area. The new homes are less than two streets down. My question is would writing hud an offer of half of their list price be ok? This would be my first real estate deal I have already spoken to a mortgage broker about getting a hard money loan his terms were fairly easy to understand. 18% interest and he would only give me a loan with a 65 ltv ratio. So any help would be appreciated about my offer. I plan to let a real estate agent help me but I wasn’t sure if they would look at me as if I am crazy.

Re: HUD - Posted by Paul

Posted by Paul on June 22, 2000 at 22:27:50:

UP Here in VA,
we have HUD and have gotten “most of our bids accepted” by using this guideline,actually there’s two:

  1. wait for the first come cycle- huds funny they’ll try to get a lot out of a house way too much intially however there’s the waiting cycle - people new to RE submitting offers that are far too much (possibly), then after about 3weeks hud offers it first come if noone bidded or bidded what they (hud) wanted.
  2. when we bid, after about 3months -hud becomes semi smart they will lower the offer by about 3k drop in price from previous. We multiply what they are asking by .92 and again most of our bids are accepted.
    Hud doesn’t always look at the area or they make mistakes -they just look at the cost to them. I spotted a beautiful home (picture taken by HUD) listing for 88k assessed at 115K no exterior problems/ description of house mentioned replace carpet so we anxiously waited (for first come) after us forgetting it- I know how stupid can you be but… anyway when we remembered it, we drove out to check it out… the pictures were correct, address correct but what the picture didn’t show was… the 3 crack houses next to the property 200 feet away and the railroad tracks behind the house 500 feet away. My point is HUD investing is great but wait for your price, Good luck

Re: HUD - Posted by CarolFLUT

Posted by CarolFLUT on June 19, 2000 at 07:49:18:

Find a broker who SPECIALIZES in HUD properties. They will know your local ropes. Around here it serves no purpose to bid before it comes up in the list… in fact, there is nothing to bid on until there is a case number. Maybe in your area it’s different. Try to see what they have to say about your state.
good luck!