Posted by steve on April 23, 2007 at 12:03:12:
depends what state.
in Florida, only applies to owner/occupants
but they do pay they on the right deals, and some times the fix/repair is much cheaper than the escrow amount so you can profit.
good luck. many HUD properties are previous HUD properties and if use fha/va/gov money will probably become HUD properties again.
HUD Repair Escrow - Posted by Joe McDermott
Posted by Joe McDermott on April 23, 2007 at 11:04:04:
I’m looking at a HUD property and the listing info includes a “Repaired Escrow Amount” followed by a dollar amount. Anybody know what this is and how it effects the sale of the property? Thanks
Re: HUD Repair Escrow - Posted by Dave T
Posted by Dave T on April 24, 2007 at 22:30:37:
As steve has already said, repair escrows can only be claimed by an owner-occupant bidder.
The repair escrow is the amount HUD feels is needed to make necessary repairs to the property to insure an FHA loan.
HUD does not really pay the buyer the repair escrow, but instead allows the buyer to add the repair escrow to his mortgage amount. I don’t know if this amount is actually held in escrow until repairs are completed and inspected.