April 17th, 2010
Is it likely that I can get a HUD repossessed home at a discount?
I’m in CA, and am looking at possibilities of a small investment in real estate with a reasonably quick return if I buy, rehab and flip.
Does anyone know if price reductions are made by HUD after their repossessed single family properties have been sitting unoccupied for a while? And if they discount, if I bid at 85% of the newly discounted price, am I likely to get a hearing?
Related posts:
- How much does attorneys charge during a home buying process ? I am a first time home buyer and have some quick questions: Home price around $220K 1) How much do attorneys charge me as a buyer in the home...
- Do you think this is too quick, or should we proceed more slowly? Hi! We own an income property – 2 units, and we live in one of the units. We want to buy ourselves a single family home. In order to...
- real estate property web-based database? hi am NOT familiar with programming so kindly excuse my poor I.T. language….. Am looking for a real estate database software. A property web-based database, (1)for my self to...
- How can I make a quick cash offer to a property that is due to be repossessed? There is a house next door that is due to be repossessed and I want it ASAP, is there anyway to go about buying it. What steps do I...
- purchasing a new home and may have to Short Sale my existing property.can they foreclose on my new home? with the current real estate market, my wife and I want to move back home, but our current house is worth less than what we owe on it. i...
Filed under: Buy Property
If you are looking for a HUD home, you might as well stop. If you have the $$$ to invest you will not qualify for a HUD home. They are turned back over to HUD who in turn resells them to another low income family. If you are looking to live, you need to do the paperwork and find out how much you qualify for.
It all depends on how long they’ve tried selling it and what kind of property it is. It never hurts to try. Offer and maybe they’ll accept. Right now there are so many foreclosures around the nation, they might just be ready to get rid of it. Don’t listen to the other guy. They don’t care if you’re an investor or a live in home buyer as long as it’s been on the market longer than 10 days which are reserved for live in homeowners only. Find a realtor and make an offer.
I can tell you from my experience here in Missouri, but you need to check it out with your local HUD agent. Certainly HUD have some constraints on certain properties that may be a part of their special programs, homes in revitalisation areas for example. Although HUD states they will give preference to owner/occupier bids, they accept bids from investors on single family homes, I don’t know where your other correspondent is coming from.
With so many REO on the market in some areas, I have seen HUD make a price reduction, even after 3 weeks, and seen many bids accepted at 92%. And recently I have seen acceptance at 85% of a new, reduced list price for one property. Your local HUD agent is the best one to tell you what the parameters are in your region. They will have a minimum acceptable price preset.
Remember though that if an owner/occupier comes in with an offer below yours but above the minimum acceptable then that bid gets precedence.