I’ve been following a particular property through the foreclosure process since Sept '10. It started off with me attempting a short sale purchase, but that fell through and the bank foreclosed on it. I then followed it to the courthouse steps wherein the bank bought it back. Shortly thereafter they turned it over to HUD. I’ve been waiting on it since October to finally show up which it did the other day. I contacted my Realtor and we placed a fast bid for the list price of $30,000
I’m guestimating the NET to HUD on the following will be (please correct if I’m off base):
List price: 30,000.00
Closing costs (est 3%) 900.00
3% Broker commision: 900.00
3% Agent commission: 900.00
Repair Escrow: 1100.00 NET to HUD: 22,600.00
Since I want the house for myself as a genuine owner occupier residence, I bid the full list price as it’s a good price and leaves me with good equity after rehab should I ever sell.
Question: Is there something more I can do insure I’m the successful bidder?
Here’s the only thing I can see going wrong after immediately offering full list price…
If one or two other people bid full price, they might get greedy and figure they put it out there too low and end up raising the price.
If you get it under contract, be prepared for filling out tons of addendums. You may even have to sign the same forms more than once. HUD can be pretty ridiculous to deal with.
Just wanted to provide an update. I was the successful bidder (perhaps the only bidder) on this rather unique property. I got it for the 30k price. Given I wanted it for myself, it was worth it. I bid as an owner occupier.
It’s a round house that I’m going to renovate as my future home. My plan is to gut (which I started on yesterday), insulate, re-sheetrock, and otherwise update. I’ve been perusing it for about 8months starting with the normal realty transaction, through foreclosure and finally through the HUD auction. A long, frustrating, but ultimately rewarding venture!
Awesome Bill, Congratulations!! It’s great to see success stories, especially ones that require patience and persistence. I also love that you bought the home that you are going to live in right. You will have solid equity when most buy at retail. Good stuff!
I could not agree more. I bought the house I live in now using the same skills I use in my investment houses. I could have afforded the house anyway but I ended up buying a 5,000 sqft house for a little bit more than what I sold my 3,000 sqft house for.
Bill in Texas,
Your Texas Roundhouse looks awesome! Now I understand why you were stuck on getting just that house. I would have wanted it, too.
Anybody who hasn’t looked at the pictures, go back to bldfw’s last post.
Just curious–you had to meet with the HOA? Are there other roundhouses in a complex there?
Is the architect famous? Do you know who built it? There can be real cachet in having a “name” house, and some buyers like the prestige factor.
I hope you do the interior and furnishings to reflect the era of the house. Are there are furnished drawings from when it was built? It looks like it calls for modern or 50’s or 60’s decor. That can be fun to put together, and those prices aren’t too high except for in California coastal regions.
Good luck, and let us keep seeing your pictures.
Uh, maybe the lilac kitchen should go…?!
Thanks! Ya, I was captivated by the unique ‘round’ nature of the house so I stuck with it till I got it. Not sure what I’d have done if I didn’t get it! :biggrin
The HOA by-laws allow for parking an RV on resident lots, but it specifically prohibits “living” in one. Since this was going to be a full gut and renovation job making living onsite not possible, and since I just transferred there and needed a place to live while doing the work, I contacted the HOA president in advance about obtaining a waiver of the by-laws to permit my living in mine for the duration. The HOA board was very accommodating giving me an initial six months waiver with a verbal agreement to an extension if I needed it. I was advised that as HOA’s go, they were very easy going; “not like other HOA’s that get carried away and make life miserable for everyone”. I was sure glad to hear that! It saved me from having to rent space at a local RV park.
Mine is the only round house in the subdivision. I’ve heard there are maybe one or two more situated in other areas around the lake though I don’t know where as of yet. I don’t know anything about the architect but it would be interesting to learn more. I’ve conducted many a search for “round houses” on the internet but there’s not much out there. I’m sure there’s more out there in the world but not much posted about them.
As to furnishing the place, I recently had an very freeing epiphany one day when I just happened to walk through a furniture store on a whim. I had been contemplating (fretting) about how I was going to furnish the place with my furniture given the unconventional pie shaped aspects of the bedrooms and the overall downsized nature of the house compared to my current house (about 400 sq ft less). It suddenly occurred to me that I didn’t have to bring anything with me, that I could simply get rid of everything I had and start completely new. So that’s what I’m going to do! When the house is finished and move in ready, I’m going to have an estate sale at my current home and ditch everything of note. Then I can furnish the Round House with new pieces appropriate to the size and design of the house.
If you’re interested in following along, it’s all in the blog.
Still following your blog. Take lots of pictures, you might have a book there.
I just ordered a book from a girl who renovated her garden shed for $300. I would definitely order a book about renovating a Texas round house!
As to getting rid of your old furniture, that is the best idea. Scale is EVERYTHING, well, almost. Mid-century modern furniture gobbles up way less visual space than today’s overstuffed couch potato furniture. Perhaps you can get advice from a designer who would like the “Roundhouse” feather in his/her cap.
I am enjoying your blogs and posts.
Furnishedowner
Thanks For the good words. I’ve not forgotten to blog but find it difficult via iPhone so have to catch up when I’m back at home. I brought a real PC here but forgot the power source for the monitor. Will get that this week. At least I can draft my entries and the post them when I have an Internet connection that can handle the pics.
I’ll be posting again prob Sunday or Monday. Stay tuned!