Just remember what HUD homes are:
No investor wanted it during pre-forclosure
No investor wanted it at the courthouse
The bank did not want it
No investor bought it from the bank
Now the Government is stuck with it
Plus it was sitting empty for a good 2 years with all the neighborhood brats vandalizing it.
Usually HUD homes are first sold in a closed bid arrangement. Usually the best offer submitted on the deadline wins. However they will first give priority to “owner-occupant”, if no “owner-occupant” bids, than it goes to the best “investor” bid. If no bids are placed, the home is just sits on the market until an offer comes in. That is how it was explained to me. I looked at a couple and figured in my area it was not the way to go.
I would go to the HUD site and get the list, its free, look at it to see if anything is to your interest. If so contact the realtor that is handling that home and take a look.
Most are absolute dumps, some are diamonds in the rough, but everyone and their dog is looking for those.
HUDs are very competitive in my area. Of course, we have a lot of investors trying to get deals, but it’s very tough as a non owner-occupant since most people bid 5k or so above what HUD is asking for the property.
I just put in 5 bids for some investors and we lost every one. One of the bidders offered 10k more net than we did even though we offered a net close to the bid HUD asked for.
It has been my experience that the bank never even tries to sell HUD foreclosures and they just go directly to HUD asap after the foreclosure. You are right on on the rest of your no one else wanted it.
Can you assign a HUD home to another investor. There are some pretty good HUD homes in my neighborhood. The neighborhood is good. It say on the window to call a local realtor. Can I get it under contract, then assign it to another investor???
I recently bid on a few homes that were newly listed on the HUD site. One was a 2002 2 story 4 bdrm 3 bth house for $107,500. I bid $108 and lost it to a bid of $113 I think it was. It seemed like a great deal, neighborhood comps were b/w $142- $149,000.
I think there are deals with HUD homes from what i have seen so far. i’m looking at 15 more this weekend, this time I plan on getting a bid.
They do give preference to owner occupants as waqs explained to me by my realtor, but investors can do multiple bids and win them if they are the highest bid on each home.
And I am also curious as to how to assign a HUD contract to another investor or if thats even posible.
I have bought several hud homes and have been very sucessful rehabing and reselling them. In my area owner occupant can bid first but if it stays on the market long enough you can bid as an investor. One of the houses I purchased for 112K and cleared about 70k after it was sold. It is a very competitive market. but well worth utilizing if you do your homework on every deal. Are some of them dogs, yes but most of them with new paint ,floor covering which are pretty standard investments in the foreclosure markets. They will move about as fast as the rest of homes in your area.
Heres the most beautiful thing about HUD homes. That 4 bdrm/3 bth 2002 2 story that I lost the bid, came up again and I was second in line to get it. The first buyer didn’t turn his/her paperwork in on time, they lost the house. so I was given the chance to pick up a house that will appraise for right around $150k for only $108k- beautiful deal.
HUD homes are something to defiantely look into. I found 2 more homes in the Ft worth area, I placed bids on them but withdrew once I found out about this other one. There is a lot of paperwork to do with them, they generally take a little longer to close, but they may very well be worth the wait.
Can you just get Hud home from a realtor instead of bidding on them? Could you flip a hud home? My realtor told me I need to put up 1k for earnest money. My crdit isnt good at all? Should i just give them 1k for earnest money then find a buyer to buy the contract from me? here is the deal
Need new carpet, paint, some yard work, and maybe a new gaage door.
Usually, in my area, the Hud homes are first put up for bid. The highest “Owner Occupied” bid will win. That is a person who is going to live in the home. If no Owner Occupied placed a bid, than the highest investor bid will win. If no one placed a bid, the home is listed on MLS.