Just HUD

Top 3 Cheap Cities for Seniors

2015-04-20T19:31:00.000-07:00

Top 10 Most Affordable Cities For Seniors

1. Daytona Beach, Florida.
2. Pocatello, Idaho
3. Bangor, Maine
4. Greenville, South Carolina
5. Grand Rapids, Michigan
6. South Bend, Indiana
7. Mill Creek, Pennsylvania
8. Louisville, Kentucky
9. Sherman, Texas10. Pueblo, Colorado

Affordable Cities and Cheap GovernmentHomes makes good $ense for Seniors.

Hud Homes Hit The Market

2013-04-21T16:16:00.001-07:00

There back.....I wasn't sure. HUD recently announce that hud home sales have increased.

I am speculating that this increase in hud home inventory is due to the resolution of title issues associated with robo signers and foreclosure fraud.

HUD properties, result from the FHA financing foreclosure process. The robust mortgage and real estate market is generating more FHA financed homes. As of February this year, national HUD Home inventory was just under 39,500 properties.

HUD homes, sold through sealed bid, are often appealing to investors and first time home buyers, because of their discounted selling price and efficient closing process. In certainly makes $ense compared to renting.

Please read around my blog, there are some great tips for bidding and buying Hud homes and foreclosures.

Hud Home Check List

2012-10-27T13:10:00.000-07:00

HUD Homes listed for sale are always vacant.
Don't hesitate to look around the house and look in the windows.
You will know within minutes if this house is right for you.

A quick little list to keep handy.

Address_________________

Write Down One Item Your Remember IE Big Tree in Front Yard, Barking Dog: _________________
e Poor_

___Square footage

___Number of bedrooms

___Number of baths

___Practicality of floorplan

___Interior walls condition

___Closet/storage space

___Basement

___Fireplace

___Cable TV

___Basement: dampness or odors

___Exterior appearance, condition

___Lawn/yard space

___Fence

___Patio or deck

___Garage

___Energy efficiency

___Screens, storm windows

___Roof: age and condition

___Gutters

___Parking

___Appearance/condition of nearby

___homes/businesses

___Traffic

___Noise Level

___Safety/Security

___Barking DogsTHE

___Police Reports_

___School Locations

___Quality of teachers

___Achievement test scores

___Busing distance: Good Average Poor_

___Supermarket

___Work Commute Time

___Shopping Access

___Child Care Access

Make Several copies of your list, more than likely you will be visiting several homes and after 2 or 3 houses they start blending together.

Feeling Left Out? Can't Buy a Foreclosed House?

2012-06-21T21:15:00.000-07:00

Low Down Payment With HUD Auctions

In most cases, first time buyers get screwed by the big boys with cash.

The average home buyer is not able to compete with all cash offers or 30% to 50% down payments. Housing Wire reported today, first time home buyers are loosing houses to cash buyers and bidders with large down payments.

No Worries

When you buy a HUD House. All bids are treated equally. You can win by $1 or $1,000. Hud homes, that are FHA Insured or in HUD Language IN generally do not go over asking price. Hud homes are apprasied by an FHA apprasier. This price determines, the amount FHA will insure on a home loan. This keeps the bidding reasonable and fair, and of course you can bid under the asking price.

In many cases, even if there are multiable bids, you can still win the bid with a smart bidding strategy. The winning bid is determined by highest net value. FHA will only loan on the orginal list price, any amount over must be paid with cash out of pocket. For example if a HUD house is first listed for $75,000 and the buyer is going to use a FHA loan, we know that the offer price will not be higher than $75,000. In some cases, buyers may prefer not to use an FHA loan and then they may offer a higher price. In my experience, bidders who bid way over asking price on a HUD house, will often times drop out, (buyers remorse) because they realized they paid too much, however if the buyers use a non-FHA loan, they are not restricted by the FHA apprasial of the orginal purchae price and may bid higher.

Winning Bid Example

Buyer A bids $75,001, Hud will pay up to 3% closing costs and will pay up to 3% in commissions.

Buyer needs the full 3% closing cost credit or $2,250 and the Hud Approved broker requires full commission of $2,250. (3% x $75,001) please remember, the commission paid to the Approved Broker representing the buyer is negotiable.

$75,001 Offer Price from Bidder A

$2,250 Closing Cost Credit from HUD

$2,250 Commission paid to Hud Approved Broker from HUD

$2,250 Commission paid to Broad Listing Agent (A fixed amount at 3% and not negotiable)

$68,251 Net Value to HUD. This is the value to determine winning bid.

Buyer B bids $74,500, Buyer B does not need full closing cost credit, and only asks for $2,000 and Buyer B’s broker agrees to take off $235 off the commission, for a flat $2,000 (3% x 74,500)

$74,500 Offer Price

$2,000 Closing Cost credit to buy from HUD

$2,000 Commission paid to Hud Appproved Broker from HUD

$ 2,235 Commission paid to Broad Listing Broker from HUD

$68,265 Net Value to HUD

Bidder B Wins by $14 even though Bidder A bid $501 higher. By taking less closing costs and through broker cooperation, a win-win relationship created a winning bid.

HUD Homes make $ense. The bidding is fair and with good strategy and an experienced HUD Approved Broker will help you win the bid without over bidding.

Top 3 Tips for a Winning Bid

It will take 3 to 4 offers to Win
Being in second place as back up gives you a great chance to win without over paying.
Track the Bid Results to give you an idea if bids are going over price or below price, just remember that the price posted is net to HUD not offer price.

FHA's Shadow Inventory

2012-06-08T16:25:00.003-07:00

FHA-Distressed Asset Stabilization Program established to deal with the flood of shadow inventory....

Secretary Shaun Donovan announced 707,000 severely distressed fha-mortgages have been processed to date. The highest number of foreclosures recorded . May 30, Core logic reported 64,000 new fha-mortgages were in foreclosure for the month of April. FHA disputes the April numbers.

20,000 Homes Being Sold to Investors

.... represents 3% of the HUD REO inventory In fact with this new report Real Estate Buyers can anticipate 59,000 fha-mortgaged back foreclosure hitting the market in the next the next 12 months. I am not clear when the flood gates open, but you want to stay connected to these indicators. 2012 Represents the lowest record of HUD REO Portfolio.

FHA REO Inventory Lowest Level Since 2009

...... stated, Acting FHA Commissioner Carol Galante “At the same time, the inventory of seriously delinquent loans is near an all time high. This provides further indication of the coming foreclosure dump, which I hope you are ready.

Private Investment Purchase Pools

.....will acquire through bulk pool sale at current market conditions, with the goal of bringing the loan out of default in three years. The investor/servicer must provide work out solutions with 50% of pool.

Start You Engines....

Seriously, now is a very good time to state implementing your real estate goals. It will be a fun and exciting game, stay connected to JustHud.

What is A HUD Home?

2012-06-08T12:00:00.003-07:00

Really? Home is Home....does it really matter who owns it? When we hear Hud Home or Bank Owned or VA Home, what does it really mean? 90% of the foreclosure hype on the internet is garbage. You know this, however, we want to pursue our burning desire to find the best house at the best price, no matter how confusing or frustrating it might be. I hope my blog can help, Please bookmark, we are planning out some amazing tools that will cut through the crap and lead you to some fun and meaningful tips, so you can own your own home before the market heats up.

Don't Worry About Being In a Hurry.

Prices are going to continue to drop, some say by 20%, As shadow inventory hits the market we will be having a lot of fun buying houses, I like Hud Houses. And btw, it does matter who owns the house.

Not in a big way, but in small ways. By learning the little known facts about HUD Homes you will be a successful home owner. This is why I started this blog, to give you a competitive edge and to support you to being in the right place at the right time with a winning bid that makes $ense. I believe anybody can own a home if you are committed to it. It doesn't matter if you are 18 or 75, have a discharged bankruptcy or foreclosure. With good information, a burning desire and happy thoughts, you will make it happen.

A HUD HOME is....

HUD = Housing and Urban Development; HOME = Single Family Residents and Muti-Family Units (under 4 units) that are sold to the owner occupants and investors through a sealed bidding process. These properties were originally purchased using a FHA insured loan. The property was foreclosed by the lending bank and then purchased by the government and transferred to Real Estate Asset Managers to represent the government in selling the property. Check out the list and drive by today.

Rent a Foreclosed Home

2012-06-06T15:13:00.000-07:00

No….I am not writing about renting your current house that is in foreclosure, I am happy to give you the run down on that, as I have heard owners staying in their home up to 3 years without rent. But..that’s not what this post is about. This is a blog about Buying HUD Homes, not living rent free or collecting rent from your foreclosed house.

Top 5 Benefits to Renting

1. Free Repairs, the landlord foots the bill.

2. Home prices keep falling Shillings (insert article) another 20% is anticipated.

3. Stuck with loud smelly neighbors and a barking dog.

4. Renting will always be cheaper than buying in higher end neighborhoods.

5. The freedom to move whenever you want

I fundamentally agree with all of them.

However, if you don’t buy a house, and your going to rent, guess what? The odds are the house you will be renting was a recent foreclosure.

If your going to Rent a Foreclosure Why not buy one?

1. You know you love home repair projects, even if you are all thumbs and it feels good to fix it yourself, watch your kids fix it and to be yelled at for not fixing it....well some people like it when their spouses yell at them.

2. Once home values start going up so will your rent. Do I need to say more?

3. If you own or rent, barking dogs and smelly neighbors suck. Since we can’t shoot the dog or hose down the smelly kids next door, Check Out Your Neighbors, know who they, this is a must for renters or owners.

4. If good schools or living in a high priced neighborhood is your primary goal and renting is the best option, there is no shame or loss in this decision. Do it, no guilt.

5. This Is My Home! No permission needed to smoke, have a dog, put up a playground or design your own private dungeon for the loud neighbors…sorry I just couldn’t help myself.

Just Buy Smart

Watch the value trends in the neighborhood. When you see a HUD home for sale. Pay attention to the list date. This gives you a good idea, how long the house has been on the market, this helps as you develop your bidding strategy, which I will write about in upcoming posts.

Try to get an idea of buying interest. High buying interest is good and bad. It’s good to know you are looking at a property others are interested in. It’s bad, because you have to pay more, because of the competition. However when you buy a hud home with an FHA loan, you will never have to pay more than the current appraised value.

As a general rule, you can bid lower than asking price. If the bid was not accepted, keep edging upward. The Asset Manager, will not counter back with a price, you just have to bid again the next day by 11:59pm that same day. If you are committed a buyer your HUD approved broker and are qualified for an FHA loan and have the $500-$1,000 deposit, your broker should be ok with submitting offers each day till the bid is awarded.

63,000 Hud Homes Hit The Market

2012-06-02T00:24:00.000-07:00

Are You Ready?

Lender Processing Services (LPS) reported yesterday that the monthly foreclosures starts on mortgages insured by FHA jumped 73%, to 63,129 for April. Pemco a California asset manager for HUD, announced Live BallRoom auctions have began, keeping up with the growing inventory, meanwhile, FHA, refutes the LPS numbers, stating FHA monthly foreclosure claims are around 19,000.

Yikes! I Just Want A Deal?

Buying a hud house at auction makes $ense, if you are renting, looking to downsize or helping you kids buy their first home. Exploring HUD Home inventory, will give you very reliable market data while building winning bid confidence.

Smart and Prudent Action

….. is needed to prepare for buying a HUD HOMEor any Foreclosed or REO Home. Once the market shows a strong buy signal, all the sidelines investors and first time buyers will be jumping in to the market hard. This means, everything moves faster with more offers and higher prices. Understanding government sealed bid auctions and public ballroom bidding will give you a competitive edge to buy at a good price.

3 Steps: To Winning A HUD HOME at Auction

1. Read How to Buy HUD Homes, know the difference between sealed bid auction and live ballroom auction. 2 Different strategies.

2. Search Hud Properties To Build Your Personal Confidence in pricing, bidding and neighborhood evaluation.

3. Practice Bidding, by using real contracts, HUD Buying worksheets and submitting practice bids to develop your winning strategies

5 Top Reasons I Love HUD HOMES

1. Bidding process is fair and bidding results are available with in 24 hours

2. Home Buying procedure is consistent with real deadlines.

3. I can buy property to flip or rent in all 50 states.

4. Save Money on closing costs (up to 3%), appraisals and inspections are completed by HUD

5. Low Down Payments, some states only $100 Down.

WoW! $100 Down Payments for HUD HOMES

2011-12-13T08:56:00.000-08:00

If you live in Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Wisconsin, Wyoming and Utah,

You can purchase a HUD home for $100 down payment. Go to $100 HUD Programs
for more info.

Arkansas Suspends HUD Home Sales

2011-12-12T16:54:00.000-08:00

We just learned that HUD homes in Arkansas will not be available for sale.

This halt of sales is do to properties not being able to convey with clear title.

If anyone has more info on this, please comment.

I suspect it is due to the MERS Mortgage Electronic Registry and the fraudulent use of robo signers. This is just my opinion.

Your HUD Broker Earns 3% Commission

2011-12-11T18:54:00.001-08:00

Commissions, for many first time buyer's has been confusing. HUD homes, are no exception. When an offer is submitted the maximum commission paid to the broker representing the buyer is 3%. The listing broker also makes 3%. The commission to the buyer's agent, is not fixed in stone. They may be willing to discount it a bit in order to assist in facilitating a winning bid. Just ask, it is up to the buyer's agent, if they are willing to do this. Some will some won't. Please note, it is negotiable. the listing side is a bit more tricky. These commissions in most states are fixed, and have not observed flexibility. The listing agent is also allowed to represent the buyer, in those cases the real estate broker can earn a 6% commission. This does create an unfair competitive advantage, to buyers using a non-listing broker. As the listing agent, has incentive to discount the buyer side of the commission. This is a new change in the HUD policy. A change many brokers disagreed with because of the bias. If you submit an offer on a HUD home you must use a HUD Approved Broker. This search feature will be available soon form this blog.

A tip for a winning bid on HUD HOME

2011-12-09T10:57:00.001-08:00

One of the many benefits to purchasing a HUD home, is that it is fair, no secret handshakes or pocket listings. Home buyers have an equal shot, based purely on price. Remember, investors can only bid after a property has been listed for 30 days. Owner occupants bid after 10 days. The winning bid, is calculated on net proceeds to HUD. This net value is after closing costs and broker commission. If you use an FHA loan, you can take up to 3% in closing costs. So, on a $200,000 offer, you can have a closing cost credit up to $6,000.
Instead of taking the full $6,000, you may want to adjust down by $50 to $5,550, this adjusts up the net to HUD up by $50. Thus giving yourself an edge when competing with the sealed bid. You can win a HUD sealed bid auction by $1.