technically people think hud homes are bad when in fact they are not.
A hud home is simply a Foreclosed FHA home. Someone originally had to be approved for an FHA loan on that house (before it got forclosed)... typically FHA loans are not "easy" to get and respectable credit-worthy people only can get them (although not as stringent as Fannie Mae/Freddie Mac).
I think its just like the market for any other house that could have been foreclosed and is up for sale by a bank or reality company and u dont even know about it ever have being foreclosed before. Just now with HUD HOMES there is a small dark cloud that people think the home is faulty for some reason.
In any case. The Housing and Urban Development Department by LAW - HAVE to disclose EVERYTHING wrong with the property, where as typical sellers dont and they rely on you getting inspections/etc on the property yourself.
GL
-murph
A hud home is simply a Foreclosed FHA home. Someone originally had to be approved for an FHA loan on that house (before it got forclosed)... typically FHA loans are not "easy" to get and respectable credit-worthy people only can get them (although not as stringent as Fannie Mae/Freddie Mac).
I think its just like the market for any other house that could have been foreclosed and is up for sale by a bank or reality company and u dont even know about it ever have being foreclosed before. Just now with HUD HOMES there is a small dark cloud that people think the home is faulty for some reason.
In any case. The Housing and Urban Development Department by LAW - HAVE to disclose EVERYTHING wrong with the property, where as typical sellers dont and they rely on you getting inspections/etc on the property yourself.
GL
-murph
I bought my first condo via a HUD sale in 1999. I think there were a few additional docs to sign, but nothing too difficult. I was shown the listing by the realtor I originaly contacted to see another property. I believe everything is sold "as-is", but they generally give you an escrow amount to somewhat cover the repairs. If you like the property you submit a bid which HUD will either accept or not accept(of course there could be multiple bidders for the property). I was lucky, mine only needed paint, carpet, and fixtures; turned out to be a great investment.
:drink:
:drink:
The first home we bought was a HUD home. The most important thing to remember is you're buying the home "as is". The cosmetic things are easy to spot. I'm not very handy so I didn't really know what to look for in the things that really count. The plumbing, electrical, ac, heat, structural and other home repairs that can be very expensive. That's why I hired a home inspector and it was some of the best money I ever spent. The only real problem he found was a cracked heat exchanger that had to be replaced before the gas company would even turn the gas on. I got some estimates and it would be about $600 if I got the house.
Other than that, the guy who did the very thorough inspection said the house was in pretty good shape. We put in a bid and got the house. It needed a lot of cleaning and a lot of painting. We did that and a landscaper I knew liked to give his guys some side work on Sundays. I had them rip out the front yard and they laid down some sod that was cut that morning. That was $500. I figure we spent another $1200 on paint, cleaning stuff and other things. So for around $2300 we had a pretty nice four bedroom house. People in the neighborhood were really pleased because that was kind of the eyesore house of the street.
Just always remember this. It's about location. You can change the house but you really can't do much to change the neighborhood. I think where to choose to live is even more important than what you choose to live in.
Other than that, the guy who did the very thorough inspection said the house was in pretty good shape. We put in a bid and got the house. It needed a lot of cleaning and a lot of painting. We did that and a landscaper I knew liked to give his guys some side work on Sundays. I had them rip out the front yard and they laid down some sod that was cut that morning. That was $500. I figure we spent another $1200 on paint, cleaning stuff and other things. So for around $2300 we had a pretty nice four bedroom house. People in the neighborhood were really pleased because that was kind of the eyesore house of the street.
Just always remember this. It's about location. You can change the house but you really can't do much to change the neighborhood. I think where to choose to live is even more important than what you choose to live in.
The house I have right now was with FHA loan. So I guess I have a hud home lol. Anyone that buys mt house will be getting a new house. I have done everything possible to my house. Not one room has not been redone. The next owners of this house will be lucky.
There is a big difference with buying a house with a FHA loan or buying a forclosed home. A forclosed home you are buying as is. When I bought it I had to get an inspection from HUD.
There is a big difference with buying a house with a FHA loan or buying a forclosed home. A forclosed home you are buying as is. When I bought it I had to get an inspection from HUD.
its only a HUD home if it gets FORECLOSED.
so rightside unless ur house goes into forecloser, the person who buys it will not be getting a HUD home.
also anyone can get a FHA loan on a house that wasn't a HUD home in the past. Its just another form of financing that is backed through the government like FHA / VA / Fannie Mae/ Freddie Mac..etc
so rightside unless ur house goes into forecloser, the person who buys it will not be getting a HUD home.
also anyone can get a FHA loan on a house that wasn't a HUD home in the past. Its just another form of financing that is backed through the government like FHA / VA / Fannie Mae/ Freddie Mac..etc
A Short sale is when the bank allows a homeowner to sell their home (at market value) for less than what they owe on it.. If you owe 300k on a mortgage or note, and sell the house for 150k, the bank will eat that 150k loss.. The bank has the option to come after you for that loss for up to 6 yrs though, unless the bank signs a waiver releasing you from that liability.. States like California are non-recourse/deficiency states where you cannot be sued for the difference..
