What's Going On Here?????

[Christopher Vargas]

I recently found a HUD home withing my price range, unfortunately that home had a higher bid which was accepted. I dont remember if this was still within the exclusive owner occupant period or not. But, now a week later, this home has popped back up on Zillow.com, not HudHomeStore, as an (Undisclosed Address) 'For Sale' for more than $5k more than the original HUD listing. After finding the original post on Zillow, it states that the home was sold, in clear letters. I called the listing agent on Zillow, and he says that this is now a HUD auction and that the price I see is the starting bid. I called the Century 21 to confirm the agents employment, and they verified him for me. Although the price is still very attractive, my intuition is telling me that there are some red flags to be concerned about.

1. Will HUD allow a wholesaler to assign a contract?

2. Will HUD allow a double closing?

3. If this was purchased in the owner occupant period by an investor, how will that affect me if I purchase the same house second-hand?

4. If this has gone back to HUD as an auction, will it repopulate on the HudHomeStore?

If this is a legitimate deal, I will JUMP ALL OVER IT!!! Any and all help is greatly appreciated. Thanks in advance.

[Greg H.]

It sounds like someone is trying to wholesale a HUD that they have an accepted contract on. To answer your questions :

1. You cannot assign a HUD

2. You can do a double close on a HUD and its not whether HUD allows it as they have nothing to do with it.

3.  It would not affect you as it is not a deed restrictions but could get the seller in trouble.  You can go to the bid results section at Hudhomestore and see if it was an owner occupant.  Not all properties show up there but most do

4.  The "auction" is BS.  If it were to come back available it would be in Hudhomestore

You can always call the original HUD listing agent and ask them. Call the "new" agent and ask him about. My guess is after you inform him of what you know, that property will disappear from Zillow stat