HUD PROPERTY OFFER ACCEPTED!!

[Ashlee Fazio]

Recently put in an offer on a HUD home site unseen. After a slight negotiation we won the bid! We plan to go out to visit the property and get an estimate on repairs before finalizing the paperwork for our offer just in case something else comes up. Is there anything else we should be sure to do before moving forward with this property!? I appreciate your feedback!!! Btw, we got the house for $47000 with ARV around $180,000 and just assumed repairs would be $60,000 to see if the numbers would work. Even if repairs are $80,000 the numbers still work.

[Harry Metzinger]

Congratulations @Ashlee Fazio! That is exciting. It is a smart move to visit the property and prepare a detailed repair estimate before submitting the paperwork. Note that the contract needs to be returned to Sage Acquisitions (HUD's asset manager) within 2 business days, and your earnest money deposit (made in certified funds) needs to be delivered to the listing agent (but payable to your title company) within 2 business days as well. The contract paperwork requires signatures from your real estate agent, your real estate agent's broker, and a representative from your title company, so be sure to move quickly to obtain those signatures if the numbers work.

If the repair estimate exceeds numbers that would work for you, you can walk away with no penalty if you have not submitted the earnest money deposit yet.

Looking ahead, prepare yourself that dealing w/ HUD/Sage can be an absolute nightmare. I am working on closing on my first HUD property right now. My closing has been postponed on three separate occasions. Stay on top of your real estate agent and have your real estate agent stay on top of your title company. The biggest issue is Sage's poor customer service and lack of responsiveness, so your people need to be persistent in getting your contract to closing.

Good luck!  Keep us posted!