How to Acquire a HUD Owned House

[Michael Fundaro]

Hi All,

I found a lead that I'm thinking about wholesaling, and I don't know if it will be a good deal or not until I know what I can get it for... The property is foreclosed and HUD owned. I took a Rich Dad webinar a while ago on wholesaling bank owned foreclosures. They were talking about pulling the mortgage info prior to foreclosure, using an amortization chart to calculate the profit the bank made in interest during the ownership, and subtracting that profit from the list price to get your starting offer. That strategy applies when the property is bank owned, so my question is: could that apply to a HUD owned property?

In this situation, the owners bought the property in 2002, foreclosed in 2013. The assessors site says the bank purchased "in lieu of" foreclosure, and then it was sold again in 2014 to HUD.

Can you guys explain to me how HUD properties work? How can they be purchased? should I stay away? Stuff like that... Also if someone could shed some light on what "in lieu of" means foreclosure process? Does that just mean the bank bought it?

Thanks!!

[Wayne Brooks]

That has to be the absolute dumbest, most ignorant idea I've ever heard, even here. That alone should be enough condemnation of this course for anyone considering it. The interest collected during the loan has absolutely no bearing on what the bank will want for a property. Banks are trying to limit their loss, and want as much as possible for the property, so they want something close to current FMV. A DIL (deed in lieu) is where the borrower simply deeds the property back to the lender, instead (in lieu) of the bank having to foreclose. All HUD houses will be listed on Hudhomestore.com and hit your local MLS. HUD purchase contracts are non assignable. Unbelievable some of the crap some of these "seminars" are spouting....