All Forum Posts by: John T.

here it generally takes 60-90 days after the auction to get possession of the property.  In my head i think pre-auction =preforeclosure but the process hasn't completed.   I guess i was unclear if the rules were the same for both periods regarding contacting an owner

I am currently tossing around trying to purchase properties through foreclosure auctions at the county.  I am looking for opinions and feedback regarding connecting with homeowner POST auction as they still will live in the residence shortly afterwards.  I am well aware of the risks involved in buying at an auction and also of the idea of connecting with people before their house is auctioned.  

My general idea was if I win a house at auction, to go to the residence (still have previous homeowners there), try to connect with them in what is a kinda awkward situation and see if me paying them say 1000 dollars and paying for professional movers to move them in exchange for them not intentionally damaging the place makes sense.  Is this a bad idea?  I don't think it's unethical cause it would help them.  I'm more worried if I'm doing anything illegal or barking up the wrong tree.

i prefer just painting them often.   Some great photos out there that show a great transformation with minimal resources 

i think the risk is if you bid too low you can rebid but the owner occupant period will pas and now you'll have investors as competition.  So alot of guisance out there about bidding during investor period below asking price but I haven't been able to find any about bidding under asking price during the owner occupant theory 

Right but exclusively during the owner occupant period does HUD accept below asking or would they just wait til the open bid period I think Alex is asking here. I'm not sure how "internal guidelines" are found but here's some info regarding the hud process:

HUD will review all offers received from owner/occupant bidders during the priority period. If HUD does not receive an offer meeting internal guidelines the listing opens up for bidding to any qualified buyer, including owner occupants and investors. Bid Deadline is DAILY at midnight.

PRICE REDUCTIONS – Owner Occupants First for 5 Days

Sometimes a property does not sell during the open listing period. After several weeks HUD will reduce the price on this property and publish the re-listed property on a Friday. The first 5 days following a price reduction the property is available to owner occupants only. This shortened priority period ends the following Tuesday at midnight. From time to time HUD listings experience several consecutive price reductions.

OPEN PRICE REDUCTIONS – All Bidders DAILY

Should the property still not sell during the shortened priority period, it then becomes available for bidding to all qualified buyers again. Deadline for bidding is DAILY at midnight.

RE-LISTINGS – Owner Occupants First for 5 Days

Occasionally a property that was already in contract falls out of contract. In that case HUD will offer the property for sale again and re-post the listing. The price may be the same as before or reduced. A re-listed property is available for owner occupants only during the first 5 days. These bidding deadlines fall on a TUESDAY at midnight.

Open RE-LISTINGS – All Bidders DAILY

If the property does not sell during the priority period for owner occupants, the listing will open up to all bidders with a daily deadline at midnight.

While I realize buyer doesn't have complete control, do they have any control to speed along the process of a VA loan? Aside from that is that really the only concern with VA loans? I've got more info that not only is the seller going to be moving here in 45 days, but his GF is pregnant and they are planning a wedding. So it's definitely in his best interest to make it happen by April 17th (proposed closing date)

one big concern i also have is going to much above asking and running into appraisal issues with lenders.  Im def towards the high end in terms of price per square foot.  Is this a valid concern?

so part of my concern is the guy needs to find a place in 45 days so im not sure if he wants to wait out weekend. Flip side property has alot of interest and maybe this just ist the buyer.   Part of me wants to counter with an increase above listing maybe making me responsible for 30% vs 100% of the costs and say take it or im going to ride out the weekend where i already have 6 showings scheduled and its only Wednesday and put pressure back on him.  I didnt realize the pitfalls of va loan but i would assume he would be highly motivated to make sure he has a place to go when he moves here from across the country.  Not sure how much of that he controls though

makes sense i dont want to short myself but also dont want things to take longer