All Forum Posts by: Jonaye Barnum

Hi all,

I'm finally closing on my first home, a HUD owner occupant SFH next week, but my agent is telling me that they won't give me the keys to the property after closing. I will have to rekey the property.

Is this normal being that it's a HUD home? Or is the listing agent representing HUD just being difficult?

My agent is also telling me that I should do my final walk through basically 5 days before closing so the listing agent can "get her sign and lock box". Why the rush?? I'd prefer to take the usual route and do it 24-48hrs before closing. Would just like your thoughts.

My bid was recently accepted for a HUD home. The starting bid was priced at $95,000, and I offered $127,500. The house is 4bd, 1.5 bath. It assesses on the city site at $123,200.

The reason I bid so high is because I have been outbid before, and the market in my area is very volatile. It's difficult to find a decent home in my price range, especially when I intend to rent the house out in the near future to begin building my investment portfolio. The house is in decent shape, no major issues noted (until inspection of course). I am comfortable with the decision because I am using an FHA repair escrow, so many of the issues recognized by the appraiser will be covered in the repair escrow.

The contract states that I must make up the difference in cash if the bid amount offered is higher than the appraised amount. I believe that the house will appraise for around my accepted offer of $127,500. However, in the off chance that it is much lower, I will not be able to afford that, along with closing costs and down payment all in cash.

Have you experienced anything of this nature and how did you resolve it? I believe I should be able to get out of the contract if it turns out to be too much out of my pocket due to finances.

Is there possibly even a way to finance the difference I would owe, or even roll it into my mortgage? Thank you for the help!

@Gus Kazek hi, were you able to purchase the HUD home? I'm in a similar situation.

@Tanvir Sattar I agree, I think an offer is worth inputting, just not too low.

I'm interested in a SFH that's been on the market for a while that is being sold as is. The Commissioner of Accounts in the city it's in is requiring the due diligence, including inspection, to be done prior to submitting an offer.

I've already taken a look at the house &, other than needing some cosmetic updates, all the major aspects of the house seem to be in pretty good shape.

Is it relatively easy and quick to deal with Commissioner of Accounts? Would it be wise to offer a lower price since it's been sitting for a year or just buy at full asking price? Any pointers would help!

I'm a first time home buyer, & plan to house hack. Should I be fully transparent with the lender I choose that I will be renting rooms while staying in one (or possibly living in a parked rv/travel trailer in the driveway)?

Does it depend on the loan type (FHA vs conventional)? I know that the home cannot be an investment property for some of these loans.

I don't want any surprises throughout the process, nor do I want to come off as shady to the lender if I decide to work with them on future investments. Thanks!