All Forum Posts by: Greg H.

@Randy King Yes you will get your EM back if your contract is not accepted by the HUD contract reviewer and the bid is cancelled

@Account Closed Once the bid is accepted HUD will not let you change the Title that the bid was accepted under or the SS#/EIN. Depending on the Asset Manager, they might let you add a name after the contract has been accepted

@Wendell De Guzman Yes you can just not turn in the contract, however I would not recommend doing that on a regular basis if you are planning on doing a lot of business with HUD as I believe(No proof) that I do receive bids on some of their older inventory because I do have a track record of closing on these as a Broker/Investor

@Wayne Brooks I agree with Wayne that as a Broker I do not waste much time with blind offers as most of them are just fishing and a waste of time.

Very tough to do if the buyer is getting financing especially FHA,VA or USDA and even most Conventional lenders as the buyers lender is going to view it as a flip and either want seasoning, multiple appraisals or both. Check with the buyers loan officer and see what requirements the underwriter will have BEFORE getting 45 days down the road and the underwriter reviews the title commitment and rejects the file

I walk away from a few thousand dollars a year in Earnest Money with HUD. I look at it as a cost of doing business and much better than the alternative of getting into a bad deal. There are not any additional reprocussions with HUD and several times I have ended up purchasing the property at a lower price following a price reduction

@Account Closed

Since HUD only considers net to them, the amount of commission does matter. Using the example above of the $100,000 purchase priced netting HUD $94,000, I(Being a Broker) can buy the same property for $96,800 and take no commission and my bid will be superior

If anyone is buying HUD homes on a regular basis, being licensed is a big money saver

So in the states listed an owner must accept Section 8 ? I am forced to let the Government(Housing Inspector) enter my property and require me to fix anything that he requires after I may have to wait 6 weeks or so with my property vacant for them to show ? I must risk the my rent will not show up if my tenant fails to show up for any re-certification even though I am not involved or contacted( Yes it happens) and if the Government is shut down I may not get paid at all ?

Does everyone else have a huge problem with this like I do ?

@Wayne Brooks

Most definitely that is what title insurance is for. My point was that at least in Texas(The only state I have purchased a HUD) the HUD designated closing company does do a title seach/report and/or commitment and on the Buyer Select properties the company I use does this as well. Title insurance here is +-1% of the purchase price. So, in a HUD purchase there are safeguards in place to protect the buyer in regards to title. I would never suggest a buyer not get Title Insurance in a "standard" transaction

You do not have to participate in the Section 8 program as it is an "opt-in" program for an investor unless as stated earlier your property is a tax credit project or another government subsidy program which is usually larger multi-family complexes

@Mark Ferguson

I don't think I would dismiss it as luck as I am very diligent it my business dealings and would suggest that someone without experience may want to purchase title insurance. I know that I have even suggested that is previous posts regarding a non- forclosure purchases or in taking a deed in lieu. Since I am not in Cali or Georgia it appears I did not win the Lotto last night....now that would have been lucky !

I know that this will not be the popular answer, but I have purchased 100+ HUDs and have never purchased title insurance. A title seach and/or policy is done during the transfer back to HUD as well as a title commitment/search done by the closing company. Occasionally a problem comes up before closing but has always been resolved and/or EM refunded

@Mark Ferguson

We all have our price ! And like I said....any client I would do that for has to make it "easy" for me. On another note, how much input do yall have with the asset managers ? I typically find that the listing agents have very little knowledge about what is going on with the bidding/pricing. I usually call them after the bid has been accepted and the prevailing answer is "Wow I had not idea that HUD would take that offer"