Author Topic: Very Strange Occurence w/ HUD Home Purchase....  (Read 1277 times)

CatamaranSailor

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Very Strange Occurence w/ HUD Home Purchase....
« on: April 27, 2018, 07:54:10 AM »
I'm wondering if anyone here has experience purchasing from HUD...

Here is what happened: I found a property that was interesting. I did some research, talked with the agent listed for the property and read up on the HUD process (way too long to go through here). The property had been listed previously with HUD and had not closed. I was told when the property would be re-listed on the HUD Homestore. Here is where it gets weird...the property was listed...in the middle of the night for just about three hours. Everything HUD is done on Eastern time....so it went on the site sometime around midnight and was off just a few hours later. Now the property does not appear at all and according to Zillow is nowlisted as "Sale Pending."

My question is this...(I understand that with the property having been previously listed it was now available to investors as well as people planning to occupy it...so there probably were quite a few people ready to swoop in)...is this normal to list a property in the dead of night and then take it off almost immediately? It smells fishy to me, but I have no experience with HUD, so maybe it's all over board. Just curious...

MaikoTsumi

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #1 on: April 27, 2018, 11:57:36 AM »
The listing or delisting of a HUD home does not reflect any offers made.  The packets are quite large and there are several approved asset manager that have different processes as well as following HUD processes. 

Sometimes you are making offers on properties that have already been approved to purchase by another buyer during a previous listing period.  Sometimes these buyers fail to complete the purchase and they come back on market.  You can even have your offer set as hold as backup in case this happens.

Lately, HUD is not allowing homes to linger past one or two listing periods in the Extended listings period, so you need to make your offer or they now get sent to another clearing house or other agent.  Sometimes at better or worse pricing.

MaikoTsumi

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #2 on: April 27, 2018, 12:03:46 PM »
To answer your specific question, no one swoops in.  If your offer arrives at midnight or 12:01, the offers aren't opened until the bid open date/time.  Yours only get opened( and other bidders) if they don't have an acceptable offer from the previous listing period.

dollarchaser

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #3 on: May 14, 2018, 11:46:39 AM »
The scenario you described in odd. A Daily listing will be open to offers till midnight. If you offered the answer will come the next day.
Hud doesn't do anything in the middle of the night that I know of. I was left waiting till Monday recently since a communication was not answered by hud Fri afternoon.
I have bought a few hud homes and am in the middle of another. Usually the price makes it worth it to jump through hoops.

matchewed

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #4 on: May 25, 2018, 08:24:51 AM »
Also many HUD homes have stages that they can be offered. Initial offerings to veterans, teachers, police officers. Then the wave of owner occupied bids and finally they will accept bids from investors.

You might have caught the transition of one of these waves. While a bid was being evaluated it could have transitioned to open for other bids. I talked with an investor who says he put down a bid for the property I got as an owner occupied bid. Technically he shouldn't have been able to bid until the owner occupied time was up but maybe there are occasionally crossed wires.

hgjjgkj

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #5 on: May 25, 2018, 12:41:54 PM »
The listing or delisting of a HUD home does not reflect any offers made.  The packets are quite large and there are several approved asset manager that have different processes as well as following HUD processes. 

Sometimes you are making offers on properties that have already been approved to purchase by another buyer during a previous listing period.  Sometimes these buyers fail to complete the purchase and they come back on market.  You can even have your offer set as hold as backup in case this happens.

Lately, HUD is not allowing homes to linger past one or two listing periods in the Extended listings period, so you need to make your offer or they now get sent to another clearing house or other agent.  Sometimes at better or worse pricing.

What other clearing houses get HUD homes?

MaikoTsumi

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #6 on: May 29, 2018, 06:51:17 AM »
The listing or delisting of a HUD home does not reflect any offers made.  The packets are quite large and there are several approved asset manager that have different processes as well as following HUD processes. 

Sometimes you are making offers on properties that have already been approved to purchase by another buyer during a previous listing period.  Sometimes these buyers fail to complete the purchase and they come back on market.  You can even have your offer set as hold as backup in case this happens.

Lately, HUD is not allowing homes to linger past one or two listing periods in the Extended listings period, so you need to make your offer or they now get sent to another clearing house or other agent.  Sometimes at better or worse pricing.

What other clearing houses get HUD homes?

    Hubzu, Auction.com, and I've seen occasionally the local listing agent continue to list it after it's pulled from the site.  Auction.com sucks because they play games with the bidding(shill bidders).

radram

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #7 on: May 29, 2018, 07:23:35 AM »
Sorry to derail this thread. Maybe someone here can point me in the right direction.

I share a water well with the house next door. The well, power to the well, and well equipment all reside on the neighbors property.

The neighbors home was foreclosed on last December. Bank tried to sell it, but it has major renovation needs including a poured foundation wall sinking in about 2 feet, a roof that is rotten to the trusses, mold, dog and cat damage, etc.

The house has never been open for a viewing. I was able to enter it before the owners, who were squatting for 2 years, left and let me in to take a look. I seriously doubt the home could be salvaged for less money than a tear down and rebuild.

I was able to obtain some more information after the electric company cut the power last month since the bank never paid the electric bill. With no power to the neighbor's home, the pump can not supply water to me. After a couple of days, the bank restored the power, and I now again have water.

The bank's selling price seemed about $100,000 too high to me due to the damage and the fact that any bidder could not even go inside to look at it. In talking to the bank, they told me it is a HUD insured mortgage. They are looking to fix it up just enough to collect the insurance, and then revert it back to hud. Who knows what hud will do with it. They have been doing silly things to the property like painting, hanging gutters, replacing soffit and facia while ignoring the items that might ultimately condemn the home like mold, no roof, and a collapsing foundation. It seems they are fixing it up to have it destroyed.

I would be interested in the property as land, or as a rental property if the problems were properly repaired. I am also concerned with my water, especially if the home is owned by HUD and during the tear down process if it happens. Does anyone here have some advice as to where to go to best protect my interests.

One thing to keep in mind: If fighting this with lawyers costs thousands, I might just as well pay to put in my own well(cost is about $12,000) instead. We anticipated water problems when we bought our place, and our purchase price reflected us figuring on drilling our own well at some point.

Maybe I can fight to take control of the existing well?


matchewed

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #8 on: May 29, 2018, 10:11:30 AM »
Sorry to derail this thread. Maybe someone here can point me in the right direction.

I share a water well with the house next door. The well, power to the well, and well equipment all reside on the neighbors property.

The neighbors home was foreclosed on last December. Bank tried to sell it, but it has major renovation needs including a poured foundation wall sinking in about 2 feet, a roof that is rotten to the trusses, mold, dog and cat damage, etc.

The house has never been open for a viewing. I was able to enter it before the owners, who were squatting for 2 years, left and let me in to take a look. I seriously doubt the home could be salvaged for less money than a tear down and rebuild.

I was able to obtain some more information after the electric company cut the power last month since the bank never paid the electric bill. With no power to the neighbor's home, the pump can not supply water to me. After a couple of days, the bank restored the power, and I now again have water.

The bank's selling price seemed about $100,000 too high to me due to the damage and the fact that any bidder could not even go inside to look at it. In talking to the bank, they told me it is a HUD insured mortgage. They are looking to fix it up just enough to collect the insurance, and then revert it back to hud. Who knows what hud will do with it. They have been doing silly things to the property like painting, hanging gutters, replacing soffit and facia while ignoring the items that might ultimately condemn the home like mold, no roof, and a collapsing foundation. It seems they are fixing it up to have it destroyed.

I would be interested in the property as land, or as a rental property if the problems were properly repaired. I am also concerned with my water, especially if the home is owned by HUD and during the tear down process if it happens. Does anyone here have some advice as to where to go to best protect my interests.

One thing to keep in mind: If fighting this with lawyers costs thousands, I might just as well pay to put in my own well(cost is about $12,000) instead. We anticipated water problems when we bought our place, and our purchase price reflected us figuring on drilling our own well at some point.

Maybe I can fight to take control of the existing well?

Maybe start your own thread? This isn't just derailment, it's hijacking.

radram

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Re: Very Strange Occurence w/ HUD Home Purchase....
« Reply #9 on: May 29, 2018, 03:51:24 PM »
Sorry to derail this thread. Maybe someone here can point me in the right direction.

I share a water well with the house next door. The well, power to the well, and well equipment all reside on the neighbors property.

The neighbors home was foreclosed on last December. Bank tried to sell it, but it has major renovation needs including a poured foundation wall sinking in about 2 feet, a roof that is rotten to the trusses, mold, dog and cat damage, etc.

The house has never been open for a viewing. I was able to enter it before the owners, who were squatting for 2 years, left and let me in to take a look. I seriously doubt the home could be salvaged for less money than a tear down and rebuild.

I was able to obtain some more information after the electric company cut the power last month since the bank never paid the electric bill. With no power to the neighbor's home, the pump can not supply water to me. After a couple of days, the bank restored the power, and I now again have water.

The bank's selling price seemed about $100,000 too high to me due to the damage and the fact that any bidder could not even go inside to look at it. In talking to the bank, they told me it is a HUD insured mortgage. They are looking to fix it up just enough to collect the insurance, and then revert it back to hud. Who knows what hud will do with it. They have been doing silly things to the property like painting, hanging gutters, replacing soffit and facia while ignoring the items that might ultimately condemn the home like mold, no roof, and a collapsing foundation. It seems they are fixing it up to have it destroyed.

I would be interested in the property as land, or as a rental property if the problems were properly repaired. I am also concerned with my water, especially if the home is owned by HUD and during the tear down process if it happens. Does anyone here have some advice as to where to go to best protect my interests.

One thing to keep in mind: If fighting this with lawyers costs thousands, I might just as well pay to put in my own well(cost is about $12,000) instead. We anticipated water problems when we bought our place, and our purchase price reflected us figuring on drilling our own well at some point.

Maybe I can fight to take control of the existing well?

Maybe start your own thread? This isn't just derailment, it's hijacking.
Agreed