HUD Possibility

[Ianster]

Hi All,

I just came across another possibility today. Those who have read my "beginner needs advice" thread know that I am trying to follow in the footsteps of my friend who bought a duplex in a high-appreciation area of my town.

This afternoon, I was treated to a potential birthday gift: HUD has a 2-family up for bidding right across the street from my friend.

It is at: http://hud1.towerauction.net/cgi-bin/e10_select_property.cgi?id=352267218&office=e10&state=NJ

I am unsure of a few things:

1. What do people do when it's not the right time? Silly question... but since I am getting married in August, I am really wishing that this house would reappear on the block around the end of the year.

2. How do people get rehab loans and is that possible with bidding on a HUD home? I have no money yet to spend on rehabbing, yet I have heard that there is a way for a lender to lend me some part of the after-repair value. How does that work?

This house is in pretty bad shape, and I really wish I had someone to hold my hand during the part where I calculate how much it will cost to fix everything.

If anyone feels like it, can you please check out the link and perhaps give me some pointers?

Thank you,
Ian

[Dan Auito]

Hi All,

I just came across another possibility today. Those who have read my "beginner needs advice" thread know that I am trying to follow in the footsteps of my friend who bought a duplex in a high-appreciation area of my town.

This afternoon, I was treated to a potential birthday gift: HUD has a 2-family up for bidding right across the street from my friend.

It is at: http://hud1.towerauction.net/cgi-bin/e10_select_property.cgi?id=352267218&office=e10&state=NJ

I am unsure of a few things:

1. What do people do when it's not the right time? Silly question... but since I am getting married in August, I am really wishing that this house would reappear on the block around the end of the year.

2. How do people get rehab loans and is that possible with bidding on a HUD home? I have no money yet to spend on rehabbing, yet I have heard that there is a way for a lender to lend me some part of the after-repair value. How does that work?

This house is in pretty bad shape, and I really wish I had someone to hold my hand during the part where I calculate how much it will cost to fix everything.

If anyone feels like it, can you please check out the link and perhaps give me some pointers?

Thank you,
Ian
Ian the right time is when a good deals pops up, you have to be like a cat and pounce on a good deal when you see it.
This property will qualify for the HUD 203K Rehab funding program, the way it works is you make your bid, if your the lowest you win(duh) then you close and and make your repairs list using hud guide sheets. As the work is done hud will release funds on a draw basis to the folks who are to be paid for the work. A hud inspector comes to the property when you call for an inspection of work done to get the draw. usually it takes about three phases of getting the work done, 3 visits, 3 draws. then when it is complete hud rolls those rehab draw funds into your final loan amount and that is your new mortgage.

I have done a couple of these and when you get a good property the effort can indeed be worth your trouble. Get your bid in and don't bid to high, know your numbers and what you will do with the property once you have it.

If you get beat out, tell them to keep your offer as a back up, many times the high bidder fails to follow through and they go to the next highest bid to see if you would like the deal. (Happened to me!) got it $5,000 cheaper too!

[REIaddicted]

Ian,
just a quick comment on " if the timing isn't right" .

The timming is ALWAYS right buddy . As John Michael says " if it is a good deal, the finacing comes to you" or " money has 12 legs, you have 2, who is going to outrun who?"

Being a mother, this is what I liken it to....

If I wait to have kids until the timing is right ( enough moeny, career in full swing, own my own home free and clear, be debt free, ect) I would have NEVER had kids.

Think of REI the same way, if you are waiting for the " perfect time" or "perfect life conditions" then you will never get in to REI.

In short.. The time is NOW. Let us know how things go :SM122:

Lisa

[Ianster]

Hi,

I like what you're all saying, but I need to make something clear: This is not just "not the right time", it is a very bad time monetarily: I have zero money until after the wedding, after which I expect my yearly bonus + any monetary gifts we receive.

I just found out that to make a HUD bid, I need $1000 earnest money. I don't even have $200 earnest money right now.

If there's a magical way that I could bid on the HUD home, get it with 0 down and 0 reserves (with the expectation that I will have reserves at the end of August), and do all the HUD necessary repairs, then I would love to hear it!

Thank you,
Ian

[Just Information]

Sorry my friend you will need funding in place to deal with HUD properties, you can apply for a FHA loan by way of HUD's web site.



Hi,

I like what you're all saying, but I need to make something clear: This is not just "not the right time", it is a very bad time monetarily: I have zero money until after the wedding, after which I expect my yearly bonus + any monetary gifts we receive.

I just found out that to make a HUD bid, I need $1000 earnest money. I don't even have $200 earnest money right now.

If there's a magical way that I could bid on the HUD home, get it with 0 down and 0 reserves (with the expectation that I will have reserves at the end of August), and do all the HUD necessary repairs, then I would love to hear it!

Thank you,
Ian