Tuesday, December 13, 2011

WoW! $100 Down Payments for HUD HOMES

If you live in  Arkansas, Colorado, Iowa, Kansas, Louisiana, Missouri, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Wisconsin, Wyoming and Utah,

You can purchase a HUD home for $100 down payment.   Go to $100 HUD Programs
for more info.

Monday, December 12, 2011

Arkansas Suspends HUD Home Sales

We just learned that HUD homes in Arkansas will not be available for sale.
This halt of sales is do to properties not being able to convey with clear title.
If anyone has more info on this, please comment. 

I suspect it is due to the MERS  Mortgage Electronic Registry and the fraudulent use of robo signers.  This is just my opinion. 

Sunday, December 11, 2011

Your HUD Broker Earns 3% Commission

Commissions,  for many first time buyer's has been confusing.  HUD homes, are no exception.  When an offer is submitted the maximum commission paid to the broker representing the buyer is 3%.  The listing broker also makes 3%.  The commission to the buyer's agent, is not fixed in stone.  They may be willing to discount it a bit in order to assist in facilitating a winning bid.  Just ask, it is up to the buyer's agent, if they are willing to do this.  Some will some won't.  Please note, it is negotiable.  the listing side is a bit more tricky.  These commissions in most states are fixed, and have not observed flexibility.  The listing agent is also allowed to represent the buyer, in those cases the real estate broker can earn a 6% commission.  This does create an unfair competitive advantage, to buyers using a non-listing broker.  As the listing agent, has incentive to discount the buyer side of the commission.  This is a new change in the HUD policy.  A change many brokers disagreed with because of the bias.  If you submit an offer on a HUD home you must use a HUD Approved Broker.  This search feature will be available soon form this blog.

Friday, December 9, 2011

A tip for a winning bid on HUD HOME

One of the many benefits to purchasing a HUD home, is that it is fair, no secret handshakes or pocket listings.  Home buyers have an equal shot, based purely on price.  Remember, investors can only bid after a property has been listed for 30 days.  Owner occupants bid after 10 days.  The winning bid, is calculated on net proceeds to HUD.  This net value is after closing costs and broker commission.  If you use an FHA loan, you can take up to 3% in closing costs. So, on a $200,000 offer, you can have a closing cost credit up to $6,000.
Instead of taking the full $6,000, you may want to adjust down by $50 to $5,550,  this  adjusts up the net to HUD up by $50.  Thus giving yourself an edge when competing with the sealed bid.  You can win a HUD sealed bid auction by $1.