Top 3 Cheap Cities for Seniors

Top 10 Most Affordable Cities For Seniors

1. Daytona Beach, Florida.
2. Pocatello, Idaho
3. Bangor, Maine
4. Greenville, South Carolina
5. Grand Rapids, Michigan
6. South Bend, Indiana
7. Mill Creek, Pennsylvania
8. Louisville, Kentucky
9. Sherman, Texas10. Pueblo, Colorado

Affordable Cities and Cheap GovernmentHomes makes good $ense for Seniors. 

Hud Homes Hit The Market

There back.....I wasn't sure.  HUD recently announce that hud home sales have increased.  

I am speculating that this increase in hud home inventory is due to the resolution of title issues associated with robo signers and foreclosure fraud.

HUD properties, result from the FHA financing foreclosure process.   The robust mortgage and real estate market is generating more FHA financed homes.  As of February this year, national HUD Home inventory was just under  39,500 properties. 

HUD homes, sold through sealed bid, are often appealing to investors and first time home buyers, because of their discounted selling price and efficient closing process.  In certainly makes $ense compared to renting.

Please read around my blog, there are some great tips for bidding and buying Hud homes and foreclosures.

Hud Home Check List

HUD Homes listed for sale are always vacant.  
Don't hesitate to look around the house and look in the windows.  
You will know within minutes if this house is right for you.

A quick little list to keep handy.

Address_________________

Write Down One Item Your Remember  IE  Big Tree in Front Yard, Barking Dog:  _________________
e Poor_

___Square footage

___Number of bedrooms

___Number of baths

___Practicality of floorplan

___Interior walls condition

___Closet/storage space

___Basement

___Fireplace

___Cable TV

___Basement: dampness or odors

___Exterior appearance, condition

___Lawn/yard space

___Fence

___Patio or deck

___Garage

___Energy efficiency

___Screens, storm windows

___Roof: age and condition

___Gutters 

___Parking

___Appearance/condition of nearby

___homes/businesses

___Traffic

___Noise Level

___Safety/Security

___Barking DogsTHE

 ___Police Reports_

___School Locations

___Quality of teachers

___Achievement test scores

___Busing distance: Good Average Poor_

___Supermarket

___Work Commute Time

___Shopping Access

___Child Care Access

Make Several copies of your list, more than likely you will be visiting several homes and after 2 or 3 houses they start blending together.

Feeling Left Out? Can't Buy a Foreclosed House?

Low Down Payment With HUD Auctions

In most cases, first time buyers get screwed by the big boys with cash.

The average home buyer is not able to compete with all cash offers or 30% to 50% down payments.  Housing Wire reported today, first time home buyers are loosing houses to cash buyers and bidders with large down payments.

No Worries

When you buy a HUD House.  All bids are treated equally.  You can win by $1 or $1,000.  Hud homes, that are FHA Insured or in HUD Language  IN generally do not go over asking price.   Hud homes are apprasied by an FHA apprasier.  This price determines, the amount FHA will insure on a home loan.  This keeps the bidding reasonable and fair, and of course you can bid under the asking price. 

In many cases, even if there are multiable bids, you can still win the bid with a smart bidding strategy.  The winning bid is determined by highest net value.  FHA will only loan on the orginal list price, any amount over must be paid with cash out of pocket. For example if a HUD house is first listed for $75,000 and the buyer is going to use a FHA loan, we know that the offer price will not be higher than $75,000.  In some cases, buyers may prefer not to use an FHA loan and then they may offer a higher price.  In my experience, bidders who bid way over asking price on a HUD house, will often times drop out, (buyers remorse) because they realized they paid too much, however if the buyers use a non-FHA loan, they are not restricted by the FHA apprasial of the orginal purchae price and may bid higher.

Winning Bid Example

Buyer A bids $75,001,  Hud will pay up to 3% closing costs and will pay up to 3% in commissions.

Buyer needs the full 3% closing cost credit or $2,250 and the Hud Approved broker requires full commission of $2,250. (3% x $75,001) please remember, the commission paid to the Approved Broker representing the buyer is negotiable.

$75,001 Offer Price from Bidder A

$2,250   Closing Cost Credit from HUD

$2,250   Commission paid to Hud Approved Broker from HUD

$2,250   Commission paid to Broad Listing Agent  (A fixed amount at 3% and not negotiable)

$68,251  Net Value to HUD.   This is the value to determine winning bid.

Buyer B bids $74,500, Buyer B does not need full closing cost credit, and only asks for $2,000 and Buyer B’s broker agrees to take off $235 off the commission, for a flat $2,000 (3% x 74,500)

$74,500  Offer Price

$2,000   Closing Cost credit to buy from HUD

$2,000   Commission paid to Hud Appproved Broker from HUD

$ 2,235  Commission paid to Broad Listing Broker from HUD

$68,265  Net Value to HUD

Bidder B Wins by $14 even though Bidder A bid $501 higher.   By taking less closing costs and through broker cooperation, a win-win relationship created a winning bid.

HUD Homes make $ense. The bidding is fair and with good strategy and an experienced HUD Approved Broker will help you win the bid without over bidding.

Top 3 Tips for a Winning Bid

1. It will take 3 to 4 offers to Win
2. Being in second place as back up gives you a great chance to win without over paying.
3. Track the Bid Results to give you an idea if bids are going over price or below price, just remember that the price posted is net to HUD not offer price.  

FHA's Shadow Inventory

FHA-Distressed Asset Stabilization Program established to deal with the flood of shadow inventory....


Secretary Shaun Donovan  announced 707,000 severely distressed fha-mortgages have been processed to date.  The highest number of foreclosures recorded .   May 30, Core logic reported 64,000 new fha-mortgages were in foreclosure for the month of April.  FHA disputes the April numbers.  


20,000 Homes Being Sold to Investors


.... represents 3% of the HUD REO inventory   In fact with this new report Real Estate Buyers can anticipate 59,000 fha-mortgaged back foreclosure hitting the market in the next the next 12 months.   I am not clear when the flood gates open, but you want to stay connected to these indicators.  2012 Represents the lowest record of HUD REO Portfolio.


FHA REO Inventory Lowest Level Since 2009


...... stated, Acting FHA Commissioner Carol Galante   “At the same time, the inventory of seriously delinquent loans is near an all time high.  This provides further indication of the coming foreclosure dump, which I hope you are ready.


Private Investment Purchase Pools 


.....will acquire through bulk pool sale at current market conditions,   with the goal of bringing  the loan out of default in three years.   The investor/servicer must provide work out solutions with 50% of pool. 


Start You Engines....


Seriously, now is a very good time to state  implementing your real estate goals.  It will be a fun and exciting game,  stay connected to JustHud.

What is A HUD Home?

Really?  Home is Home....does it really matter who owns it?   When we hear Hud Home or Bank Owned or VA Home, what does it really mean?   90% of the foreclosure hype on the internet is garbage.   You know this, however, we want to pursue our burning desire to find the best house at the best price, no matter how confusing or frustrating it might be.   I hope my blog can help, Please bookmark, we are planning out some amazing tools that will cut through the crap and lead you to some fun and meaningful tips, so you can own your own home before the market heats up.   


Don't Worry About Being In a Hurry.


Prices are going to continue to drop, some say by 20%, As shadow inventory hits the market we will be having a lot of fun buying houses, I like Hud Houses.  And btw, it does matter who owns the house.


Not in a big way, but in small ways.  By learning the little known facts about HUD Homes you will be a successful home owner.  This is why I started this blog, to give you a competitive edge and to support you to being in the right place at the right time with a winning bid that makes $ense.  I believe anybody can own a home if you are committed to it.  It doesn't matter if you are 18 or 75, have a discharged bankruptcy or foreclosure.   With good information, a burning desire and happy thoughts, you will make it happen.




A HUD HOME is....


HUD = Housing and Urban Development;    HOME =  Single Family Residents and Muti-Family Units (under 4 units) that are sold to the owner occupants and investors  through a sealed bidding process. These properties were originally purchased using a FHA insured loan. The property was foreclosed by the lending bank and then purchased by the government and transferred to  Real Estate Asset Managers to represent the government in selling the property.  Check out the list and drive by today.

Rent a Foreclosed Home

No….I am not writing about renting your current house that is in foreclosure, I am happy to give you the run down on that, as I have heard owners staying in their home up to 3 years without rent.  But..that’s not what this post is about.  This is a blog about Buying HUD Homes, not living rent free or collecting rent from your foreclosed house.

Top 5 Benefits to Renting

1.   Free Repairs, the landlord foots the bill.

2.   Home prices keep falling Shillings (insert article) another 20% is anticipated.

3.   Stuck with loud smelly neighbors and a barking dog.

4.   Renting will always be cheaper than buying in higher end neighborhoods.

5.    The freedom to move whenever you want

I fundamentally agree with all of them.

However, if you don’t buy a house, and your going to rent, guess what?  The odds are the house you will be renting was a recent foreclosure.  

If your going to Rent a Foreclosure Why not buy one?

1.    You know you love home repair projects, even if you are all thumbs and it feels good to fix it yourself, watch your kids fix it and to be yelled at for not fixing it....well some people like it when their spouses yell at them.

2.    Once home values start going up so will your rent. Do I need to say more?

3.    If you own or rent, barking dogs and smelly neighbors suck.  Since we can’t shoot the dog or hose down the smelly kids next door, Check Out Your Neighbors, know who they, this is a must for renters or owners.

4.    If good schools or living in a high priced neighborhood is your primary goal and renting is the best option, there is no shame or loss in this decision. Do it, no guilt.

5.    This Is My Home! No permission needed to smoke, have a dog, put up a playground or design your own private dungeon for the loud neighbors…sorry I just couldn’t help myself.

Just Buy Smart

Watch the value trends in the neighborhood.  When you see a HUD home for sale.  Pay attention to the list date.  This gives you a good idea, how long the house has been on the market, this helps as you develop your bidding strategy, which I will write about in upcoming posts.

Try to get an idea of buying interest. High buying interest is good and bad.  It’s good to know you are looking at a property others are interested in.  It’s bad, because you have to pay more, because of the competition.  However when you buy a hud home with an FHA  loan, you will never have to pay more than the current appraised value.  

As a general rule, you can bid lower than asking price.  If the bid was not accepted, keep edging upward. The Asset Manager, will not counter back with a price, you just have to bid again the next day by 11:59pm  that same day.  If you are committed a buyer your HUD approved broker and are qualified for an FHA loan and have the $500-$1,000 deposit, your broker should be ok with submitting offers each day till the bid is awarded.