You can examine the foreclosure file to find out how much HUD has in it. This is irrelevant though because the original asking price is based on a recent appraisal.
Since it is available to all purchasers you should submit the lowest bid possible. In my area the minimum net to HUD is 87% of asking price for investors.
The escrow is for repairs. IE means insured with escrow. This means an owner-occupant can get an FHA mortgage and the repair money can be escrowed.
Am looking for my first investment property and would like to know the ins and outs of purchasing HUD properties. Currently looking at one:
3/2 IE $64,800
Daily-All Purchasers Daily $72,000 $5,335
Note:INSURED WITH ESCROW WITH CONDITIONS PRICE REDUCED
Questions are:
How do I get info pertaining to how much HUD has in the property. What kind of bid should I submit? What is the escrow for. What does IE stand for? Any other info would be greatly appreciated
Thanks for the info Rob, I see that your in Fl., I’m in the Daytona Beach area. The property I am looking at needs about $6000 rehabbing if I do it myself. HUD’s original FMV was 72000 now reduced to 64800. As this will be the first HUD property I’ve bidded on and only my second investment property, 1st one was originally primary residence. I’m a bit leary, any chance of HUD taking a low ball offer as it’s been on the market for awhile? I was thinking at starting off at $45000?