HUD property problem!! - Posted by Tim (CT)

Real Estate Investing Real Estate Financing
#1

Posted by Angel Gutierrez on June 21, 2001 at 22:51:31:

This is true, no financing…no deal. If that’s the way the contract is written. Go over it with a fine tooth comb and read it line by line. I got stung like this before and I realized (after much time had passed) that all I had to do was not sign the release form from the title company to forfeit the E.M.
Then call the Dept. of Real Estate or whatever the licensing bureau is called in your state and file a complaint stating you were misled and give them copies of EVERTHING! Let all the parties involved know what you’re doing and believe me…you’ll get your money back…fast! Don’t let these people play games with you. If they’re trying to cram this condo down your throat…throw it back up! Sellers have to sell…buyers Don’t have to buy!
Go get 'em!

Angel
Dallas, Tx

#2

HUD property problem!! - Posted by Tim (CT)

Posted by Tim (CT) on June 21, 2001 at 12:58:42:

Recently, I signed a contract with an agent to purchase a 1 bedroom condo, which is also a HUD property for $32,000. Before I signed, I made sure there was a mortgage contingency within the contract. Now, my agent is telling me that even if I get a denial letter (I’m trying to back out because the realtor also gave me incorrect market values for the condos and the numbers don’t look too good), HUD won’t release my $500 deposit because I am an investor. She said they’re saying that the contingency is only valid for owner-occupants. Is this true? If so, I either have to go through with the deal and potentially get a bad property (or, at least a tough property to make any money off of it) or walk away from the deal and loose my $500.

If the statement about investors and getting the deposit back is true, is there something I can do to get my deposit back even if the realtor has to pay for it?

Any thoughts would be appreciated.

#3

Re: HUD property problem!! - Posted by Angel Gutierrez

Posted by Angel Gutierrez on June 27, 2001 at 21:00:57:

I read some of the other posts and frankly, I wanted to ask you an important question…WHY are you even bothering with HUD properties? I see sooo many of them that kind-of go like this:
$ 100,000 Market Value
$ 10,000 Repairs required
$ 90,000 Sales price

So where’s the beef?
If you want to make money doing foreclosures, get’em before they go back to the bank. Go and knock on the troubled homeowners’ door and make a deal…simple as that. That simple step is the one MOST people won’t make because they’re too chicken and consequently fail at the “ART OF THE DEAL.” I do three houses a month. I sell one and keep two. That’s it slim! One out of every five doors I knock on want to make a deal now and they do it MY WAY.
Keep reading the posts, they are VALUABLE!
Also, Educate yourself to the fullest extent possible, especially the LAW! You must know every facet of this business or you are destined to crash and burn. Then you’ll fall into the sea of the unwashed masses that go around telling other people that this or that can’t be done…it’s all a scam…blah-blah-blah!

So go get 'em! Let me know what happens.

Angel
Dallas, Tx

#4

2 of the answers are WRONG! - Posted by Randy Jensen

Posted by Randy Jensen on June 26, 2001 at 01:07:31:

If you are an investor it states very clearly that all earnest monies will be kept by HUD if the transaction fails to close for any reason. Take it ffrom me, I am the Broad Listing Broker for Colorado, and I sold over 450 HUDs last year. You back out you lose your EM. If you are owner occupied it is another story.

Randy Jensen

#5

Re: HUD property problem!! - Posted by Ann

Posted by Ann on June 21, 2001 at 22:23:21:

HUD’s first priority is to sell property that will be owner occupied. Hence, the real estate agent is correct as an investor you would forefeit your deposit. If a HUD property does not sell to a buyer that will occupy the the housing HUD authorized agent can make deals with investors. Some of these are great deals for investors if you have all the information when you go into the deal. But, all may not be lost it seem to me you have a problem of full disclosure from your agent. All real estate agents are bound to full disclosure and can lose their license if they violate this code of ethics. You might want to write a letter to the agent stating that you are concern about the incorrect information about market value, in violation of full disclosure and you are backing out of the deal and send a copy to HUD. Real estate agents are very nervous about this and will make deal. If you would like to confirm HUD rules on disposal of property the agency in charge of this for HUD is Citiwest Inc. located in Hartford, CT. 330 Main St. 06106 860-244-2783 and 860-244-2798 (fax) or online at www.citiwestinc.com and go to Earnest Money Foriture and Return.
Some HUD deals are good deals for investors it all depends. Always checks the area housing prices or rents. Some properties are in distressed neighborhoods check out the sorrounding area is it showing sign of turning around, if it is can you can enough rent to make it work in the long run (only if the neighborhood is on the come back. All city’s have areas that have been distressed at one time or another. Do some city reseach. Check with the city to find out which areas they are putting money into to turn around. Next time do not depend on the agent to give you market value information do your own reseach the agent works for the seller you work for yourself.

#6

Re: HUD property problem!! - Posted by Mike

Posted by Mike on June 21, 2001 at 20:24:32:

Being an investor has nothing to do with the security deposit. If the purchase of the condo is contingent on obtaining financing (mortgage) and you get denied then your security deposit should definitely be refunded. From the sounds of it your agent if feeding you a bunch of crap. Make sure to get your $500 back.

#7

Re: HUD property problem!! - Posted by Paul

Posted by Paul on June 26, 2001 at 12:56:00:

Im in Hawaii and being an investor does have something to do when purchasing a HUD property. Read the contract, it clearly states so.