Posted by Irwin on May 05, 1999 at 22:58:05:
My area is being handled by Intown Management(or something like that, operating out of Atlanta). They’re
handling 14 states. They just got their first list up for a first bid submission date which happened to be today. They were six weeks late in getting started. They haven’t published any rules for bidding or payment, so we’re assuming they’re going by HUD’s prior procedure. They have a new contract form that nobody has yet, and instead of creating one that can be done on the computer and photo-copied, they created a new six part carbon paper form. Not too bright there.
I can’t judge their appraisals, but they seem to be in the same area that HUDs were.
I have no idea who these outsource REO contractors are, or what experience they have in handling sales of REO properties in huge numbers. These deals were all cut by HUD in DC and dictated to the field offices around the country. God only knows what’s going to happen. At best, the system will work approxiately the same as it did when the local HUD offices were running the show. At worst, the re-sale system will collapse in chaos, fraud and confusion, costing the taxpayers a gazillion dollars before HUD wakes up and takes back control.
HUD’s New Mgmt. - Posted by BR2
Posted by BR2 on May 05, 1999 at 20:42:37:
Just saw the first listing since HUD REO’s are being handled by a new company. From prior experience with HUD homes, they were priced well below market value because of their condition. On this listing I’ve noticed that the homes are being priced pretty close to FMV. Has anyone found this to be true in their area? Is this new company doing any repairs prior to listing???
Re: HUD’s New Mgmt. - Posted by CarolFL
Posted by CarolFL on May 06, 1999 at 14:55:06:
Look, guys. When there properties don’t move they will end up having to ‘get reasonable’ - as does any seller with a problem on their hands.
Keep your eyes peeled. SE Alliance ( the FL/PR and VI 1st Preston arm) will find themselves so backed up with properties that they will HAVE to start letting them go at investor prices or keep them on the books forever.
Re: HUD’s New Mgmt. - Posted by Jim IL
Posted by Jim IL on May 06, 1999 at 13:06:04:
In my area, HUD’s new marketing and management stated that the NEW listings would be available by “mid april”.
Well, here we are in May, and no new listings are up.
I am in Illinois, Chicago burbs, and our region is being covered by a company in Atlanta Georgia.
I hope they are competent in there idea for list prices, but we shall see.
I do know that in the meantime there have been SEVERAL new homes added to the HUD arena, and the old ones are still sitting.
So, perhaps the shear volume of inventory will be an asset to us, the area investors.
Anyone who has info on “In town management” from Atlanta, pleas pass it along.
Northern California - Posted by Rosie(CA)
Posted by Rosie(CA) on May 06, 1999 at 12:52:20:
There’s the Realty company hired by HUD, and another realty company hired to place ads in the MLSs.
So Realty company A wants it’s cut.
Realty company B wants it’s cut.
And HUD wants there cut.
This would explain why so many homes listed on the Web site are listed right at the appraised value. I’m not familiar with the prices outside my city, so I can’t tell ya if there appraisals leave any room for profit.
Re: HUD’s New Mgmt. - Posted by Dave T
Posted by Dave T on May 06, 1999 at 11:27:28:
In my area of interest, Intown Management Group is marketing HUD foreclosures. I see no difference in the pricing scheme since HUD usually priced their new listings at or near FMV (based on comps) in the MD and DC areas.
Under the new marketing approach, Intown Management Group will only consider full price offers during the first 30 days. Day 1 through 10 is reserved for owner occupant and non-profit/government organization bids. During day 11 through 30 full price offers will be accepted from investors. A bid at least 88% of list is considered a “full price” offer. Deeper discounts are considered “less than full price” offers. Remember that the 88% includes the realtor’s commission. Therefore, your bid must be within 5% or 6% of list price to be accepted in the first 30 days.
In the next sixty days (day 31 through 90), less than full price bids will be accepted from the general public on a first-come, first-served basis. I am led to believe that less than full price bids from investors may be submitted at any time, but they won’t be opened until day 31, then daily thereafter.
As before, HUD properties are offered “as is” and the pricing is supposed to reflect the condition of the property and needed repairs. HUD will not make any repairs either before listing a property or as a contingency in a purchase offer.
Since I believe one objective of the new marketing system is to standardize procedures across the country, I hope this explanation of the process in my area will help you understand what may be happening in other regions.
Re: HUD’s New Mgmt-STINKS! - Posted by Matt-MO
Posted by Matt-MO on May 05, 1999 at 21:43:11:
If the company you are referring to is FIRST PRESTON as it is in my state, I whole-heartedly agree with you. These new appraisals are completely unrealistic in the St. Louis market. I have had similiar feedback with 2 newsgroup members in the KCMO area and FL. Here, in the past, you had 60 days to close (now 45 days), could make a minimum bid at NET 80% of ask once it was up for investor bidding (now a ridiculous NET 87%), could put earnest money up in the form of personal check (now you have to run to bank and get certified funds), you knew if you were successful bidder over breakfast (now late in the afternoon…then they expect you to overnight all materials…you have to DASH to the bank to get that check) and in general could feel secure that if you were the successful bidder that you were getting a decent deal (NOT ANYMORE!). Believe me, I have never made the HUGE bucks at this on any given deal, but I have been able to provide for my family and live comfortably on a typical $8,000-$9,000 or so profit each after rehab and holding costs. This is under what most of the successful “gurus”, ie, Britton, Myers etc… would say is feasible for investment property ($10,000+ profit each deal) Now we get these clowns in here and sadly, the days of the HUD “deal” are seemingly dead…at least until the backlash hits First Preston when they find all these empty foreclosures sitting around that nobody will bid on. I say, DOWN WITH FIRST PRESTON!!! Ok, with that off my chest, I humbly step down from the soapbox…
Matt B. (MO)
Update on my post below - Posted by Irwin
Posted by Irwin on May 07, 1999 at 19:37:47:
Hi Jim: In Indiana we’re also under InTown Mgt. After shutting down all HUD sales after Mar.7, they finally got a list of properties up for bid about 10 days ago. The bid cut off date was Wed. 5/5. On Thurs. I looked for bid results and the property list was completely gone. There was a note that all bids through 4/30 were being withdrawn. Didn’t say what happened to the 5/5 bids. An investor who bid on one was told that they had to withdraw the sale because of a “problem” in the system.
Since no HUD sales have taken place since early March,
and I understand that this is pretty much the case everywhere in the InTown 13 or 14 state district, I have to believe that the pipeline is getting very clogged up with unsold properties.
Conceivably, this is going to drive HUD REO prices down. All we can do is keep our collective eyes peeled and stay liquid.
Re: thanks for info on HUD’s New Mgmt/ - Posted by Irwin
Posted by Irwin on May 07, 1999 at 19:51:06:
Dave: Thanks for the overview of the InTown sale procedure. I haven’t seen any of this info on their web site. I have also responded to Jim’s post just above yours. He is in Ill. and I’m in Indiana. What mystifies me is how the InTown folks could take on this HUD contract and not be ready to roll as soon as they were given the go ahead. It looks like they’re trying to learn the business as they go. If they’re actually selling properties in your area, how about posting a follow up report on how the properties are selling. Of course, your market won’t hold true for ours in the midwest, but it might be interesting to know how well (or poorly) they’re doing there.