Minnesota Hud Homes
HUD Homes Investing
September 1, 2010 by Financemyhome · Leave a Comment
HUD homes sales are very popular in the Miami real estate market. Investors are always looking for bargain prices when purchasing real estate. HUD homes Daily All Bidders list is the best way of buying HUD homes for investors. HUD is offering a lot of incentives in order to sell their Miami real estate inventory. The $100 down payment for owner-occupants is a very attractive FHA loan incentive. The FHA 203k program is a good way to obtain money for repairs. The 203k program allows the buyer to combine the cost of repairs and the mortgage. HUD is also giving sales allowances that allow the buyer to pay down the mortgage, pay closing costs, or make repairs. These incentives do not apply to investors.
Daily All Bidders – Investors are not allowed to purchase a HUD home in the initial bidding period. The investor must wait for the property to go into the Daily All Bidder status. When a Miami HUD home does not sell in the initial offer period it goes into a Daily bid list. This is when the investors come in and pick up the property at a discount. Investors try different bids usually starting low and moving up until their bid is accepted. The Daily bid is an excellent way for the investors and end users to buy a HUD home in the Miami real estate market without having to compete in the regular bid process. Investors do not want to get caught up in a bidding war which can raise the sales price. The first acceptable HUD bid is accepted in a daily manner. HUD will reject all offers that do not meet their guidelines and is considered too low.
HUD will not disclose the percentage they will take as the lowest bid. This percentage could be from 13% to 50% or less depending how long the property remains in the Miami real estate market. All Miami HUD homes used to sell on the initial offer period and for a lot more money than the starting bid. It was not uncommon for a property to sell for 50% over the list price with multiples bids offered for the same property. All of this has changed dramatically. Now most of the HUD properties do not sell in the initial period. Most of the Miami real estate inventory is sold in the Daily bids at discounted prices. The net to HUD is usually is now much lower than the original price.
Many investors study the bid results page so that they can determine the lowest percentage HUD will accept. The results also shows the selling office, date of sale, the offer accepted and the net to HUD. All HUD homes are sold in as is condition. An investor must make a bid through a registered real estate agent. There are now more HUD homes available for sale in the Daily bid list. The numbers of HUD homes will increase greatly due to the high number of FHA loans being originated. Investors must consider the Daily All Bidders when purchasing a HUD home in the Miami real estate area.
Hector Lesende is owner/licensed real estate broker in Miami, Florida. Please visit http://www.lesende.com We will sell your home fast. We offer a Foreclosure List. Search Miami Real Estate Blog Search Coral Gables Real Estate.
Article Source: http://EzineArticles.com/?expert=Hector_Lesende
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