This is an area where you would talk about anything you like. Why do you do real estate? What about real estate do you love?
U.S. Department of Housing and Urban Development (HUD) homes are residential properties that range in size from single family homes to 4-unit multi-family properties and have been acquired by HUD as the result of a foreclosure on a Federal Housing Administration (FHA) insured mortgage. HUD homes give individual homebuyers and investors an interesting buying opportunity. It should be noted, they do come with slightly different requirements than other property types on the Xome auction platform. In order to speed up the closing process, here are some things to know:
Steve Slay is a HUD-registered agent and has an existing HUD NAID#
Winning bidders must select a HUD-registered title company with an existing Title ID#.
Earnest Money Deposit (EMD) requirements: Typically paid in the form of a wire transfer or certified check, earnest money is deposited into the title/closing company’s trust or escrow account where they are held until the sale of the home has been finalized, and then applied to the buyer’s down payment. For HUD properties, the amount to be submitted with each winning bid is as follows:
Owner Occupants and Investors:
Purchase price of $50,000 and under: $500
Purchase price of $50,001 and over: $1,000**
Winning bids on vacant lots require 50% of the purchase price
**Properties in CO, DE, GA, MD, NM, N. TX, PA, UT, VA, Washington DC and WV with purchase price of $250,000 and over: $2,000
Good Neighbor Next Door (GNND) programbidders: 1% of the purchase price, but no less than $500 and no more than $2,000.
Extension requirements: In order to get an extension with HUD homes you will need to make sure all your fees have been paid in certified funds, made payable to HUD, and no later than 5 days prior to the original close date. If you do decide you need an extension it’s important to know there could be a cost to this–when it’s charged, the cost is based on the purchase price of the home and must be submitted in increments of 15 days at a time.
If you are using financing, you should verify with your lender prior to the auction that the buyer’s premium can be included in the loan.