A few weeks ago, an investor client of mine put in an online bid on a HUD home in our area. We won the bid and were very happy.
I am a newbie with regard to HUD sales, so part of the problem is my ignorance, of which my investor is happy to work through with me.
We made an ALL CASH offer on a home and wanted to close in 2 weeks. To add further complications, the home is on leased land (Indian leased land).
I have been trying to get escrow information out of the title company that was selected by HUD (of course they are out of town) and they know nothing.
Finally I called the HUD representative in Arizona and they told me:
1. They didn't care if my client was paying all cash. HUD simply cannot close a home in less than 45 days.
2. Once they review the contract (which has been on their desk for over a week) they will determine the corrections that need to occur and send a corrections notice. (This might happen in the next few days.)
3. Then an all new contract must be sent in which gets reviewed, and then re-reviewed...and then, ultimately signed.
4. Only from THAT date does the 45 days start.
Jeez! I have already turned on all the utilities and done all my inspections. We're ready to close. It seems like a real shame that HUD can't react faster.
This got me wondering: Why does everything have to be so complicated? Even straightforward ALL CASH deals aren't straightforward anymore...
Posted By: Christianne Gordon - Northern Nevada Real Estate Agent - Realtor
with RE/MAX Realty Affiliates, specializing in Carson Valley Real Estate and Northern Nevada Real Estate.
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Northern Nevada agent serving Gardnerville, Minden, Genoa, Carson City, Dayton, Reno, Sparks. Residential, investment, land & commercial. Seard the MLS FREE at NevadaHomes.ListingBook.com!
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Best of luck getting this HUD property closed! I hope your cash buyer can hold on for at least, what, 45 more days!
Christianne - Your tax Dollars at Work!
Welcome to the world of no common sense. HUD has always been that way. They aren't going to change, so get used to it if you want to sell their properties. :(
It's been a long time since I had an easy straight forward transaction. Just hang in there.
No wonder government costs so much! If you've a tight contract sit back and enjoy the ride.
Nothing is easy or straight forward when the government is involved, you should know that! Look how long it takes for short sales, especially on the banks that were taking over by the FDIC, you are looking at six months at a minimum!
I have an investor a husband and wife team who called to see a house, they do this often so I didn't think to much about it until I realize it is a HUD house!! I told them " I run from HUD homes but because I like you two so much I will work on this sale for you" The basement was full of mold, the roof needed replaced and the front door was boarded shut b/c there was no longer a front door on the house.... we didn't write a offer which didn't bother me one bit!! I've had my share of difficult closings but HUD homes I would happily walk away from... Karol
It never fails, when I get a HUD contract they never close on time. We have to ask for an extension and it is never our fault but they want the buyer to pay for extending. So we take the time to ask for the extension and send the money to them. They turn around and send the money back to the buyer. Geniuses!