HUD homes and their new policy. I did not know this.

It has been a while since my last HUD transaction. I have a client that is ready to buy. I met him at an Open House last year. So out of the blue my loan officer neighbor calls to let me know the buyer is approved. Hooray!

I spent two days showing HUD homes to him. We made two offers. He loved two properties. As I was filling in the data online, I noticed on the sideline that it is now required that the buyer pay out of pocket if the offer price does not appraise. HUD asked for $68K for a two story built in 2005 and has over 3000 sq ft. The home is in great condition. That was a steal for the lucky winner. We offered $75K and the winner offered $78K.

The other offer is still alive. Deadline is not until the 21st. My buyer is now concerned and rightly so. He wants to make another offer for the second property. However, he wants to make sure there is no out of pocket if he goes higher on his offer. I assured him that what HUD wants is low for that property as well. If he were to offer $10K over, it still would appraise and he would not have out of pocket.

This home is in very good condition for an older home. Wish us luck.

Angelia Garcia

Francesca Realty LLC

214-912-9390