When Buying a HUD Home.....Buyer Beware!

The word on the street is that HUD is getting ready to change how you are allowed to buy HUD Foreclosures!

Supposedly, on October 28, 2010 the new HUD contracts will be in place with the companies that will be responsible for listing the HUD Foreclosures. This may be good, or it may be bad. In many regions the HUD listing agents do a poor job of marketing the HUD Foreclosed Properties so it is quite possible that this will get some better agents involved.

The bad changes are that while for now, HUD will still pay closing costs for buyers, effective October 28, 2010 HUD will not pay for any Closing Attorney or Settlement Company other than HUD's appointed Settlement Attorney/Settlement Company. Why is this a big deal? By law, no seller can make or allow a buyer to sign away his or her right to pick their own Settlement Attorney or Settlement Company. So HUD is going around the law and simply not allowing the closing costs for another Settlement Attorney or Settlement Company to be paid out of the Seller paid concessions. The downside for the Buyer, HUD is financially punishing the Buyer for wanting their own representation on a property that has gone through a Foreclosure and who knows what else!

I would never suggest that a Roanoke Valley Home Buyer use the seller's Attorney! I sure as heck wouldn't use my ex-wife's attorney in a divorce agreement! Buyer's need their own Attorney conducting their own Title Search and should NEVER depend on HUD's!

When HUD's chosen Settlement Company conducts a closing on a Roanoke Valley Virginia HUD Sale, it is not an Attorney that shows up, it is not a Licensed Settlement Agent, it is a Notary Public! The Notary Public refuses to even turn the pages, either the agent or the Buyer has to turn the pages! If there is a title defect that the title insurance is not going to cover, there is not anyone to explain this to the Buyer.

When Buying a HUD Home.....Buyer Beware!