Deanne Olivas

When purchasing a HUD home, there are misconceptions to replace with facts and advantages to consider. The following is information about the purchase of Arizona HUD homes.

First, exactly what is a HUD home? When a home is purchased with a FHA (Federal Housing Administration which is a sub-agency of HUD) insured loan and the borrower defaults on the loan, the lender may file a claim against the FHA insurance fund and convey ownership to HUD who then sells the home at market value to get back some of the loss from the foreclosure.

One misconception I have heard is that HUD homes are always in poor condition. I find that just like bank owned or short sales, HUD homes can be very clean and well taken care of or a disaster or anywhere in between. One of the advantages to a HUD home is that before HUD homes are listed, HUD orders an appraisal and property/pest inspection of the home. Anyone can go to the HUD website http://www.mcbreo.com/and read the report to see the condition of the property before viewing it.

If the property inspection determined that the property needs repairs but less than $5,000 and the buyer is using an FHA insured loan, for the home to be eligible for the FHA loan an escrow repair is established to cover the costs of the repairs to the home. The costs of the repairs are included in the loan amount and repaid by the borrower as part of the house payment.

It is advised that a potential buyer conduct their own home inspection by hiring a competent inspector. HUD homes are sold in "as-is "condition and HUD makes no warranties or quarantees about the condition of the home and will make no repairs. This is also the case in the purchase of a lender owned foreclosure property.

Another advantage for owner occupants (person that will live in the home as his or her primary residence within 30 days of the close of escrow) who are interested in purchasing a HUD home is that during the first 10 days a HUD property is listed to the general public, there is no competition from investors. Bids from Owner Occupant Purchasers only are accepted. All bids placed by Owner Occupants that are submitted during those ten days are opened on the 11th day and are considered as though they were received simultaneously. If there is no winning bid during those ten days the bidding is opened to include investors.

Another misconception is that HUD provides loans to persons who would not under other circumstances qualify for a loan. HUD does not provide financing for its properties. Before a person can place a bid on a HUD home they must be pre-approved for a real estate loan or have proof of sufficent cash to purchase.

A great advantage for those who do not have the downpayment required for a typical loan is that a buyer can purchase a HUD home for as little as $100 down. It is important to discuss the costs with an experienced lender and the price to bid with a HUD approved agent. Before a bid can be submitted, the buyer must have on deposit with the real estate broker an earnest deposit check. If the purchase price is $50,000 or less the required check amount is $500. If the purchase price is more than $50,000 the check amount is $1,000. Any unused portion will be reimbursed to the buyer at close of escrow.

The advantage of the sealed bid process is it eliminates many of the hassles associated with the typical lender owned or preforeclosure transaction where bidding wars and long waits are common. If during the first ten days of owner occupant bidding, no offer is accepted, bids are reviewed daily and the bidder with the winning bid is notified the following day. If more than one acceptable bid is placed, the bid with the highest net amount to HUD wins the sale.

If you have hesitated about considering purchasing a HUD home, realize that these properties open up another opportunity for purchasing a home at an afforadable price. With the assistance of an experienced HUD approved agent and a lender who understands the process, replace the misconceptions with facts and consider the advantages of purchasing a HUD home.

The process for buying a HUD home is different from a normal home purchase. Access to view HUD homes and place bids is restricted to a HUD approved real estate agent. For a partial list of AZ HUD homes http://www.eastvalleyphoenixhomes.com/hudhomes.html).

To get a list of all HUD homes that meet your criteria or to discuss if a HUD home purchase would be in your best interest, call Deanne Olivas, an approved HUD agent, at American Allstar Realty 480 452-5567.

The place was Power Ranch in Gilbert, AZ. The day was Halloween, October 31, 2009. The excitement was a Haunted House.

The price of admission was to answer one question. "Do you want it a little scary, medium scary or real scary." Then the doorman would yell to those inside. "Medium scary for adults" or "little scary for children".

There were strange sounds coming from inside. Screams, laughter and the sound of a chain saw (that must have been the real scary part). I was standing where I could hear the comments of the people coming out. Everyone said it was really something, amazing, that alot of work had been put into it, that it was great idea.

The idea come from a 16 year old young man. A neighbor said he came to her with the plans on paper weeks ago. He recruited his Dad, his grandfather, his brother and sister, neighbors and friends. He gathered all the materials he needed. Quite an amazing sixteen year old. Perhaps he is on his way to being an successful entrepreneur or famous director of scary movies.

New Advanced MLS Home Search for Phoenix, AZ and surrounding cities allows you to search with many new options such as:

search by school or school district

search only bank/lender owned or only short sale/preforeclosure properties

search by a _% drop in price in the past _days.

The typical search criteria is also available such as city or community, price, number of bedrooms, size of home or lot and year built. The searches are real time and free with no registration. The properties are mapped for you and you can set up daily updates of new listings meeting your criteria and save your favorites.

To sucessfully purchase a home in todays fast moving market takes up to date information. The following link is your opportunity to gather information on available homes for sale in Phoenix and surrounding valley cities.

http://www.eastvalleyphoenixhomes.com/search.html

We all know home sales prices vary per city. Here is a summary of the approximate average sale price per square foot this month of homes sales in the Phoenix east valley.

Gilbert AZ $98 per sq ft

Chandler AZ $106 per sq ft

Mesa AZ $86 per sq ft

Queen Creek AZ $64 per sq ft

Scottsdale AZ $179 per sq ft

Tempe, AZ $121 per sq ft

Apache Junction AZ $74 per sq ft

Fountain Hills Az $152 per sq ft

Gold Canyon AZ $120 per sq ft

Maricopa AZ $49 per sq ft

Sun Lakes AZ $124 per sq ft

Data from The Cromford Report

If you would like information on purchasing a home in the east valley Phoenix area, I can assist you. I have experience in assisting buyers with HUD, bankowned, preforeclosure(short sale) and traditional seller purchases.

If you have ever driven 89A between Sedona and Flagstaff you know that feeling of wanting to stop and stay awhile. Well, we finally did! We were lucky enough to get 4 nights at the Forest Houses Resort on 89A, 10 miles from Sedona, 17 from Flagstaff and right down in the canyon with Oak Creek and giant Ponderosa Pine and Douglas Fir between us and the highway. It isn't easy to get reservations there because first priority goes to the people who stayed there the year before and they hardly ever decide not to come back. But with some flexibility and diligence you can get an opportunity to wind down and really enjoy the tranquility and beauty of Oak Creek and the canyon.

There are 16 1-5 bedroom houses (most are separated by pine trees and the mountain terrain although a couple are duplexes). All are unique in design and built over a period of about 40 years by the same man using materials native to the area (rocks, boulders and log beams). All are absolutely gorgeous with a flagstone patio, balcony overlooking Oak Creek, more private surroundings deeper in the forest, or a huge stone fireplace. I could not pick a favorite-loving them all for different reasons. The one we stayed in was called The Barn House.

Although it is a quick drive to Sedona or Flagstaff, there seems to be a quietness that draws you to perfer a nature walk along the creek or sitting on your patio birdwatching (we shared the grass just beyond our patio with a family of robins).

Beware- there is no TV or phone reception. Being a realtor my withdrawals lasted longer than most, maybe. But after awhile I didn't hear any more phantom rings and let myself relax knowing there were people back at the office taking care of business.

Next time you want to really relax check out www.foresthousesreort.com