Richard Weisser - Coweta Fayette Real Estate - Newnan homes for sale

The Labor Day weekend has traditionally signaled the end of summer. And although the calendar says that there are still a few weeks left of the "official" season, the shift from the summer to the autumn pattern of behavior is in full force.

The kids are back in school, football season has commenced, and cooler weather is returning. It's a time for enjoying the last hurrah of summer as the daylight wanes more and more with each passing day.

And although our first projected frost date in Georgia is still two months away, the gardens are winding down as the annual plants begin to suffer the consequences of "old age." The tomatoes are beginning to wilt and the peppers are covered with fruit that needs to be harvested.

Yet the period between Labor Day and Thanksgiving is my favorite time of year. I enjoy the sights, smells and sounds of the natural world getting ready for the long winter sleep.

It's a time of both preparation and reflection, and everything seems a bit slower paced.

And I like that. I like that a lot!

In Coweta County Georgia, a lot of the real estate work that we do involves the sale of foreclosed properties and HUD homes.

Lately, we have seen a disturbing trend that is driving both agents and their buyers CRAZY. After one of these houses is placed on the market, and the house is shown by many agents, and many bids are offered (sometimes over a dozen bids with most OVER list price) the house goes under contract to:

"Another Government Agency,"

What??? Why was the property placed on the market in the first place if there was no intention of selling it to an outside bidder? If the property was going to be purchased by another government agency, what was the purpose of the whole charade?

Are they allowing agents to waste all of their time showing clients properties, and writing offers so the government can ESTABLISH A MARKET PRICE for the house?

This stinks, it really does. Something needs to be done about it.

But nothing will.

It seems lately that we have a dearth of sellable properties in the Newnan Georgia area. It's not that there are not a lot of houses on the market, as there are plenty! However, there are not enough of the types of homes that buyers are seeking.

Here in Newnan Georgia, that's a decent, move-in ready house for under $100,000. We have qualified buyers, ready to go, but the selection is diminishing daily.

Add to that the fact that most of the best properties that are moving are selling over and above list price. The net result is that many buyers are being squeezed out of the market, as they are at the price limit and cannot go any higher.

The net result is a kind of deadlock, with the only buyers willing and able to purchase unable to find a suitable property.

It's an interesting scenario, and only time will tell how this will all play out.

In the meantime, we'll just keep working hard to get buyers into the home of their dreams!

In Part Six of this series Taking the HUD contract through to closing. we learned about what happens between the time a HUD contract is executed and the time of settlement.

In this chapter, we will discuss the closing or settlement process.

Once the title work has been completed and the buyer's loan is approved, it's time to close on the property. All HUD properties are assigned to a law firm or title agent that is responsible for closing the government owned property.

Buyers need to be aware that the attorney or agent is representing HUD and not the purchaser. If a purchaser desires legal representation, they should engage an attorney to represent them at settlement.

At closing, buyers will acknowledge that the HUD-1 settlement statement is correct. This statement outlines all of the costs involved with the purchase of the property, and indicates which items are paid by the buyer and which are paid by the seller.

The statement also itemizes credits and debits from one party to another, such as a credit for prorated property taxes or bonuses from HUD.

The final reconciliation involves either an amount of "cash from" the buyer or in some cases in which deposits are greater than the down payment "cash to" the buyer.

In the event that a mortgage is obtained, the remainder of the closing involves signing the myriad of documents contained in the "package" from the lender. These documents are not exclusive to a HUD purchase, but are required from the lender on every kind of real estate purchase.

Some examples of documents that a buyer will sign in the state of Georgia are the promissory note, a security deed, tax documents and a waiver of judicial foreclosure. The typical package will require between 50 and 100 signatures or initials!

Please be aware that when a HUD home is purchased, no keys will be passed across the table. It is the responsibility of the purchaser to immediately have the locks changed at their expense after closing. Typically, your real estate agent will open the door in order to facilitate the changing of the hardware.

The closing agent will then ensure that the buyer is provided with a copy of every document, including the warranty deed which the attorney or closing agent will record at the county courthouse before mailing an original to the buyer.

At that time, congratulations are in order. You will have successfully purchased a HUD home, and now it is time to bathe in the "quiet enjoyment" of your very own home!

This installment concludes the series. Previous: How to bid on a HUD home.

In Part Five of this series What happens after you place a bid on a HUD home? we learned the three possible outcomes of placing a bid on a HUD home.

In this chapter, we will assume that your bid was accepted, and that a contract was executed by all parties, and that the sale is moving forward.

The first thing that is substantially different about buying a HUD home than other kinds of foreclosures is that the utilities are not turned on. If you plan on doing an inspection on the property that you placed under contract, you need to get permission from HUD to have the utilities turned on in your name.

In doing so, you will assume all of the risks of anything that could happen as the result of having the utilities turned on, such as an overflowing sink or frozen pipes in the winter time.

You will also agree to turn the utilities off when you are through with your inspection. This becomes the sole responsibility of the buyer to take care of turning the utilities off and on.

If the inspection uncovers defects on the property, they will not be repaired. You have purchased the property as-is where-is and in the condition that it was in when you entered your bid.

In the rare event that a latent defect is discovered of a magnitude that a reasonable person would not expect, there is always the possibility that a termination and release can be negotiated.

In the meantime, you will work with your loan officer if you are getting a mortgage, who, with your agent, will work closely with the closing attorney. HUD assigns a closing agent for each transaction, and if you desire the representation of an attorney you will need hire one other than the closing agent.

When the HUD attorney has completed the title work and your mortgage company issues a "cleared to close," it it time to head to closing for settlement!

Next: Part 7, Closing on a HUD home. Previous: How to bid on a HUD home.