Over the years I have been the buyers agent for several homes in the Treasure Valley. The first thing you want to do is make sure your broker has signed the agency up to sell HUD homes. The first time I sold a HUD home I had to refer my client out and lose a significant portion of my commission check. It also makes the deal stranger since you know all the in and outs of the deal and the other agent doesn’t. Talk to your broker or the office manager and ask for the HUD number and check to make sure it is active. It needs to be renewed every year. Being the government your brokerage will not get any notice when it needs to be done….
HUD homes are government owned homes that have been foreclosed on but the government has insured them when to original loan was taken out.. OH no ! Unfortunately I just broke some rules about selling or talking about HUD homes. We are not allowed to use the words repossessed, REO, distressed, foreclosed when describing these homes because HUD feels that these words have negative connotations . We now have to use the words HUD owned. This also means that the Intermountain multiple listing service had to add a separate category called HUD homes. This is very annoying because it one more parameter you have to search for.
Now those of you who no me know that I am a rare breed. I am a Democrat in Idaho who has run for Congress. If anything ever turns me into a person who thinks the government is malevolent it will be selling HUD homes. HUD makes the rules for everyone else but does not seem to feel the need to follow them. Someday I will blog about this….. They will not fix things (even things to inspect the property). They set their own timelines that are difficult for the loan officers. They make you rush for brokers signatures and make you send docs in expensive Fedex packages. When you make a mistake they threaten to cancel the contract. The mistake can be forgetting to get an initial. I must admit to being paranoid by now. To my credit the contract that I have pending was perfect the first time. You have to be on top of things and be your buyers advocate.
So obviously I do not like HUD or selling HUD homes…. Why do I do it? Because it gives my buyers a chance to get into the housing market with FHA loans. Also HUD, Fannie Mae and Freddie Mac all have a home owner first look programs. That means that my buyers are only competing against fellow owner occupants and not investors. This is a huge advantage to first time home buyers. HUD homes are also often competitively priced with FHA financing (for insurable property). HUD bidding is easy and everything else will seem harder then it needs. I work for my buyers and not my comfort. It is important to me that my buyers get a home that works for them and I am willing to work hard and make my loan officers to work hard to make this happen.
I truly believe that part of the American Dream is to own your own home. It makes us as individuals, the community and our country stronger. Part of helping my clients achieve this dream is to offer them as many homes available in my community.