Homebuyers in the market right now will tell you the crowd of buyers and multiple offers are creating a challenge to purchase a home.
Those in search of distressed homes owned by the U.S. Department of Housing and Urban Development are not immune to this supply-and-demand situation. In fact, recently one HUD home in San Diego attracted 100 offers within 10 days.
In this market, because it’s so competitive we are seeing buyers just happy to get a home while being less selective on location and condition. But in its latest new reports, the uptick in homes owned by HUD may create opportunities for patient home buyers.
Experts project that over the next two years, as lenders steadily work through a backlog of foreclosures delayed by foreclosure-processing reviews, the supply of these HUD homes will increase significantly.
In the Inland Empire of California, HUD-owned home sales are increasing significantly.
HUD homes are back because FHA financing went away with the ‘creative’ financing of the 80/20 loans and now with the increase of FHA financing, these government-backed loans go in default, HUD will pay off the mortgage, obtain the deed and re-sell the home.
Even though they may be in poor condition, HUD homes are often appealing because of the discounted selling price and there is financing to fix the property up are becoming more and more attractive to a competitive market.
In this tight market, it is important for buyers to understand the process of HUD-owned foreclosures and the best practices of making a good offer is to work with an approved Broker and with an experienced direct lender that versed in this type of financing.
As of February 28, 2012, HUD had 39,442 properties nationwide in its REO inventory. Of those, 20,536 had pending contracts on them, according to a source at HUD, while another 9,505 properties remained on the market.
Email me or call for a list of HUD homes available in your area and we can discuss the pre-approval process to purchase one of those homes. I look forward in hearing from you.
I have been a part of the Mortgage Industry since 1988 and have witnessed the ups and downs for 25 years. When refinancing or purchasing a home this is what you need to have on your side; experience, professionalism and top customer service. I am licensed in the state of California to perform the duties as a Mortgage Professional and I uphold the highest level of customer service and integrity.