I found a HUD condo, asking for $70k.

Built 1980, 2bed/1bath, around 1000 sq feet.

In the best school district.

Monthly HOA fee $176, property tax $900,

I found out the neighborhood sale around $95k.

The HUD will repair carpet, HVAC system, and others which around $3500. I will put tiles in bathroom and Kitchen, maybe the appliances and cabinets.

THe loan amount balance is $58k.

SO should I just bid for $58k for HUD to cover its cost?

Or can I bid lower than the loan amount? After the escrow, the condo still need paint, carpet, kitchen and bathroom makeups. But won't cost that much.

Anybody any advices?

Thanks in advance.

The loan balance is irrelevant; what HUD is asking is what they're looking for.

You can bid whatever you want; whether you will be successful or not is another story.

I believe all HUD bids have to be submitted through a real estate broker. I haven't done a HUD sale in so long I'm not sure if that's still the case or not.

If it is you need to get with a broker that does a lot of HUD deals so you're sure they know what they're doing.

You do need to use a HUD registered broker with a NAID # in order to place bids.

Also, HUD is looking for an offer very close to asking price. There is a formula they go by and they will not look at offers that are lower than the formula answer. Look for an agent who has had experience with selling HUD houses.

Hud properties you have to use an agent.
Are you wanting to live there or hold for investment?I work with hud properties.

If it's an investment you have to wait the first 2 weeks it's open before you can buy it,but can submit a bud before that period so when the owner occupant period expires your offer is the first they look at.You need to contact an agent if you are SERIOUS about purchasing a hud property.

Before agents submit an offer the good ones will call hud and give them the file number to make sure it is not all ready under contract.I have called before where that morning hud had already accepted an offer ont he property,saved my buyer and myself alot of wasted time.

The formula changes depending on on market conditions and the length of time the property has been on the market. It's not a static percent or number.

How long has it been on the market?

If it's a really nice property and as you say, it's in the best school district, don't be surprised if it sell for more than the asking price, as others will bid with the intention of outbidding other prospective purchasers.

I don't know what the rental market is like in that area, but you can rest assured that an investor will be running the numbers to formulate a bid. NOTE: If it's past the owner occupant phase & now open to investors.

Wendy:

I found the property that you are talking about (if it's in Apharetta) and it was listed on 01/17/07. It's still in the owner occupant phase, not open to investors until the 29th.

You need a HUD registered broker to assist you. Hopefully, the following forum member in the Apharetta area can assist you:

Greg Sargent
Broker
The Neighborhood Company, REALTORSŪ
www.NeighborhoodCompanyRealtors.com

Be sure and let him know that you found him here.

Update.

I have my agent bid for me for the condo I mentioned week ago for $10k less than asking price of $70k which will make Hud even with.

Now she came told me we lost. Somebody else bid $72k for that property.

I just can not believe myself. In this slow market,
somebody willing to bid on this property over the asking price, and not mention they probably will spend $10k to fix the property.

I see many HUD properties sell at over asking price. Frequently bidders are aware of competition for a certain property and will bid over in an attempt to assure success. Sometimes it works, other times it doesn't.

Sorry you missed out, but.. you can't say I didn't warn you!

Best of luck to you though, in finding a condo/home!

Hud LOVES the bidding process as it keeps people guessing and makes them submit there highest and best offer for the property.

Hud only cares about the cleanest contract,with the least contingicies,with the highest NET to hud,sales price is irrelevant.

Atlanta is not a down market,the lower you go down the price point the higher pool of competition and number of buyers there are to purchase that property.If it was worth 95k you could have offered 73k,lived in it a fixed it up as you went along and still had a good deal.

Your agent should have counseled you on what to do and your options.

Sales Price is irrelevant, Net is what matters,
nothing more. One buyer could be paying all cash with a net $1.00 less than the person going CNV financing and the CNV will get the property. They all are sold in AS-IS condition - No repairs prior to the COE AND no contingencies -

From my experience with HUD owned properties, they are only asking what the defaulter owes. I have never put in an offer for a buyer under asking that was accepted. I always ask the buyer "How serious are you about buying this property"? If they say not too serious, I usually suggest that we continue looking. You will notice at times that some of the HUD owned properties go on a daily bid process. This is simply because they did not receive an acceptable bid by close of the bidding date. I find most of my properties on:

www.firstpreston.com
www.bidselect.com

The hardest part about HUD owned properties is the paperwork and finding insurance on property no occupied in while.

I hope that I answered some of your questions.

Hud uses different servicers based on the region.

For Ga the main servicer is www.afrhud.com

HUD does use different servicers (M&M contractors) based on the region. However, some things are pretty consistent. The winning bid is always the highest net amount that is above HUD's minumum (and they don't tell anyone what the minumum is). I've seen them turn down bids at 98% of list price, I've seen them accept much, much lower.

They do seem to pay attention. If they've been consistently getting full price in your market, then that's what they'll be looking for. If it's an out of the way property that has reduced in price a couple of times, they get a more flexible.