Big Deal (1st One!!)

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I was just talking to a co worker of mine and he said that he has a 3bed room 1.5 rambler house in a very desirable neighborhood that he wants to get rid of asap!!!

Bought for 144k about 6 years ago and is worth around 200k now!!

He said he would be willing to let it go for 145-150k......

According to the seller he has no liens against the property but it is 2 months behind on mortgage payments….

Now this sounds like a deal! I’m going to go take a look at it today after work then do some title research….he is VERY motivated!!!! Any help or advice would be appreciated…

Edit: Just found out it's a HUD.. there aren’t any tricks or crazy stuff regarding HUD's and buying the house from the owner is there?[ Edited by Goose_man on Date 11/17/2003 ]

Comments(14)

  • tortio18th November, 2003

    Wow! This sounds like a good oppurtunity. Please keep us posted on what happens!

  • MIKEDEVALL18th November, 2003

    sounds like a sweet deal!!! You might want to check in your state what the regs are for hud's. I'm not possitive the time limit but almost positive in La. if you purchase a hud as your primary and not investment there is a certain time you must occupy the house. Six years is a long time, your probably safe but make sure. I know for sure there is a program here for single mother where the Gov. gives you a grant towards a home but you must live there for 10 Years!! I'm sure someone here knows if there is a time limit!! GOOD LUCK!!

  • patricc6818th November, 2003

    got to google, type in hud or housing urban development--go to your corresponding state and get the info..it has all types of scenarios and programs including investors..hope this helps
    regards-pat

  • InActive_Account18th November, 2003

    What do you plan to do with the property?

    Will you try to resale it? If so what will it take to get it market ready?

    Will you rent it out? If so what is the market rent?

    Flip it? Do you know investors who can close on this?

  • garcia88818th November, 2003

    good luck on this one. I bought a Hud home 2 weeks ago but thur a buyer agent.

    I would find who has the title from the title company how to proceed with this deal.

    Do keep us post with your success story!

    garcia

  • DaveT18th November, 2003

    Quote:Edit: Just found out it's a HUD.. there aren’t any tricks or crazy stuff regarding HUD's and buying the house from the owner is there?Goose_man,

    Please clarify this statement. Are you now saying that this property is owned by HUD and HUD is the seller?

    Who is on title, HUD or your co-worker?

  • hibby7618th November, 2003

    may be a good "sub. to" canidate

  • SmileyFace18th November, 2003

    I have the same question that Dave T is asking? Hud home or not Hud home. That is a question. ?????????????

  • Goose_man18th November, 2003

    My co worker is on the title.

    He bought it through a HUD program (low interest rate). I'm going to buy it out right via funds from a private source so I'm pretty sure it’s not going to be an issue.

    It will need new carpet and some minor roof repair along with some landscaping. After repairs are said and done I plan to sell it at just below FMV to move it fast.

  • joefromphilly18th November, 2003

    It should not matter if it is a HUD home as the owner is selling a home that he owns. If you were going to be buying through HUD, well then, that is a different story. Then, the HUD rules and regs would apply.

  • classimg18th November, 2003

    Save his CREDIT, take the home 'Subject To' and since you will see him at work, you can discuss the details, sign contracts, etc.

    Eric & Rosa
    [addsig]

  • Goose_man19th November, 2003

    More info..

    He has a 1st and a 2nd. The first has 137k on it and the 2nd has 40k on it. He is only asking me to pay 145-150 and he will hand over the property to me. I’m getting it inspected by a good friend this weekend to ensure there is nothing major wrong with the place.

    Will he owing more than what he’s selling it for going to be a problem for me?

    I really want this to work. If I sell through a realtor and after cosmetic repairs this will put at a minimum of 25k in my pocket and get my business of the ground! If I don’t sell through a realtor I could pocket around 35k!

  • dirtman8919th November, 2003

    Yes, the fact that he owes 177k is a problem even though he is willing to sell it for 145k. He will either have to pay the shortage-which it sounds like he doesn't have-or you will have to try to get a short sale, or buy it for what he owes. The current lenders will not release their liens unless they are paid what they agree to accept.

  • DeeLewis19th November, 2003

    Yeah, he owes 177K, you are going to have to figure out a way to get that second mortgage discounted. OR, you can pay the asking price and offer the home via Seller-Financing and sell a portion of your note to get a nice amount of cash up front to an investor who buys paper. With Seller-Financing, you may be able to up the price a little. But there are many ways to skin a chicken.

    Dee[ Edited by DeeLewis on Date 11/19/2003 ]

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