HUD/VA Foreclosure Bids wit Little Earnest Money
How do I submit multiple HUD / VA Foreclosure Housing bids without forking over $500 earnest money deposits everytime?
How do I submit multiple HUD / VA Foreclosure Housing bids without forking over $500 earnest money deposits everytime?
Richby40,
If you are trying to by Hud foreclosures that have already taken place, they have specific guidelines that you must follow for your bid to be considered.
I believe that if the property is $50,000 or less, it requires a $500 deposit, and more that $50,000 they require a $1000 deposit. If things go sour (due to your fault), they have specific guidelines in which they will keep your deposit, and it would be in your best interest to read up on their guidelines before sending very many bids to them.
There are some good ones, but not all HUD repos are a good investment, and a lot of people may get caught up in the fact that because they are repos that they are a good deal. Make sure you do your homework, and when you find a HUD property that makes sense, hopefully the $500 wont hurt so much once you see the profit potential.
Best of Success!
BAMZ
BAMZ is exactly right on this one. Something worth noting is that since the VA stopped providing $0 down loans on their REO properties, the prices have come down nicely. Also worth noting with HUD props is that they often will take less than list on them. (at least this is true in my area)
Richby40- In order to use small deposits every time, you must build a relationship with a HUD registered agent that will allow you to provide the deposits when you get the bid accepted or keep only $500 on deposit with them and if you win a bid or 2 or 3, provide the balance immediately. Although, both of these answer your question, HUD bidding agents are not allowed to do either. I have built relationships with agents that will do this for me and I must perform when necessary so they are not stuck because of me. In my area though, all HUD bids deposits are $1000 regardless of what I'm bidding. Good luck, Sharon