Hud Properties
This month two of my bids were accepted by Hud. The Appraiser told the bank that the bath rooms were not functional. The bank refused to finance stating that the bath rooms have to be functional. I can not invest any money on the property which HUD owns. What do I do ? Any quick guidance from anyone. sayana :roll:
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Find a new lender. You did apply for investor financing rather than owner occupant financing, didn't you?
Hi:
Yes, I had applied for income property loan. The closing has not yet taken www.place.The property thus still belongs to HUD and I do not want to invest anything there as it is not mine.
sayana [ Edited by sayana on Date 10/04/2004 ]
The problem is that if you don't complete settlement, you forfeit your deposit for each HUD property.
If you are not using FHA insured financing, then I assume that your current bank is not very investor oriented. You need to find another lender for investor financing which recognizes that some rehab may be required to make the property livable. Not all lenders will require a certificate of occupancy as a condition of the investor loan.
Hi:
Thanks for the response.
You are right. That bank is a little too
stringent for investors. Finally I did find another lender and they have promised to process the loans. I am keeping my fingers crossed.
sayana