For more information, CONTACT:
Joan Trossen, Realtor® / Broker

(909) 653 . 4341

joni@AskJoni.com
HUD Home Sales - a specialty


HUD OWNED HOMES


Here's The Facts

  • MLSs

  • F.A.Q.s

  • Contact

  • F.Y.I.




    • HUD (The Department of Housing and Urban Development) officiates over FHA (Federal Housing Administration).
    • FHA offers a loan to home buyers who qualify. FHA is not the lender. The choice of lenders is yours.
    • FHA insures to the lender that the loan balance will be paid off if the owner defaults.
    • When defaulted, the owner's loan is foreclosed.
    • Money passes to Lender, paying off the loan buyer owed the Lender. HUD is now the owner.

    • HUD is not in the business of renting homes. HUD lists the homes for sale on a bid basis after obtaining free and clear title.     Check out HUD's Entire US-wide list.
    • Unfortunately for the owner, but fortunate for you, people are defaulting on recently acquired loans and go into foreclosure in SoCA rapidly.

    • For several years during the period of inflated prices, FHA's loan limits were surpassed.
    • Hence, very few FHA loans were initiated in Southern California during this period.
    • The housing bubble burst. FHA increased their maximum loan limits. Lenders offered FHA loans to buyers and properties previously not able to meet the requirements.

    • Important: the listed price is HUD's FHA Appraised Price. No appraisal cost fee.

    • The condition of many of the homes is clean and require little work - move-in condition.
    • Some are fixer-uppers requiring work prior to move-in.
    • Some can be classified as not livable. No FHA financing available. (All cash or conventional loans.
    • All the properties are sold as-is. No warranties or guarantees.
    • An "IE" status on a home indicates that work is needed. A list of costs to accomplish the work is included in the listing.
    • An FHA 203K loan is offered an owner-occupant agreeing to adding the cost of various repairs amounting to over $5000 to the loan amount. Ask me about the particulars of a 203K "fix-it" loan.
    • It must be clearly understood that the costs on either an IE or a 203K will be included in the loan amount - NOT added to your down payment.     Such a deal!!!

    • A loan approval letter is necessary prior to agent (me) submitting an offer/bid. Upon winning the bid, you must fulfill the simple bid obligations within 48 hours.

    • NO FHA FINANCING CAN BE BASED ON AN OFFER OVER its Appraised/Listed PRICE.
    • OVERBIDS: must be "All Cash."

    • Please be aware the bid deadline shown on the HUD Homestore website does not reflect when offers will be reviewed and awarded.
    • Awards may take place prior to the bid deadline.
    • For example: Exclusive Listing bids will first be reviewed on day 10.
    • If there are no acceptable bids, then bids will be viewed on day 11.
    • The process will continue like this until day 30.

    • As an investor, homes are available to you after a 31-day owner-occupied period. They are bid on a Daily Basis.

    • Bidders can request closing costs (up to 3% of the sales price) be paid by HUD.
    • The homes are sold through a HUD-approved agent, me, on a bid on-line basis within certain time limits.
    • Investigation of the website will familiarize you as to the process. OR you can simply call me at 909 653 4341.

    • The financing of these homes is the responsibility of the buyer. I suggest you contact a HUD Expert Lender, Larry Rollins, International City Mortgage (ICM), 909 821 3930.

    • HUD requires very attractive short escrows of 45 days.

    • This on-line bid process is not to be confused with properties being sold at auction.
    • An auction. i.e. ebay, allows you to keep abreast of your competition's bid amount. HUD's system makes competition as fair as possible. It is a closed bid.

    • Non-profits, teachers, police and fire personnel are given the option of purchasing homes in revitalization areas when available.

    Available HUD homes

    Joan Trossen, Broker | Owner | Realtor®
    joni@askjoni.com, [E-MAIL]
    15+ years VERY SUCCESSFULLY SELLING HUD-OWNED HOMES

    909 . 653 . 4341

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