HUD Forms – Why don’t they do it like you do it?

July 23, 2010

I was talking to an agent from another area.  His team had recently gotten a bid accepted for a client.  But he said that putting together the forms was a chore.  I told him to take a look at my website and click on FORMS.  All of the forms needed for Indiana HUD Home bidding are right there in one PDF file.  And there is a checklist showing the list of forms and the current dates for each form.

The section on FORMS is there for your convenience.  Don’t you love it when you put a bid on a home and the agent shoves page after page of forms for you to sign?  OK – go there now.  Print out the forms (a 14 page PDF file) and look them over.  You have time to review those forms in advance.

Now for the answer to my friend’s question.  I don’t know why they don’t forms the way I do.  My clients who buy Indianapolis HUD Homes get those forms in an easy one file format with a checklist.


HUD Homes – Change is coming

June 19, 2010

There are changes coming in the way HUD Homes are sold.  HUD has recently awarded new contract that separate out the management and marketing functions into separate contracts.  In Indiana this means that there could be six field services companies and three asset managers handling HUD Homes.  Until July 31, HMBI will continue its function as the only M&M contractor in the state of Indiana operating out of its Chicago office.

In the past when there have been M&M contractor changes, there has typically been a period of transition time when limited numbers of HUD Homes were available on the market.  Prior to HMBI, M&M companies covering Indiana were InTown Management Group and Golden Feather Realty.  Each company has different policies in how they handle the sale of HUD Homes.  With three different asset managers operating in Indiana at the same time, we might expect to see approaches that vary according to the company responsible.

What does this mean for HUD Home buyers?  If you are wanting to purchase a HUD Home, everything should be the same until the end of July.  I would be happy to work with buyers who are qualified and serious.  Starting in August there is the possibility of limited availability of HUD Homes during the transition.  We expect to know more in the coming weeks.

Property Condition Reports

October 9, 2009

One advantage of HUD Homes over most bank-owned foreclosures is the property condition report.  HUD actually has somebody go through the home and create a 20+ page report disclosing defects that they are aware of.  However they do say that the report is not a warranty, but only for informational purposes.  The property condition report is a good start.  It can alert a potential buyer to problems.  But it is not a substitute for the buyer getting their own inspection done after HUD has accepted their bid.

First, with the buyers present for their own inspection, they know that the inspector will inspect the attic and the crawl space.  I have seen problems such as mold in a crawl space and fire damage in an attic that were missed in a property condition report.

Second, the buyer can get an inspection that is done with utilities turned on.  As an example, the person doing the property condition report will use a compressor to pressurize the water lines.  That will show some problems, but it could also miss some.  In one home that passed the pressure test, I observed a line that had frozen and busted.  It was probably located downstream of a valve that was turned off for the pressure test.  There is a drawback to depending on a report where the plumbing, electric and heating and air conditioning systems are not functioning.

Third, it is helpful to talk to the inspector rather than just read a report.  If there is an issue, the inspector might be able to give the owner an idea of how serious the problem is or how quickly it might need to be fixed.

Bottom line:  The property condition report is great, but not perfect.  One of the reasons I like showing HUD Homes over bank-owned foreclosures is the property condition report.  If you understand its limitations, it can be a great tool to help a buyer decide about a home.

Fishers HUD Homes

July 3, 2009

In looking over the new HUD listings for July 3rd, there are several of these located in Fishers, Indiana.   Some weeks there are almost no new HUD Homes listed in Hamilton County.  Other weeks there are quite a few.  It looks like this week is a great week to be looking at HUD Homes if you are interested in Fishers.  Here are some things to remember:  HUD will only consider bids from owner-occupants who intend to live in the home during the first ten days that it is listed.  Also you need to be pre-qualified BEFORE bidding.

With so many people traveling or involved in special activities for the holiday weekend, this might be a good week to be looking at a HUD Home.

If you are interested in getting updated about HUD Homes or foreclosures in the greater Indianapolis area, including Hamilton County, call me on my direct number at 317-709-2537.

Read this first

June 5, 2009

This site specializes in Indianapolis foreclosures and HUD Homes.  Be aware that any homes featured in this site are but a tiny percentage of the homes that are available.  And of course many of the HUD Homes and foreclosures will sell very quickly.  So it is best to look at this site as a sampling of the types of homes that you can expect to find when looking at Central Indiana HUD Homes and foreclosures.  Some of these might have already sold.  But there are others, and there will be more listed every week.

PS – For convenience of our clients, we have a form packet with forms used to purchase a HUD Home in Indiana.  Click on the FORMS tab for more information.

Prices do get reduced

February 27, 2009

HUD is very aggressive about reducing prices on their homes.  If it hasn’t sold after 5 or 6 weeks, down goes the price – often by ten percent.  And they will consider bids for less than that reduced price.

Here is an example: a north side condo a short drive to St. Vincent Hospital area.  It has been reduced from $125,000 to $112,500.  Click here to see the video preview.

Hamilton County HUD foreclosure at $140,000

February 21, 2009

Hamilton County foreclosure in Fishers IndianaLooking for a home in the Hamilton Southeastern School District?  This Fishers, Indiana HUD foreclosure is being made available to owner-occupants for a list price of $140,000.  Real estate  investors may bid on this home after 3/1/09 if no acceptable bids are received from an owner-occupant.  Built in 1999, it has just under 2000 sq. ft. with 3 bedrooms, 2.5 baths.  The square footage does not include the attached two car garage.

Address is 9944 Commonwealth Dr. in Fishers.  To get more information about this home contact Dan Rosenbeger of Harvest Realty.  The direct number is 317-709-2537.