patrick.net

These are the homes that the FHA program insured, that have defaulted/foreclosed once again.

John Bailo says

Vain says

These are the homes that the FHA program insured, that have defaulted/foreclosed once again.

So are they owned by the bank, or the government?
If so, should they be extraordinarily value priced?
I still haven’t figured out how to “buy a foreclosure”…is HUD the way?

When a bank for example Bank of America makes a loan under the FHA program (for insurance), the FHA will back up the mortgage. As you can see, many of these loans were actually bad loans. The buyer defaults on the loan, the bank takes the home back, and passes it along to the FHA so that the FHA insurance can pay them back the original amount of the loan.

HUD homes are deeded to the FHA. They prefer to sell to regular owners before making it available to investors.

Hud has a website that lists their foreclosures. Most are not in ideal neighborhoods, in my view.

I've looked into buying HUD houses in the past. Everything I found was junk.

Government owned housing. Hmmm, where have I seen that before?

Houses Under Democrat control.

John Bailo says

Ok, we all agree these are crap homes.
Here’s the thing — the HUD homes that the agent gave me are in terrible shape, need $30,000 in repairs (which HUD will “fund in the mortgage”) and yet there are homes listed in Hotpads that are in the same exact neighborhood, same size, pristine condition — and less money!!
So, I’m thinking — offer bottom dollar.

My first house was a HUD house. Poor condition but very cheap. Worst house on a very nice block in town. It used to be that people who intended to occupy got first crack at bidding, then the bidding opened up to investors later. I would think with so much inventory on the market finding a deal under HUD will be tough. Hud is a pretty typical bureacracy to deal with and isn't very agile with following the market. Check HUD's website for listings, the agents don't usually keep up to date. Little known is that there are other government agencies that also do the same thing as HUD. USDA and Va used to. Searching around might be worthwhile.

Here's the thing...

They are not ALL crap houses. Many start out as houses that show a little wear from the previous occupants.
Most I've seen have had immaculately not even demolished as much as disassembled and absconded.
Angry jilted foreclosed owners, leave holes and tear out pipes and wires, not a prepped job in need of nothing more than new cabinets and appliances.
The banks have no intention of putting those on the market to single family would be owners, when they are stuck with houses of the same spec for 300+K. If the kitchen is in fair shape, they send Guido out in the middle of the night to remove the cabinets.
These houses are then put up for cash only deals, and guess who ends up buying them.

Investors funded by City, State and Federal tax dollar grants to buy these houses for a quarter or a third, of what these houses will sell for with a few thousand dollars in cabinets and appliances.

By the time you see a house that is actually meant for your consideration. at 150K It has been passed over by people that could have bought it for 50K or less, and wouldn't even pay that. It probably needs roof, foundation work, and has tax and court liens.

Like I said...

Houses Under Democrat

Control.

Or Hud control for short.

Tenouncetrout says

Houses Under Democrat
Control.

Did you call them HUR's a couple of years ago?

Tenouncetrout says

Here’s the thing…
They are not ALL crap houses. Many start out as houses that show a little wear from the previous occupants.

Most I’ve seen have had immaculately not even demolished as much as disassembled and absconded.

Angry jilted foreclosed owners, leave holes and tear out pipes and wires, not a prepped job in need of nothing more than new cabinets and appliances.

The banks have no intention of putting those on the market to single family would be owners, when they are stuck with houses of the same spec for 300+K. If the kitchen is in fair shape, they send Guido out in the middle of the night to remove the cabinets.

These houses are then put up for cash only deals, and guess who ends up buying them.
Investors funded by City, State and Federal tax dollar grants to buy these houses for a quarter or a third, of what these houses will sell for with a few thousand dollars in cabinets and appliances.
By the time you see a house that is actually meant for your consideration. at 150K It has been passed over by people that could have bought it for 50K or less, and wouldn’t even pay that. It probably needs roof, foundation work, and has tax and court liens.
Like I said…
Houses Under Democrat
Control.
Or Hud control for short.

What in the world are you talking about? No bank owns a HUD house, HUD does. The FHA pays off the bank and transfers the house to HUD. Investors aren't even allowed to bid until the second round of bidding. Only owner occupants can bid in the first round. You can get a new FHA 203(b) loan on a HUD house if you qualify up to 96.5%. You can also get an additional loan for the cost of repairs-FHA 203(k) loans. You will have to perform the repairs within a specified time frame and have them inspected if you go this route.

If you have actual knowledge of a bank sending people to strip houses (which I seriously doubt) please share it with everyone and report it immediately to your local authorities. What in the world would a bank do with a bunch of cabinets?

HUD slashing advanced notice for inspections on public housing, privately owned apartments

Cutting inspection lead time from as much as 4 months to 14 days

The Department of Housing and Urban Development is about to give landlords and property owners much less of a warning about when it is going to inspect public housing or privately owned apartment buildings that include HUD-subsidized units.

HUD announced Wednesday that it is “dramatically reducing” the lead time between when it notifies public housing authorities and private owners of HUD-subsidized apartments about inspections on their properties and when those inspections actually take place.

According to HUD, its Real Estate Assessment Center currently provides as much as four months advanced notice before inspecting a multifamily property to ensure that it is “decent, safe and healthy.”
But HUD is cutting that lead time from as much as four months to 14 days.

Beginning 30 days from now, on March 22, HUD will notify landlords and property owners 14 calendar days before an inspection is to take place.

According to HUD, its current system allows for property owners to use the lengthy lead time before an inspection to make “cosmetic, just-in-time” repairs to their properties, thereby ensuring that the pass inspection but not sufficiently sustaining proper maintenance throughout the year.

“It’s become painfully clear to us that too many public housing authorities and private landlords whom we contract with were using the weeks before their inspection to make quick fixes, essentially gaming the system,” HUD Secretary Ben Carson said in a statement. “The action we take today is part of a broader review of our inspections so we can be true to the promise of providing housing that’s decent, safe and healthy to the millions of families we serve.”

According to HUD, the Real Estate Assessment Center is currently responsible for inspecting properties owned and operated by approximately 3,700 local public housing authorities in the nation. Additionally, REAC-contracted inspectors assess approximately 23,000 privately owned apartment buildings.

Under the current system, approximately 96% of these properties pass their inspections, but HUD says that that many PHAs and landlords have “grown accustomed to REAC's 20-year-old inspection regime” and, sometimes invest more money and time in passing the minimal inspection requirements instead of providing quality housing, as they are obligated to do.

In the new system, HUD employees and contract inspectors acting on HUD’s behalf will required to provide property owners 14 calendar days of notice prior to an inspection.

If the property owner declines, cancels or refuse to let an inspector review a property, HUD will record a presumptive score of zero. If a second inspection attempt results in a valid inspection within seven calendar days, the resulting score will be recorded for the property in question.

To read HUD’s full notice on the new inspection plan, click here.

Additionally, HUD said that it is planning a series of listening sessions to gather input from the public and HUD stakeholders about a planned pilot program to test "innovative new approaches to inspecting HUD-assisted properties." According to HUD, the initial listening sessions are planned for Philadelphia, Fort Worth, Atlanta, Detroit and Seattle.

https://www.housingwire.com/articles/48233-hud-slashing-advanced-notice-for-inspections-on-public-housing-privately-owned-apartments