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NoSoup · 04-30-2009, 08:42 PM

Well, take this with a grain of salt, as I lend in Wisconsin, but...

As far as the asking price is concerned, the beauty of dealing with a HUD house is that it isn't being sold by people - noone is going to be offended by the initial asking price. Although I'm basing this solely off the limited knowledge I have of the Detroit area market, they are likely doing what they can to dump the property and get it off their books - low balling them should be standard procedure. However, know that there is risk involved - if someone happens to put an offer in at the same (or similar) time, you might lose the house. That said, absolute worst case scenario, even if you offer them a ridiculously low amount (like that $45,000 or whatever) the worst they can do is refuse the offer. At that point, providing noone else has bid on it, all you'd have to do is resubmit. However, I would imagine that they would end up countering, if they are trying to get rid of the property.

As far as what your realtor recommends, they might be familiar with the amount the HUD agency is generally willing to discount in the area, and that's what they are basing their advice on. However, regardless of what they say, offer only what you think is fair - don't go over, you don't want to end up regretting it.

As far as POC, you might be able to avoid it, but you may not as well. Often times, when dealing with traditional sellers, you would be able to offer a higher price and have them pay your costs - effectively rolling them into your loan. For instance, you make an offer for$50k, they come back with $55k, you offer $60k with the condition that they put $5,000 towards closing costs.

Dealing with HUD, though, it may be different - check with your local HUD office to see if they are willing to credit you costs. I believe it varies state to state. As far as the disclosure is concerned, everything appears to be reasonable, though many of the fees vary greatly in different markets - you may want to check with a local banker/broker to see if any of them are outrageous.

Either way, Good Luck! Let me know if you have any more questions

04-30-2009, 08:42 PM	#2 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	Well, take this with a grain of salt, as I lend in Wisconsin, but... As far as the asking price is concerned, the beauty of dealing with a HUD house is that it isn't being sold by people - noone is going to be offended by the initial asking price. Although I'm basing this solely off the limited knowledge I have of the Detroit area market, they are likely doing what they can to dump the property and get it off their books - low balling them should be standard procedure. However, know that there is risk involved - if someone happens to put an offer in at the same (or similar) time, you might lose the house. That said, absolute worst case scenario, even if you offer them a ridiculously low amount (like that $45,000 or whatever) the worst they can do is refuse the offer. At that point, providing noone else has bid on it, all you'd have to do is resubmit. However, I would imagine that they would end up countering, if they are trying to get rid of the property. As far as what your realtor recommends, they might be familiar with the amount the HUD agency is generally willing to discount in the area, and that's what they are basing their advice on. However, regardless of what they say, offer only what you think is fair - don't go over, you don't want to end up regretting it. As far as POC, you might be able to avoid it, but you may not as well. Often times, when dealing with traditional sellers, you would be able to offer a higher price and have them pay your costs - effectively rolling them into your loan. For instance, you make an offer for$50k, they come back with $55k, you offer $60k with the condition that they put $5,000 towards closing costs. Dealing with HUD, though, it may be different - check with your local HUD office to see if they are willing to credit you costs. I believe it varies state to state. As far as the disclosure is concerned, everything appears to be reasonable, though many of the fees vary greatly in different markets - you may want to check with a local banker/broker to see if any of them are outrageous. Either way, Good Luck! Let me know if you have any more questions __________________ I have an aura of reliability and good judgement. Just in case you were wondering...