Home Buying in Clementon>Question Details

Cpunkin, Home Buyer in Clementon, NJ

Foreclosures, hud.....203k..are these one in the same? Do I need to speak to a realtor who is specialized in HUD?

Asked by Cpunkin, Clementon, NJ Thu Jan 13, 2011

I am interested in a house listed as 203k eligible..I need to know the process besides getting pre-approved for a loan...does this process take a long timeor is it better to find a home that doesnt need fixing up...I just need some kind of guidance..

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No, these are not the same things. Yes, you need guidance and you're NOT going to get enough guidance in the Q&A forum because you need someone to answer YOUR specific questions. Pick up the phone and call a local agent, it's that simple. We don't bite.... we're here to help.

I've personally answered several of your questions over the past 10 months.... we've done all we can do in this forum... pick up the phone and talk to a real person who can really help you move forward.

I hope that's helpful... if so, click the "thumbs up" below,

Joe
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Broker, GRI (856)374-2800 x106
Serving Gloucester Twp, Washington Twp & South Jersey Real Estate Markets
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1 vote Thank Flag Link Thu Jan 13, 2011
Yes, you need an experienced agent! 203K loans have a very detailed process, such as specific licensed contracter estimates itemized. The appraisal is done in two-fold, 1st for the current value, 2nd for the value with work completed, which determines the amount mortgaged for the renovation. This work needs to be completed within a certain period of time. It is also essential to have a very knowledgeable lender involved, as you will be assigned a case worker to assist in the process. If I can help, please contact me.

Janet Larsen, Broker/Associate
Remax Connection
856-261-6910
njrealtorjan@comcast.net
Web Reference: http://www.njrealtorjan.com
0 votes Thank Flag Link Mon Jan 24, 2011
It is essential that you use a REALTOR who has experience with HUD owned homes as compared to others. HUD owned homes are a special process and an error with that process can lose you the home. Also, be careful with 203K loans. Many will use 203K and StreamlineK loans interchangeably, but they are different and have different requirements; you have to be extremely careful with these.
Getting a house that needs fixing up would depend on how much fixing up it needs. If there is a minimal amount, then the StreamLineK is the way to go.
I don't know if I was able to fully answer you questions, so if you need further help I am always available to answer any questions and to help walk you through the process.

Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Office: 856-795-3111 x263
Direct: 856-318-9098
Web Reference: http://www.terryiwaniw.com
0 votes Thank Flag Link Sun Jan 23, 2011
Yes you should have a Realtor that has experience in Foreclosures, HUD homes and has worked with 203K loans. 203K loans can be quite time consuming. The lender you use is crucial, since you will need licensed contractor bids, invoices, pictures all sent to the lender in a timely fashion. If you are doing the work yourself, the bidding process is slightly different. If you need assistance, please let me know.

Janet Larsen, Broker/Associate
Remax Connection
Sewell, NJ 08080
856-415-1210, ext.321
cell: 856-261-6910
Web Reference: http://www.njrealtorjan.com
0 votes Thank Flag Link Thu Jan 13, 2011
What Toni said is perfectly true I recommend Lowes and Home Depot to many of my first time home buyers using 203 K loans. Makes it much easier to deal with and you have a fall back major company if you have a problem.

What you have to really be careful when distinguishing the HUD Foreclosure Short Sales is these are "as is" purchases. No Certificate of occupancy will be given. Which means without a C.O. FHA will not approve.

The 203 K mortgage can help you thru this "as is" process also. Does it take longer not really.

But also you need consider the Foreclosures. Many are not in bad condition but these move fast off the market. Usually special financing is avail for these if you will be the owner occupant and repairs can be negotiated into the offer. Also many times some closing costs are many times given with foreclosures. Having sold foreclosures and short sales these will be your best options if you are working with limited funds and want the biggest bang for your buck. January is the best time to buy if you can start your process now. http://sicklervilleshortsalerealtor.com/2011/01/why-january-…
Short sales are certainly a great way to get a great deal on a property that is in very good condition , maybe needing little to no work. They are usually currently being lived in. http://sicklervilleshortsalerealtor.com/2011/01/why-is-my-ag… The biggest hurdle with short sales is if the listing agent has no clue what they are doing. And if you representing aget is not asking the right questions. Knowing what you are up against is very important. For instance if the home has judgments or jr .liens against the property. This will hold up or kill a deal. There are too many others out there to sit and wait to find out the deal wont work. Know up front what you up against.

I recognize your name here and you have been looking for quite a while.

If you need more help just ask

Larry Sarlo
Weichert Realtors
609-868-1171
lsarlo@comcast.net
http://www.freenjhomeslistings.com
http://www.searchnjforeclosures.com
0 votes Thank Flag Link Thu Jan 13, 2011
Find a Realtor and Mortgage lender you can trust and has had many years of experiance. There are as many choices in homes as there are buyers to buy them.
With a pre appoved in hand, you will both know what you can afford & be able to bid on a home with no delay.
Let me try to simplify:
. Foreclosures are homes in mortgage defalt.
. H.U.D. stands for Housing and Urban Development.
. 203K is a type of F.H.A. loan that is available for homes in need of work that does not meet standard F.H.A. requirements.(You can borrow on the home plus acceptable F.H.A. repairs to fix).
How Long? All government mortgages may take a little longer than standard bank mortgages (.60-90 days is customary ).
Do you want a move in home with little or no repairs? These homes may not be for you! BUT, if you don't mind a challenge , you are handy and have a dream...these potential diamonds in the ruff, may give you the most return on your investment and get you into that neighborhood or home that you could not normally afford. Despite all the Bad news, Today is probably the best time to buy a home. Home and mortgages rates are at an all time low .
So I commend you on taking you first step and keep the questions coming!
0 votes Thank Flag Link Thu Jan 13, 2011
In this process you will be required to find a contractor (Lowes or Home Depot are fine) to give you an estimate on the work. Once you receive the estimates, you'll submit them to your mortgage company for approval. Once approved, that additional amount can be added to your loan. However, this money will not go to you, it will go directly to the contractor in increments as they complete the work. This will add some additional time to the loan processing, but if you don't have the money up front, it is a great deal.

Also, this will only cover repairs and or updates. For example, it does not cover finishing a basement if the basement is currently unfinished.
0 votes Thank Flag Link Thu Jan 13, 2011
Cpunkin,

Specifically a 203K is a type of FHA loan that is considered a rehab (defined as needing $5000 or more in work). The work to be done is financed into this type of FHA loan and a 203K consultant is required (as part of the process).

All foreclosures are not 203K's, and HUD simply stands for Dept. of Housing and Urban Development, which in this case is mostly synonymous with the FHA.

There are many good 203K loan agents that frequent this board but if you cannot locate one in your area, let me know and I can refer you to someone who will be happy to help.

Thank you,

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Thu Jan 13, 2011
203k is a type of loan where you borrow money to do repairs. It typically takes longer to process this type of loan. Foreclosure means the bank owns the home. To answer your question of which is better...that really depends on the price of the home and market value once you put money into it. Sounds like you would benefit from a buyer agent relationship and I would recommend you interview area Realtors to assist you in this process.
0 votes Thank Flag Link Thu Jan 13, 2011
Yes, you definitely need to consult with a local Real Estate professional who has experience with foreclosures.
The process does not take long at all....30-45 days and you're in.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Thu Jan 13, 2011
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