Home Buying in 46017>Question Details

Jill Kristine, Home Buyer in Anderson, IN

HUD home closings percentages?

Asked by Jill Kristine, Anderson, IN Tue Sep 18, 2012

My husband and I put a bid on a HUD home, and were the "runners up". We were told if the winner bid fell through for any reason, we would be notified. Should we just move on and forget about this home? Or is there a decent chance the winning offer will fall through? Just wondering about percentages, and if anyone has known a lot of HUD purchases to fall through. In our area, it's VERY hard to get a loan, especially for an "as-is" property. We're planning on paying cash, which is why we initially were looking for a Foreclosure situation.

Thanks!

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Sometimes deals do fall through due to financing or inspections. Most of the time the HUD sales do close, because they make sure to get proof of funds & financing prior to accepting the offers. I would continue expolring options.

There are FHA 203 K streamline loans that will allow funds for improvements. The Fannie Mae Homesteps program also allows for rehab funds on certain Fannie Mae REO homes.

Being a cash buyer is a great position to be in. There are a lot of great deals out there. When a home is listed at a below market price there is a lot of competition among able buyers. Many are getting multiple offers. Many banks try to leverage this situation, and ask for highest and best from all potential buyers. This puts the seller in a position to maximize the selling price.

The advise is to act quickly on something that is a great deal, and make sure you make it subject to inspections.
0 votes Thank Flag Link Tue Sep 18, 2012
Yes, they do fall through on a pretty regular basis if the buyer is applying for a mortgage. Cash deals usually do not fall through to the back up. I would suggest to continue to look ....even if that deal fails, HUD usually puts the home back on the market for their 1-14 day simultaneous bid period for Owner Occupants then the 15 day investors can bid.

Please call me if you would like to discuss further.

John Massey
317-482-9166
0 votes Thank Flag Link Tue Sep 18, 2012
So even though we were told that we would be contacted as the "second best bidder", they might still advertise and put it back on the market?
Flag Tue Sep 18, 2012
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