Aprilgreen25, Home Buyer in Anderson, IN

What determines if a Home is sold as a HUD home or a Fannie Mae Homepath home?

Asked by Aprilgreen25, Anderson, IN Sun Feb 3, 2013

My husband and I have started purchasing rental properties in the Central Indiana area. I am wondering if someone can inform me how it is determined if a home will be sold as a HUD home or a Fannie Mae Homepath home? Also, I have heard about investors being able to find foreclosed homes on their own and purchase them from the bank before they come onto the market. Is this true?

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The last loan type determines who ends up with the ownership of the property ... If it was a FHA loan then usually HUD ends up with the foreclosure property ... if the loan was sold to Fannie Mae after it was closed the they would usually end up with the foreclosure property.

Can you by-pass the normal real estate sales process ... via direct purchases ... it is possible but often only in bulk purchases. If you have inside information maybe a better chance. You will need deep pockets to pursue this avenue ... in 20 years of real estate very few are successful in this avenue. Some Lenders may be precluded via government regulations from doing this.

I understand the thought process your going through cutting out the normal cost ... these bulk purchase are usually only of properties they can't sell normally they bundle to get ride of the junkers.

Your best avenue is to get a knowledgeable Realtor and pick properties carefully make sure you know what actual rents are being collected and what it takes to get those numbers.

After 20 years of working with investors ... Last word don't get greedy and try to get rich quick, leads to bad business decision.
1 vote Thank Flag Link Sun Feb 3, 2013
Thank you for your informative reply. We are not interested in buying properties in bulk, so that answers that question.

We feel like we are doing things the right way. We have a set criteria that we follow with each purchase. First and foremost, location. We only purchase houses where we would feel comfortable for our own family to reside. We do not buy anything that isn't low/no maintenance exterior. We lean strongly towards homes with basements and yards. We also do most of the interior work ourselves to save money. On the financial side of things, we are up to 5 rentals right now, and took an 80% loan value against our own home which we owned free and clear to purchase them. We are now working with a lender to borrow against 2 of our highest valued rentals to purchase 5-7 more rentals. We have a friend who is a property manager handling our rental leases, and so far, we have really awesome tenants. Open to any other advice you might be able to offer.
Flag Wed Feb 6, 2013
A HUD home is a home that had an FHA loan on it that defaulted. A Fannie Mae hinge most likely had a conventional Liam, with mortgage insurance on it that defaulted. On HUD homes it is owner occupant priority for 30 days. Fannie Mae is usually owner occupant foot the first 15 days.
1 vote Thank Flag Link Sun Feb 3, 2013
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