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Home Buying in 55306 : Real Estate Advice

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  • Home Buying3
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Mon Jul 2, 2012
Christine Rocheford answered:
This question has been common in the last couple of months. If you have a cash to purchase a HUD home Great! My next question is are you able to provide a Proof of Funds letter from a bank? You will need to have either a pre-approval (typically when financing) or a proof of funds letter to get your offer into an "accepted" state should they select your offer.

I have had a few that don't have bank accounts so the proof of funds becomes more difficult. Then at closing time you have to wire the funds so you need a bank account at some bank as the closing company for HUD no longer takes cash. I know crazy, the closing company for the government doesn't take cash any how any way.

Hope this helps you in your purchase, if you don't have an agent already be sure to ask home many accepted offers they have had that where HUD Homes.

Chris Rocheford
Keller Williams Realty Integrity NW
Licensed MN Realtor
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Wed Jun 24, 2009
Dan Swanson answered:
You have to negotiate differently with a lender than a private owner. There is NO emotion involved on the lender side in this transaction! The lender's representative doesn't need equity to use as a downpayment on their next home (as an owner/occupant might) and they normally get paid a salary whether they accept your offer or not! So there is no financial incentive for them to "cut you a deal". The lender cares about three things - the current value of the property, foreclosure inventory, and loss levels which are acceptable for write-offs. That value can be based on a broker's opinion, recent sales data, or a recent appraisal. The point is, it's all about the numbers.

You've already shot for the moon with your first offer - and were denied. Your offer was so low that the lender didn't counter. Get a current, level-headed market analysis for the property and base your offer on that figure minus whatever you think the lender may term "an acceptable loss" - say 5-10% (maximum).

Remember that negotiating for a bank-owned property is much like attending a 1-person auction: You must guard against overbidding. If the property doesn't make sense at your calculated offering price or a counteroffer price, you have to be prepared to walk away and seek a better deal elsewhere.
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Fri Apr 25, 2008
Deborah Madey answered:
So, is the contract signed by both buyer and seller? That determines where you are at in the process.

I don't understand the "out of town" excuse. I have communicated with and transferred documents all over the states and the world. We live in an age where that is accomplished with ease.

Perhaps your agent can contact the listing agent's broker since there seems to be a lack of experience on her part. Perhaps some coahcing would move things along. That provides no guarantee, though. If the hold up is really the bank, that must just accept...or withdraw your offer and walk away.
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