Foreclosure in 76053>Question Details

12300564, Home Buyer in 76053

Good Neighbor Next Door program.

Asked by 12300564, 76053 Tue Feb 7, 2012

I understand we bid on property through our Realtor. If we win bid are we contractually obligated? When do we have to put the 1% earnest money down? Before inspection? Is this refundable if it fails inspection?
My concern is getting in over heads. I would like some advice outside our realtor.We have also found a property that is up for the next 5 days that we really like and in our School Disctrict we teach. Please help ASAP. THANKS!! Daniel DFW, TX

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As far as your current bid, if they have accepted the bid, then yes you are legally and contractually obligated. If you just SUBMITTED your bid and it has not yet been acepted, then you can pull out of it at any time by giving the proper notice (as your agent).

I have had some experience with GNND. It is a great program if you can take advantage of it, but it is difficult to find something. I wrote an article on the GNND program on my blog here: http://brianrayl.com/blog/teachers-fire-fighters-paramedics-…

The selection is a "lottery" style selection where all people who put a bid in and qualify for GNND get put into a drawing and the one they pick out of a hat wins the bid. The best thing about the GNND program is that you only have to put $100 down if you are using FHA financing. Oh, and the fact that you only pay 50% of the asking price (you make a full priced offer on your bid, but then sign a promisary note saying that you will live there as your primary home for 3 years and they will waive the other half of the price).

If you can't find anything through GNND, then you may still qualify for special financing through certain banks. do a search on my website for what ever profession you are. I have a lot of special deals on my site through lenders that I use.

Best of luck to you!
0 votes Thank Flag Link Wed Feb 8, 2012
Bruce's advice is good.

Are you pre-approved for the loan?

This is a good program, but you need a realtor that knows their stuff to make this smooth.
I have seen Bruce's answers all over Trulia and I have never disagreed with his advice.
I suggest you contact him if you aren't working with a realtor already.

Let me know if you have any loan questions. But ask Bruce the questions regarding offers, contracts, ect!!!


Tom Burris
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(214) 763-4629 cell/text/nights/weekends(Really!!)
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0 votes Thank Flag Link Tue Feb 7, 2012
Yes..you are obligated if you win the bid.
You do have to put in earnest money as in normal HUD bid.
Inspections do not pass or fail. It's just a reflection of the condition.
You don't want to do an inspection on a home you don't own or control in my opinion.

There are very very few homes available in this program. Make sure you found a GNND house, not just a HUD home. Not all HUD homes qualify for the GNND program.

For example I only see one house that is current available on the GNND program in Tarrant County. You can see it here. Make sure your realtor is familiar with HUD bidding, is able to bid on HUD homes, and knows how to explain the GNND program to you.

The GNND homes are typically only available in targeted areas, and there are specific rules to bid on them.
0 votes Thank Flag Link Tue Feb 7, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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