Wednesday, September 21, 2005

So you want to buy a HUD home?

In today’s market, there are many types of foreclosure sales, but recently, the most advertised on T.V., radio, and newspaper classifieds are HUD homes.

What exactly is a HUD home?

A HUD home is a mortgage insured home through the U.S. Department of Housing and Urban Development in which a mortgagor has defaulted with its lender. When this happens, HUD then pays off the lender and in return becomes the new owner of the home.

Therefore, the term of a HUD owned home is in place.

There can be great benefits to owning a HUD home, but at the same time, you must be an informed buyer. These homes are often sold at or below market value. However, Buyer Beware: these homes are sold AS-IS. As-Is means, NO repairs will be made to the home. What you see is what you get. Therefore, I highly recommend you know what you are buying. Get an inspection from a trusted and qualified company. You will also be responsible for your inspection costs which will generally run approximately $325. No warranties will be offered on the home.

Next, be prepared for a whole new process of home buying. Everything you are used to is now out the door and those traditions no longer apply here. I highly recommend you work with an agent that is experienced with foreclosures and is a registered HUD agent. This will make your transaction a lot smoother and their knowledge of the process will be highly valuable when it comes to understanding the bidding process.

This brings us to your offer. HUD homes are sold as a bidding process. This means that your offer, along with several other offers are submitted on-line and the highest most reasonable bid is generally accepted. Most real estate agents often will use the term “make the cleanest offer possible”…which means to submit an offer with a strong price, and don’t ask for anything else. Sometimes the bank will pay buyer financing or closing costs, but remember this will make your offer weaker compared to other bidders. Your form of financing will also play a key role. You are considered a stronger buyer to the bank if you are a cash or conventional buyer. As you become an experienced investor, you will learn which homes are hot buys, when you need to have solid offers, verses times you can offer a lower price. It all comes with time.

If your offer is accepted, your earnest money will be deposited and a closing date will be targeted. In general, closings are 30-60 days out, but it is not uncommon with government homes to have later closings since they have to clear title. Often problems come up on title work that they have to clean up which can delay your closing.

If you are interested in purchasing a HUD home or have questions feel free to contact me as I am a registered HUD agent.

Thursday, September 01, 2005

September’s Hot Picks

School’s back in session, leaves begin to fall, but before snow starts coming…enjoy some of the warm weather’s last minute chances:

September 1-5, 51st Mac Tools U.S. Nationals – This has been labeled the Super Bowl of drag racing folks…this means it is a MUST SEE. If the need to see speed is up your alley, this is the show for you. Location: Indianapolis Raceway Park. Tickets: prices and times vary per day. Info: 317-291-4090

September 3, Meijer Skyconcert – This is the best way to finish summer! Running its 23rd year, this music and firework celebration is a great way to spend time with family and friends (especially those coming in from out of town). Food and beverages will be available. Location: White River State Park, Celebration Plaza Time: 4-9pm Admission: Free!

September 9-11, The Solheim Cup – Forget the Ryder Cup….we’ve got the Solheim Cup! This is the women’s version and its right here in Indiana! Sorry, but tickets are long gone unless you know somebody who knows somebody who can get tickets from somebody….Our U.S. ladies have never lost on home turf so hopefully this will be on T.V or you can score a ticket somehow because this will promise to be an exciting event. Location: Crooked Stick Golf Club Info: 317-846-4038

September 11, Indianapolis Symphony Orchestra –This black tie opening event starts off the always popular ISO season. The party begins at the Hilbert Circle Theater and the concert kicks off 19th and 20th century classics and Broadway standards. Location: Hilbert Circle Theatre Reception 5pm; Concert 6pm. Tickets: $45 to $65 Info: 317-639-4300

September 12, Green Day– Although I am not a Green Day fan, one cannot over look the many Grammy’s, Billboard Awards, and Moon Men they have recently racked up…must mean they are pretty popular. Location: Conseco Fieldhouse. Tickets: $39.50 to $45.00. Show Starts: 7pm Info: 317-239-5151

September 16-18, Indy Irish Festival – Celebrate the Irish heritage the real way, complete with dance, festivities, games, contests, music, and much more. They even have a Celtic canine show! Location: Military Park Time: times vary. Admission: $12 Adults, $10 Students, Free for children under 13. Info: 713-7117

September 17, Fiesta Indianapolis – Representing 23 different cultures, the Fiesta festival has reached its 25th year! Besides traditional Mexican food and mariachi bands, several other Hispanic cultures will be represented including Peru, Brazil, Colombia, Argentina, and Panama. This is a wonderful way to learn about cultures and their countries! Location: American Legion Mall. Time: 12pm-Midnight. Admission: Free. Info: 634-5022

September 17, French Market – If you have always dreamed of going to France, but your budget won’t allow it…try the French market instead. Enjoy music, games, and of course several different styles of French cuisine (and those yummy pastries)! Bring the family and make it a fun filled day. Location: St. Joan of Arc Parish Time: 12pm-11pm Admission: Free Info: 283-5508

September 18, Indianapolis Colts – This is when my official shopping season begins, for the rest of you, it’s the beginning of FOOTBALL SEASON. I do not plan to post all their games (sorry), but I thought I would at least mention this is their first game. Our Colts will be playing against Jacksonville and as always…GO COLTS!!! Game Starts: Noon Location: RCA Dome Tickets: $19 to $49 Info: 317-297-7000

September 28-October 2, Ringling Bros. & Barnum & Bailey Circus– The circus is coming to town! Complete with animals, clowns, and magical thrills. Bring the family and reminisce childhood all over again. Location: Conseco Fieldhouse. Times: Wed-Sat 7:30pm Sat-Sun 11:30am, 3:30pm. Info: 239-5151