Current Real Estate Boom -2012

A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. You can buy a HUD property only through an registered HUD Broker in your area. They have all the pertinent forms for submitting your bid to HUD for consideration and can guide you through the procedure.
You will want to have the broker do a market survey of the immediate area to help determine your bid. Remember that the price is only an asking price. Although HUD provides Property Condition Reports and other disclosure documents you always want to get an inspection unless you are an experienced rehabber. HUD does provide some estimates for repairs that may be required but don't take unnecessary chances.

I have spent more than my share for how-to books and seminars and have read everything I can get my hands on probably like many of you have looking for the elusive "BIG SECRET" in real estate. Whether you are a new or seasoned investor or a first-time home buyer there is always the latest guru who's going to only let the next 15 people learn their "amazing top secret strategy" for the super low price of $997, but wait, you'll get 15 other secrets along with it!

Okay, be honest now. Do you have books, CD's and valuable lesson plans scattered about your office right now? Don't feel embarrassed. We were raised with a certain expectation, an outlook on real estate and investing that simply does not hold up any longer so today I am letting the cat out of the bag. Are you ready?

BUY LOW.

Expecting more? Well this is all I have to offer. Think about it for a minute. Most of us have bought automobiles, trucks, boats, maybe a rifle and in every case didn't you try to get it for the lowest possible price? You'd haggle for 2 hours over a 3 year old ATV but when it comes to the largest purchase of your life you paid what you were told to offer because it has been a "sellers" market in real estate for decades and now, finally it has become a "buyers" market. And I don't know about you but predicting the future is not one of my strong points however, I can have control over the present to a large degree. Banks are practically dumping properties and will be even more so in 2012 and NOW IS THE TIME TO BUY. Don't be afraid to offer way below the asking price on bank owned real estate.

Further down I'll discuss some really special HUD programs.

This is verbatim from the HUD Home Store

HUD's Dollar Homes initiative helps local governments to foster housing opportunities for low to moderate income families and address specific community needs by offering them the opportunity to purchase qualified HUD-owned homes for $1 each.
Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (FHA) as a result of foreclosure.

Some homes needing repairs will qualify for section 203k Rehabilitation Loans to make financing repairs affordable and part of the original loan.

These opportunities go quickly so check with Registered HUD Broker in your area. Special income requirements must be met to qualify

Okay, you have it straight from HUD about the lowest price is that they will accept. There are factors and fees that are assumed that I encourage you to question, especially the presumption of 6% Broker commissions. Also, if a good bid does not come in a reasonable time frame they will lower even further their "lowest" acceptable offer. Work with your agent, look at comps and submit what YOU think is the best offer. After all, it is a buyer's market!

This is an amazing program that is limited in that eligible properties change frequently and don't last long. The reason? HUD will reduce their asking price (already a bargain) by half for law enforcement officers, firefighters, emergency medical technicians and teachers to purchase homes in certain renewal ares commonly called revitalization zones. Most every city has one or more qualifying areas and you can learn more about where to find them by copying and pasting this link to your browser:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/abtrevt