Will HUD accept assigns contracts

Probably not. Don't quote me on that. But either way, see if you can get over the 10% down thing. If not, write your contract to say deposit will be paid with in 3,4,5 days of an accepted offer. If you say this make your offer be at a price you want and be sure once your offer is accepted you have a buyer that will want the house and can put the deposit money up. You can do a double close on this deal if your offer is accepted. Your investor is paying for the deal anyway. Make sure you have a title company or a real estate attorney to do a double closing. If your attorney or title company is good, they can make this transaction happen real smooth. Hope this helps.

Thanks for the reply ill look into that.

I am an agent in Arizona. I have not done a HUD contract in a few years. My experiance is much like your agent explained. HUD has their own bid forms. They do not allow changes in the terms. They were very strict with their policies. They used their own closing companies. I believe they also required buyers to hold the properties for a length of time. I believe it would be difficult to wholesale one of these properties. HUD has a web site that gives a lot of information to buyers. I suggest you check that out. Maybe someone with more experiance will respond.

Wish you success, Al

Hey Giovanni,

HUD has even more strict rules on their properties than regular REO's. You will normally have to put a certain amount of money down and it sounds like in your state the addendum they will make you use will probably take out your inspection rights. You can definitely double close on HUD properties, but they are a lot riskier than dealing with regular homeowners.

A small tip though, if you are dealing with REO's and want to assign, a lot of times you can still swing it, I would say 9 out 10 times depending on the bank. What you would do is just have a title company or attorney lined up who can complete an assignment of contract, and then a couple days before closing have your attorney/title company contact the bank and tell them what needs to be done in order to close the deal (assignment). If they present it correctly to the bank, meaning the bank is the one holding up the deal because of a no assignment clause, they will allow the assignment to go through (the majority of the time) just to get the deal closed. Most banks will not walk away from a transaction that is about to close in 2 days for something as small as an assignment clause. I don't have much expierence trying this tactic with HUD homes, so I would exercise caution if you want to try it out.

Take Care,

Larry

In the last dozen REOs we bought, whether its HUD, Fannie Mae, or any other bank, they still dictate the terms of the closing. First they will not allow an assignment, their contract usually has a penalty clause with time is of the essence, the penalty can be $ 100, $ 200, or more per day if you the buyer doesn't close when expected, but if they aren't ready too bad. The way to double close is to buy with cash, if you don't have it get transactional funding, then do a 2nd closing to your buyer. Remember the TF company wants your buyer already in place.
It seems it is more difficult to deal with the banks now, than 2 years ago,
they are only accepting higher offers on the properties, especially Fannie Mae.

NO

But you can do a double close.

But I have another question..... If you say "My realtor is not exactly sure how they work.", why are you using them?

Would you use a surgeon who is not quite sure where to cut?

Not being mean, but I am trying to get a handle on why folks would place a member on their team that is unsure of their own area of expertise.

In 8 years as a RE agent, I have done two HUD deals. The last one was six years ago. The HUD bidding process is compleatly different from the conventional offer to buy process. If I was going to make a bid on a HUD home, I would need to research the the process, as they are constantly making changes to the proceedure. This agent was acting in a professional way by informing the buyer of what he knew and attempting to get answers to what he was unsure of. A RE agent should know how to assist buyers and sellers to complete a property transaction. Wholesaling is a function of investors, and RE agents are seldom involved. So who should be more knowledgable about wholesaling, a professional agent or a professional investor?

Wow alot of incredible input thanks for all this information. I will continue to look into this and discuss it over with my RE Agent.

But I take exception to having a member of the team whereby the investor is only doing assignments and the agent doesn't know how to perform the duties asked of him. REOs, Short Sales, Gov't owned homes are commonplace today; they were not when you were a Realtor 8 years ago. Different market. Wholesaling in today's environment does include the real estate agent due to the assignment and/or double close. You need to have an agent that knows what they are doing. They should not be learning on the job at the investor's expense. Doesn't that beg the question of what else they might not know? If they screw up, will they pay the investor the money on the opportunity they could have made?

So as to your last point, I think you have to insert another variable "So who should be more knowledgable about wholesaling; a professional agent, A NEW INVESTOR or a professional investor? I would think the professional agent should know better than the NEW INVESTOR or why are they using them?

Check Al's profile, he IS a realestate agent in AZ and a darn good one at that, in this market rules change daily. Researching is part of this market, not only by the New Investor, but the seasoned pro and RE agents alike. I realize you meant no disrespect but I am guessing you have failed to read the numerous contributions Al gives. I am not speaking for AL but I have spoken to AL and he has helped me many many times when I was new to this game and continues to help not only myself but many DG family members. He stands up for his fellow RE agents, just like every member of the DG family should stand up for eachother. Not one person on this site started out knowing everything about realestate, or every stategy, we learned through trail and error, we took what we learned and passed it on to those who find themselves in the same or similar situations, only as an advisement, what worked for us may not work for them without a little tweeking in one way or another. Advice is just that advice, I learn something new here everyday. While I am sure you are an expert in what you do and that your comments have helped many on this site, please donot disregard the expertise of others who contribute also.
Sincerely,
Donna Quenzer

HUD has their own contracts, and I can tell you and he were to get them.

Earnest money is not more at risk. One check is just shredded, and another is issued.

There's always "Risks of not closing on time," on any deal...HUD or otherwise. If your realtor was being forthright, he would be telling you this. Closings can take place in the same amount of time as any other closing as little as 30-45 days, although title, financing and other issues can delay any kind of closing. One of the things that slows down HUD closings is there is only one or two HUD closing agents that fly or drive all over the state to do them each week. Here, the fella's name is John, and he'll close 5 or so in town in one afternoon, and he's gone the next morning, and back in El Paso by Sunday afternoon. So, what I'm saying is, you have to wait for the HUD closing agent to come to you from out of town, as the closings don't happen with local title companies.

All HUD homes are sold as is. HUD is required to do a few things by law, like with any seller, like remove lead based paint, for example, but beyond that they're as is.

I doubt very, very, very seriously one can assign a HUD contract, otherwise it would be in the contract.

"Rick in Amarillo," Realtor

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You crack me up! What great answers those were! The other poster needs to see the HUD broker or one of their agents in their area, not any ol' realtor. There's only one person that is that knowledegable in each area.

Rick Allison, Realtor, Founder and President
Great Site, Inc.
GreatSite.com
AmarilloHome.NET

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I have read Al's profile and I know he is a Realtor and I do believe he is one of the good guys; but my comments weren't directed to him or any other Realtor that is a true professional in their field. (look at the title in post #9 as proof)

My comments were directed simply as a question of why the POSTER would follow someone into the investment arena in an area that they were not sure of. (Poster's words, first sentence;not mine)It can be a recipe for disaster.

There are other very smart Realtors on this website as well and I have acknowleged that fact. Please understand, I am not interested in character assassination, only precautionary comments that hopefully make people think.

And for the record, I make mistakes too. But my mistakes cost ME money, not others.

To a certain point trustpoint you do have a point. But so far I have tried 5 different RE agents and its been months of trying to get work done. The one i have now I really feel comfortable with although I do wish he was more aggresive sometimes. I feel were close to closing a deal soon. I think its about beleaving in you team.

You do have to use a HUD approved Agent. You can contact HUD for a list of Agents.

Also the HUD bids are an auction. Owner occupied get to bid first then if there is not an acepted bid investors can bid.

The last home we bought was a HUD home and that is the way it whent down.

Good Luck.

Steve.

I believe that is correct with owner occupants get first bid on the house then investors second.

I have been reading a lot of the comments and just have a few specific questions?

If you cannot assign through HUD, I am assuming you can pay cash like with a hard money lender?

Also, I have been to only two cities. One in the northeast and one in the south and combined they had 15,000 foreclousres!

How willing is HUD to take multiple low offers on many of the properties they list? I am just wondering if they flag you or if there is a maximum number you could offer?

Thanks for your help!

Peace,

MissJulie