Thread: Looking for solutions to problems with HUD house

fifty people looked and no responses?

Questions:
1. Will HUD help fixing this house if there's all these problems? -Probably not. Why would they? HUD has inventory for the public to buy, that's all.

2. Should I offer less money like $70,000? Will HUD except an offer that much lower? -They may, depending on how many offers they have received thus far. I'm sure there are others who have offered that little.

3. What would you do? -If this were my first home and I could steal it for $70k, depending on the neighborhood AND if I were going to stay put for a minimum of ten years, then it wouldn't matter to me how many repairs it needed. These repairs you state that are needed should be expected. Plus, many banks won't finance a house that needs all those repairs. Most of those homes are cash only.

4. Am I being paranoid and too critical because this is my first house? -You're being to critical of the repairs mainly and you're allowing yourself to become too emotionally attached to a dwelling. There are others out there I'm sure. This isn't a one-time decision. In ten years, you'll probably live in another part of the country, probably do to job loss like 90% of the working crowd out there. But, good luck.

Thank you for your response. One thing is I'm not really attached to this house the real estate agent and broker have been calling me every day saying that we can get this deal done and we should put another offer in. I'm not finding any other houses that look good either. The problem is we need acreage. You say you would buy it even with the problems if you were planning to hold on to it but the banks won't write the loan on it. So if I put another offer in and get the inspection its going to cost about 1000 to get everything turned on for the bank to say they won't finance it with the problems. Then we are going to have to pay out a bunch of money to fix a house that's not ours to try to get the mortgage. I'm just afraid its going to cost a fortune and then if it doesn't work out we will not have the money to put in another offer on another house.

I'm definitely feeling pressured by the real estate agent though and I think its just because he knows there's nothing else out there that we like right now so he just wants to make the sale and get his check.

The property sounds to be "cash only" because the bank as you said won't finance it in the shape it's in. If you don't have the cash (and it sounds like you don't), then move on. There will be other homes in the near future. These "deals" are only deals for investors, not first timers looking to move in and stay put. This is what the government and other offices don't understand. Yes, it's a Big Catch 22 and helps nobody.

Well, the agent needs to eat so I don't blame him for moving things along. And after E&O, admin costs, gasoline, car insurance, 20% for Self Employment tax, 15% for Social Security, 50% to his broker and aggravation fees, there's not much left and time is money.

I agree totally that he needs to get a paycheck however he should looking out for me. If I get into this deal and it takes a ton of money to fix it up and I get everything done and move into the house and don't have enough capitol to keep my business running then I just lose the house. However if I get half way into the deal and then back out, everyone loses except hud because they may get a little work out of it.

Disclaimer: I did not read your whole post because it was not formatted very easily on the eyes (i.e. PARAGRAPHS!!!). But, it appears you have a buyer's agent working for you.


If that's the case, and if you trust that they are knowledgeable about the area and have experience in these types of homes, then all you need to do is consult with them.

No family member, co-worker, or friend of yours is going to give you as much accurate information as your agent. Not even us professionals on this forum. None of us know what the house looks like, or where it is. That's why they are your agent. They are there to help you.

The average home owner will buy/sell about 6 properties in their lifetime. A good agent does that in 2 to 3 months. Who do you think has more experience and knowledge???!!?

If you were going to have a medical procedure done, would you go to your neighbor and ask them what they think you should do?! NO! You'd go to the doctor and get their professional opinion.


I'm not even going to get into specifics on your questions, because frankly I would be purely guessing (as would anyone else not directly involved in your search).

I hope you have posed these questions to your agent--and if not then you need to do so right away.

No advice you get online is going to compare to talking with your agent.


And if you don't trust them enough to ask them these questions, well....then you need to get a new agent!!!

Dont Ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

First time, I do appreciate my agents knowledge and have asked these questions however I also am aware that his input may be a little biased as he's getting paid based on the sale price and the faster the deal gets done the faster the check goes to him.

I also understand that the $2500 that gets split between him and the broker may not amount to much compared to some of the people that are buying larger houses. So I could definitely understand why he would want to push this deal along and keep the price as high as possible.

I was simply trying to get an unbiased opinion about
1. hud houses taking less than asking price?
2. Will hud repair problems that result in the buyers not being able to get a loan?
3. Are these irrational worries?

Of course my agent is going to tell me hud won't take less for the property, he was trying to get me to offer more than asking before we sent the original bid in. What does he care about the problems, we can deal with those after we move in.

At the end of the day, I'm the one living there, paying the mortgage, fixing the problems, and once I sell I'm the one that is going to realize the loss or profit on the house.

When I need to learn how to bid on a landscape job or a large complex I go to landscape forums and ask other professionals because of their experience. They might not be in the same state as me but they can surely give me some info on their production times. Therefore I thought where better to ask my questions than to a forum with non-biased experts.
I certainly didn't come on here for a lecture about trusting my agent, especially from someone that didn't feel like reading the post in the first place. Oh and I used paragraphs for you this time so you could read this one. And since this post is entirely directed toward you I'm sure you haven't gotten bored with it yet.
I appreciate any constructive criticism from someone that could understand why I might not believe everything my agent says. in Michigan, around here anyway, I seriously doubt any of the agents are selling six houses a month, the economy is still terrible. I feel bad for him but that doesn't mean I shouldn't get the best deal possible so he can get a higher commision. If you can't understand why someone may feel that way maybe you should put yourself in your customers shoes. You might become a better agent because of it.