Foreclosure Bidding Tips: HUD Foreclosures

There are three categories of properties that are sold by HUD as foreclosures.

They are:

1) Insurable Listings (IN):

An Insurable Listing (IN) generally does not need any repairs.

2) Insurable Escrow Listings (IE):

An Insurable Escrow Listing (IE) needs minor work (under $5,500). These funds will be financed in set aside in an escrow account for you to complete the repairs after your purchase.

3) Uninsurable Listings (UI):

An Uninsurable Listing (UI) will need repairs greater than $5,500. These homes are only eligible for FHA 203K (Rehab) financing. The cost of the repairs will be included in your mortgage.

When bidding on a HUD home always remember this.  If your bid is more than the asking price you will be asked to pay the difference in cash.

Example:

If HUD is asking for $100,000 and you bid $105,000, you will be required to invest at least the minimum 3.5% as a down payment PLUS the additional $5,000.

The above is not a requirement when you choose an FHA 203K loan as your financing option. Every HUD listing is eligible for this type of financing no matter what category they are in. If the home does not need repairs the money can be used for upgrades, energy improvement, and appliances.

In short, if you plan to bid more than HUD’s asking price an FHA 203K loan may be your best option!

I’ve helped thousands achieve their dream of home ownership in my 20 year career. Call or email me anytime!

Mark Robinson

732-207-8434

mark@njfhapro.com


 

99 Responses to “Foreclosure Bidding Tips: HUD Foreclosures”

  1. Nick said:

    I found that very informative. Thanks for the comments. I will be back to check for more info.

  2. Vana Mann said:

    Thank you so much for this direction.

  3. Josh Bedonie said:

    Hats off for this write up.

  4. Jeff Mays said:

    Thank you. Another great post. Thank you for the information. Its good to see such quality posts. I’m subscribing to your blog.

  5. Vana Hilroy said:

    Good blog! I actually love how it’s easy on my eyes and also the information are well written. I am wondering how I can be notified whenever a new post has been made. I have subscribed to your rss feed which really should do the trick! Have a nice day!

  6. Mat Dizero said:

    Good stuff. Looking forward to reading more from you.

  7. James said:

    Great post thanks, like your blog layout too.

  8. Toni Jamison said:

    We absolutely adore reading your site articles, all of the writing is actually smashing.This web site as usual was educational, I have had to bookmark your site as well as sign up for your feed in ifeed. Your own theme looks beautiful.

  9. Yaney Gold said:

    This is my personal very first time I’ve visited here. I found lots of interesting info within your blog. In the volume of remarks on you, I guess I’m not alone! keep up the amazing work.

  10. Emmett Falzon said:

    I was searching for some info on this and came across your blog. I am very glad I saw this info that you just have here. It shows how well you comprehend this. Bookmarked this page for further reading, will come back for more.

  11. Beatrice said:

    I think you have a great site here… today was my first time coming here.. i just happened to find it doing a Google search. anyway, great post.. I’ll be bookmarking this page for sure.

  12. Charley Camburn said:

    I hope to be able to give something back & guide others like this message board has helped me

  13. Ramon Torres said:

    This is absolutely interesting and useful information. Good job

  14. Leslie Forrest said:

    I really like your point of view. Very good post. I am glad that I discovered this information.

  15. Ethelyn Accomando said:

    Regarding your blog,I could honestly say that you writing is great and your website solid.

  16. Tarra Daughterty said:

    You’re one in a million. Thanks for imparting this. Your ideas made me reevaluate.

  17. Jocuri said:

    Hello, this is a really fascinating web blog and I’ve loved reading several of the articles and posts contained upon the site, sustain the great work and hope to read a lot more exciting articles in the time to come.

  18. Timmy Thomasen said:

    I Love your website. I’m gonna post a link on my Facebook Page!

  19. Victor Dryer said:

    Your website is definitely filled with amazing knowledge!

  20. Sal Buxton said:

    Great post.

  21. Angelo Netzley said:

    Great job with this piece. Hope you’d post more often though. Plenty of people can profit from it.

  22. Harris Matczak said:

    Thanks for the insightful information. I really find the article / commentary quite helpful.

  23. Rayford Mcenery said:

    Well written. One the the better commentary’s on the subject that I have seen.

  24. William Jahncke said:

    I really enjoyed that post. Please let me know if you submit any more.

  25. Bonnie said:

    Hello! Just wanted to say good blog. Keep up the good work!

  26. Denise Horn said:

    I’ve really found out a lot reading this page.

  27. Melissa Harris said:

    You completed several good points there. I did a search on the theme and found nearly all persons will have the same opinion with your blog.

  28. Jonathon Vaninetti said:

    Thank you very Much great info. I Love your website.

  29. Michell Rain said:

    Great article

  30. Christian Angelo said:

    I love this site, I’m glad I stumbled across this,very clean presentation and a great resource!

  31. Sammy Whysong said:

    Hello, I first would like to congratulate you on making such a great site. I definitely found your information very interesting and useful. Please keep up the good work. I will be revisiting your site thanks.

  32. Samuel Wiches said:

    I am really loving the theme/design of your weblog.

  33. James Hensley said:

    Oh my goodness! An incredible article dude. Thanks

  34. Shirley Jure said:

    Good article. Thanks for it, and keep doing great on your blog!

  35. Janae Caballero said:

    I can’t say that I agree with everything that was said, but very good info overall

  36. Manny Sulzman said:

    This actually answered my questions. Thanks!

  37. Matthew H. Sriner said:

    After studying a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon.

  38. Milford Lutton said:

    I find it interesting that many of the people who wrote in with thoughts. You have a great site.

  39. Dave said:

    I actually love this web site, keep on it

  40. Isabelle Valdez said:

    I always thought that a blog topic about this one would be particularly interesting. This is good.

  41. Dave said:

    That is the fitting weblog for anyone who desires to search out out about this topic. You understand so much its. Great stuff, just great!

  42. Paul Feinstein said:

    I can say that this kind of topic is really worth the read.

  43. Halogen Oven said:

    Let me just tell you that i really like your blog because it is so original.

  44. Barry Skolnick said:

    I Love your website. I’m gonna post a link on my Twitter Page!

  45. Travis Speedwell said:

    I read a lot of blogs but this is among the most interesting ones.

  46. Harold Davis said:

    This is very interesting. Learning specific. Thank you.

  47. Maxine Best said:

    It’s actually a useful piece of info. I’m glad that you shared this useful information with us. Please keep us up to date. Thanks for sharing….

  48. Anonymous said:

    Awesome website……

  49. Frank said:

    Wow, wonderful blog layout! How long have you been blogging for?