by Evette Cecena, the Queen of HUD on November 28, 2010
When working with an agent on a short sale be aware of when the inspection period begins. It has been a debate amongst real estate professionals that could cause problems for you. Generally, an inspection period begins when the seller and buyer sign off on a purchase contract. The AAR short sale addendum states that contract acceptance occurs when the seller notifies buyer that seller and lender have come to an agreement on short sale terms.
“If Seller and Seller’s creditors enter into a short sale agreement, the Seller shall immediately deliver notice to Buyer.”
Some agents argue that notice is anything in writing, which is consistent with the AAR Purchase Contract. Other agents argue that without the short sale approval letter, there is insufficient notice, and inspection period cannot begin. When a buyers agent is notified of acceptance they should advise the buyer to pursue the inspection because it has actually begun. It is imperative to obtain a copy of the approval letter, but you shouldn’t wait until you receive it to begin the inspection period. It won’t protect you in the end as a buyer. The seller could have given you notice of acceptance a week before getting you a copy of the approval letter.. now you are 7 days into your inspection!
by Evette Cecena, the Queen of HUD on November 27, 2010
Anyone can by government foreclosures in Arizona (otherwise known as HUD homes). What are HUD homes? The U.S. Department of Housing and Urban Development (HUD), becomes the property owner of 1 to 4 unit residential property with FHA-insured mortgages to recover losses on foreclosure claims. When a home with an FHA loan (meaning the loan was insured by FHA) is foreclosed on HUD pays of the Lender and takes over the property. HUD turns the property over to MCB to maintain and sell the property. MCB is an asset management company not the listing broker, however. You do not buy HUD homes directly from MCB.
Nearly anyone who has the cash or can qualify for a loan can buy HUD homes in Arizona. These government foreclosure properties are offered first to owner occupants. Properties that do not sell to owner occupants after a specified period are offered to investors.
These homes are appraised and offered for sale at fair market value. Buyers make an offer during the “Offer Period.” At the end of the Offer Period the bid that provides the highest net return to HUD may then be accepted. Real estate brokers who are registered with HUD may, write up an offer and contract to purchase, and submit it on your behalf. HUD pays your agents commission as specified in the contract.
Contact me today at (480) 206-6425 to schedule a HUD homes tour.
