Where are all the HUD homes?
I thought the new management company (HomeSource) was slow getting them on the market or maybe since HUD gives much more details about each property, which now includes a home inspection report as well as Lead Base report, it was just more tedious and thus took more time to prepare to market. Just as a side not, if you are purchasing a HUD home and it has Lead Paint, HUD will pay for the abatement, if you purchase the home using FHA funding, this could save you a ton of money.
Well, getting back on track. Some buyers insisted that there was a conspiracy by greedy investors. A few buyers commented that someone is paying off someone to get insider information about properties presented to the public. I quickly dismissed that notion, but you know everyone has his or her opinion.
Well I called HomeSource (Representatives for HUD )about a week ago, and presented the question, where are the HUD homes? Well I did not ask quite like that, but I told her my client think something weird is going on, I need an answer. The front desk person did not know but kindly informed me that there was a HUD update training session coming up; I said great, I want to sign up.
Today I went to the HUD update training session, as usual very informative, I asked one of the representative for Home Source, Where are the HUD homes? The representative informed me that the only reason that there are so few HUD homes on the market was because in recent years, especially during the selling frenzy of the last few years FHA financing was far and in between. The majority of financing was conventional, mainly because sellers was not accepting many offers with FHA financing and since the majority of all foreclosures happen within the first three years... there you go. Therefore, I guess there is no HUD conspiracy after all. What a simple answer, now if I can only convince my buyers.
Has anyone else notice the shortage of HUD homes in their area?
