In Pursuit of a Winning Bid
For the last eight months I have been working with a first time home buyer in the $80,000 price range. Based on her criteria, the area she wanted to live and price of the average home in the area, we knew it wouldn't be an easy search.
Not difficult, just not easy! Still, we were able to find homes she liked and made a few offers. One HUD owned home we lost by about $250.00. A couple of bank owned homes needed too much work; a few short sale homes we never received an answer on. Another lost HUD - this time by a lot more. Finally, last week we received confirmation our bid was accepted!
Not All Offers are Winners
The same week another offer made on a HUD home for a different client was rejected. Just so you know - I don't like rejection! Why the difference? As I stated last week, ...
An escrow account is a designated savings account into which funds get deposited for a specific purpose.
With respect to real estate and home loans, escrow accounts are used to pay real estate tax bills and homeowners insurance payments.
Escrow accounts are managed and disbursed by lenders.
When a homeowner 'escrows' his mortgage, along with his scheduled monthly mortgage payment, he must also send an additional payment to the lender equal to 1/12 of the home's annual real estate tax bill plus 1/12 of the annual homeowners insurance bill.
By sending a pro rata portion of the tax and insurance bill each month,...
HUD Homes are a Good Value
HUD homes in Indianapolis generally represent a great value for the home buyer's. Since the inception of the $8000 tax credit for first time home buyers, HUD owned homes have literally been 'flying off the MLS active list', with many being sold in the first ten days. As we near the end of the time frame for first time home buyers to receive the tax credit, REALTORS® in Indianapolis are witnessing a surge in activity and prices of HUD homes.
Why the sudden interest in HUD homes? Although HUD doesn't go in and repair the homes they own, many of their homes are in much better condition than bank owned homes. They do inspect the homes and often offer an insured escrow amount for repairs. There are those which are uninsured and need more work, but for the most part, HUD homes are a good value....