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Bank REO
Want a Good Buy?
HOME REALTY is the only local member of The National REO Broker's Association. What's a REO? It stands for Real Estate Owned, meaning it's a property that a lender acquired through foreclosure. While you can't buy them for a dollar, there are often very good buys to be made. These properties often sell quickly, so if you are interested, call Dennis Hawes at HOME REALTY to be added to the call list when these properties become available.
Click Here To Take a Look At REO'S and HUD Homes
HUD Owned HOMES
What is HUD HOME?
The United States Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA), which provides federal insurance against default on home mortgages. If the payments are not made on an insured FHA loan, the mortgage forecloses, or accepts a deed-in-lieu, then files an FHA insurance claim for the unpaid loan balance, and conveys title to the property, but acts as receiver when the conveyance occurs. The Management and Marketing (M&M) Contractor then begins the process of working to maintain and sell the properties according to HUD guidelines. The M&M Contractor is First Preston Management, Inc. or Southeast Alliance, L.L.P., depending upon the state of territory.
Who Can Buy a HUD HOME?
Any qualified purchaser can offer to buy a HUD home, regardless of race, color, religion, sex, national origin, handicap, or familial status. We abide by all U.S. Fair Housing standards and guidelines. Before making an offer, prospective buyers must have a letter, written on the stationery of a mortgage lender, stating that they have been pre-qualified (with Credit Report performed, reviewed, and approved by the lender) for the loan amount that will be needed. Buyers paying all cash must provide proof of available funds.
Who Can Sell a HUD HOME?
Currently licensed HUD registered real estate brokers, and the agents associated with them, may show, advertise, and submit offers on HUD owned properties. HOME REALTY is HUD registered and can help you with the purchase of any HUD owned home in The Commonwealth of Virginia.
"As-Is" Policy
All HUD homes are sold strictly "AS-IS." HUD does not make any repairs. There are no representations or warranties, expressed or implied, on the houses. HUD does not guarantee the condition of any house, listed FHA-insurable or not, or whether it meets local codes or zoning requirements. Purchasers must make sure the home is in the condition they are willing to accept. the HUD-92564-CN addendum "For Your Protection: Get a Home Inspection" must be signed at the same time as the Sales Contract, and make certain the Purchasers understand. The Purchaser has fifteen (15) days after the ratification date on the Sales Contract to have all inspections made. The "Home Inspection Policy" and a request form are included on the web site and must be submitted to the Property Management Center, along with a copy of the ratified Sales Contract. No fee to First Preston or Southeast Alliance is required. Utilities may be turned on at the Purchasers expense. The selling agent must accompany the prospective buyers and inspectors AT ALL TIMES prior to closing. Please carefully read, and make certain your Purchasers understand and accept all the provisions of the Conditions of Sale on the second page of the Contract, notably Paragraph B. Results from home inspections will not be a basis for canceling a sale, except in cases involving FHA financing.
Pre-Qualification of the Purchaser
Brokers are responsible to see that the prospective buyers have been pre-qualified for a loan by a lender who has issued a letter on the lender's letterhead to the Purchaser. Letters from mortgage brokers who do not actually lend funds are not acceptable.
The pre-qualification letter must be included in the contract package. For purposes of this program, "pre-qualification" means a loan application has been made, and a preliminary loan commitment has been obtained from a recognized mortgage lender who states that a preliminary Credit Report has been performed, reviewed, and approved. Furthermore, the letter must state that on the basis of this review, the mortgage financing for a specified dollar amount sufficient to purchase the property should be available to this Purchaser. Letters must be current, that is, dated and signed within 60 days or less prior to the bid date.
Earnest Money Deposit
The required earnest money deposit that the selling broker must have secured from the Purchasers prior to bidding on their behalf is either $500 (for $50,000 or less sales price) or $1,000 (for $50,00 or more sales price). Before bidding, the selling broker must have possession of the earnest money deposit in form of CERTIFIED or CASHIERS CHECK or MONEY ORDER. The earnest money check must be payable as follows; HOME REALTY Escrow Account
Click Here To Take a Look At REO'S and HUD Homes
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