HUD has increased the number of new listings. A total of 45 new Columbus HUD homes were added to the market today.
If you like the North side of Columbus, you are lucky. You will find new HUD homes everywhere from Hilliard to Powell, Upper Arlington, Lewis Center, Westerville and New Albany.
The Upper Arlington house at Wickliffe has been relisted without a price reduction.
There’s also a new HUD listing just around the corner at Nottingham Road. For this tiny ranch (1,220 sqft, 1 bathroom) which is listed as Uninsured they want $196,000!
Now give me a break …
I noticed that many of these new HUD listings are uninsured. This means that the estimated cost of repairs is more than $5,000. So you can’t get a regular FHA loan for this purchase, but you have to obtain a rehab loan, such as the FHA 203K loan. These loans are more difficult to close than standard FHA loans, and there’s a high probability that these properties will fall out of contract, because the buyer can’t get financing.
Why are many properties uninsured?
I believe the damages caused to many HUD homes go back to the time before they were actually owned by HUD. It takes 6 to 10 months to complete a foreclosure. Afterwards, the bank may have to wait another 6 months until the Sheriff’s deed is issued.
So you have more than a year between the actual default of the borrower and the transfer of the property to HUD. A lot of damage can happen during that time.
The most common damage is to the pipes. If there’s any water in the pipes, they may freeze during the winter months and crack. These cracks lead to leaks that cause water damage to the house, which turns into mold when the weather gets warmer.
It has been my experience that HUD takes pretty good care of its properties. But what happens to Columbus houses before they become HUD homes is completely out of their control.
Here’s a summary of the listings you will find on our HUD homes map:
Listing Statistics
Total homes available: 173 (last week: 161)
Owner occupants: 100
All bidders: 73
New listings: 45
Sunday deadline: 18
Relisted/Price reduced: 37
Median Price: $71,200 (last week: $70,000)
Average Price: $70,145 (last week: $69,153)
Highest: $196,000
Lowest: $9,000
Homes less than $50,001: 66 (last week: 61)
Between $50,001 & $100,000: 74 (last week: 67)
More than $100,000: 33 (last week: 33)
Call me today at 975-9650 for showings on Sunday!
Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650
