Columbus HUD Homes

The government gives many incentives for owner occupants to buy a Columbus HUD Home. These incentives worked very well for HUD.  Many new listings are in contract within a week.  If you are in the market for a new home, there won’t be a better time to find a deal and buy it with basically no money out of your pocket.

Here are the incentives offered by HUD:

$100 Down Payment Finance Option (FHA financing only)

The $100 down payment financing is available on most properties through FHA approved lenders. Please note that the $100 down offer applies only if the purchase price is less than or equal to the appraised value of the property. If the purchase price is greater than the appraised value, the purchaser must pay cash in the amount of the difference between the appraisal and the purchase price less $100.

In item 4 of the HUD-9548 Sales Contract in the down payment blank you need to put the following statement: “$100 or TBD.” This is to notify the lender that the intent is to use this incentive, assuming the purchaser qualifies for the FHA mortgage.

Please contact me for a list of HUD approved FHA lenders who offer the $100 down payment FHA program!

$2,500 Sales Incentive (for properties with a purchase price $25,000 or greater)

Beginning October 1st, 2008 all owner occupants (excluding HUD approved non-profit organizations, Good Neighbor Next Door participants, and units of local government) will receive $2,500 at closing for properties with a purchase price of $25,000 or more.
The $2,500 sales incentive can be used to pay for the following items:
• Closing Costs
• Tax Pro-rations
• Repairs to the home
• Replacement of items in the home
• Pay down the unpaid principal balance of an FHA insured mortgage

If the funds are used for repair or replacement of items, the incentive will be deposited in a repair escrow account for FHA financed sales or reimbursed upon submission of receipts.

$500 Broker bonus (for properties with a purchase price of $25,000 or greater)

This is an incentive for real estate agents to make offers on Columbus HUD Homes vs. other houses listed for sale.

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: Columbus HUD Home Realtor buyer incentives, hudhomes, listing

Only HUD registered bidding agents can place a bid on Columbus HUD Homes on your behalf. Make sure to work with an agent who has experience in dealing with the complex paperwork that’s required by HUD. Incomplete contract packages will be rejected and can cause you to lose your winning position!

I recently attended a HUD Home Seller Seminar for Real Estate Agents, presented by Marla Webb from the Ohio NHMS office in Cleveland. Marla stated that 9 out of 10 contract packages are submitted incorrectly, and that only 5 out of 10 contracts get ratified (fully accepted) by HUD. Wow. Here is MY track record: 100% of my buyer’s contracts have been ratified (accepted) by HUD. I’d be happy to work with you, too and guide you through this process.

How low can you go?

HUD has a proprietary review process for accepting bids. We have been tracking bidding statistics and can help you determine what amount should be meeting internal guidelines. HUD will accept the bid that has the highest NET, provided it meets the threshold amount.

You won – what next?

Congratulations! The next 48 hrs are crucial. HUD has to receive a COMPLETE CONTRACT PACKAGE WITH ORIGINAL SIGNATURES within 48 hrs or you may forfeit your position! Ideally, your preferred agent has completed the contract package with you at the time you submitted the bid, in order to be adequately prepared. The two most important items YOU, the buyer, have to provide are:

• Earnest Money Check in certified funds for $500, $1,000 or $1,500
• Lender pre-approval Letter stating loan amount and type of loan

HUD will review the contract package to make sure everything has been included and everything has been filled out correctly. HUD will email the ratified (accepted) contract to your bidding agent within 10 days.

Important Deadlines

The following time lines start with the day your agent received the ratified contract:
INSPECTIONS: must be completed within 15 days and CLOSING: no later than 60 days. Don’t forget to have a locksmith at the ready to change the locks for you!

More about the INSPECTIONS: must be completed within 15 days. ALL HUD properties have been winterized. Your agent needs to submit a Utility Activation Request to HUD’s appointed Management Company BEFORE turning on the utilities. You then have 72 hrs to complete your home inspections and appraisal (only needed for Conventional or VA loans) before required to submitting proof to the management company that the property has been re-winterized again.

We are HUD specialists and have the inside track to all HUD properties in the Columbus Ohio area. Our team has the experience to help you guide you through the process.  Let’s chat and see what opportunities are there for you!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: bid ratified contract nhmsi, Columbus HUD Home Realtor how to submit offers, hudhomes, listing

We already explained two easy ways to explore Columbus Houses from your computer: Google Streetview, which gives you street level pictures homes, businesses and the roadway in general, and Microsoft Live’s Bird’s Eye View, which allows you to see Columbus HUD Homes from above.

Combine these 2 tools with our inside pictures and video previews and you get a very good visual impression of a Columbus House. Today let’s look at another tool that gives you essential information about a property: the Property Records of the County Auditor.

Most County Auditors have a website where the general public can access property information. Typically, you see the owner’s name and mailing address, the size of the property including number of rooms, the auditor’s tax value of the home, the most recent sale price, the sale date and the annual property taxes.

Why is this useful when you analyze Columbus HUD Homes?

You certainly want to know what the auditor thinks the property is worth, because it determines how much you will have to pay in property taxes. We’ll show you how to appeal this valuation, but it’s a lengthy process.

You also want to compare the property size and number of rooms to what HUD has published. The most recent sales price gives you an idea of what the property was worth at that time.

Some auditors have access to property maps (GIS), so you can see the layout of the lot and its surroundings. You also may see potential easements which give utilities or cities certain rights to access your property.

Here are the links to County Auditor’s web-pages in Central Ohio:
Delaware County Auditor
Franklin County Auditor
Fairfield County Auditor
Licking County Auditor
Madison County Auditor
Pickaway County Auditor
Union County Auditor

If you need help using these tools, feel free to email or call.  We’d be glad to help you analyze your HUDhomes purchase

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

Technorati Tags: Columbus HUD Homes, county auditor, GIS, hudhomes, listing, Realtor

Today’s featured HUD listing is 15 years old, located in the Walnut View subdivision on the far east side of Columbus. This charming stone front hudhome features a vaulted great room with overlooking loft. The open floor-plan compliments the first floor master suite. It also comes with a 3-car garage.

Click on the address below to view all 18 pictures:
2721 Barrows Road, Columbus, OH

HUD OWNED 3 BR w/Loft & 3 car Garage
OFFERED for $82,000
CASE NUMBER 413-369493
BID DEADLINE 1/25/09 for Owner Occupants
 
Watch the video to see the inside:

 
Bidding is open for owner occupants till Sunday Jan 25, 2009. This Columbus HUD Home has many nice upgrades – take a look at it.

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: Columbus, Homes, HUD, hudhomes, list, listing, Realtor

When you buy a Columbus HUD Home you will typically pay less than market value. Most likely your purchase price was lower than the auditor’s tax value. If this is the case you are entitled to lower property taxes.  However, this tax reduction is not automatic. You need to file an appeal with the board of revisions.

Here is what you do:  You need to complete a “Complaint Against the Valuation of Real Property” form DTE-1, which is the same for all counties in the State of Ohio. You must submit this form before March 31 of the following year. Include documentation to show why the value of your home is lower than recorded by the auditor. The best documentation is your HUD-1 closing statement from when you purchased you Columbus HUD Home. You may also include a list of comparable sales – your real estate agent can prepare this list for you.

It will take a few months for the county to review your request. You will be invited to appear before the board of revision. When you appear in front of the board you simply bring the documentation you already submitted, including a copy of the HUD-1, comparable sales, and an appraisal (if you have one and if it is lower than the auditor’s value). The review only takes 5 to 10 minutes, if you bring all this documentation. The board mails a written notification of its decision a few months later.

As property taxes are paid almost a year after they were incurred, the revised valuation is retro active, and you can get a refund on taxes you already paid.

It is really important to file this complaint, especially in times of falling property values. Many Columbus HUD Homes have been overvalued by the auditor and you have a very good chance to get your taxes adjusted to the purchase price of the property. 

The appeal may be a lengthy process, but it is not difficult. You can do it yourself. I appealed the valuation of all my rental properties earlier this year (March 2008).  I provided closing statements and comparables to the board of revisions in July 2008, and in December 2008 I received notification of the adjusted values.  Franklin County reduced the valuation of all my properties to their purchase prices – which were lower than market values, because I purchased most of these properties from short sales or foreclosures.  In average the auditor’s value was reduced by thirty three percent (33%)!! This means that my property tax bill will go down by one third.  This is really significant. If you consider that property taxes of an average Columbus Home are around $3000 per year, you will save $1000 per year!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: Columbus HUD Home Realtor property valuation complaint, hudhomes, listing

It may be hard to believe for some, but the truth is: Columbus HUD homes sell like “hot cakes”. Despite all the negative economic news and the bad press real estate gets these days, there are home owners out there who are willing and able to buy properties.
 
As a matter of fact, all 3 HUD homes we previewed last week are already in contract. If you want to buy a good HUD home deal you have to be ready and competitive.  Let’s look at the bids submitted for these 3 homes:
 
3392 Omega Drive, Columbus – List price: $120,000
Accepted purchase offer: $120,505 (100% of list)
1005 Okatie Drive, Galloway – List price: $140,000
Accepted purchase offer: $145,000 (104% of list)
6938 Retton Road, Reynoldsburg – List price: $78,400
Accepted purchase offer: $70,000 (90% of list)

What do these numbers tell you?  First of all, it shows that properties in move-in or excellent condition are sold at or even above the asking price.  Properties that need just a little cosmetic work, like the featured listing on Retton Road, can be purchased for steep discounts. And if a property needs a lot of work the seller (HUD) is even more motivated to reduce the price. Most importantly, this shows that good deals will go fast!
 
That said, if you want to get your foot into the door and claim your piece of the pie, you need to be ready to make an offer quickly.  Call me ASAP and I’ll help you define a strategy to submit your winning bid for a Columbus HUD Home! You can’t win if you don’t bid!
 

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: Columbus HUD Home Realtor bid statistics accepted offer, hudhomes, listing

You probably wonder why there are so many different Bidding Deadlines for Columbus HUD Homes? Let me try to explain the differences and the impact they have on your bidding strategy.

NEW Listings – Owner Occupants Only for 10 Days
A property that is listed for the first time on http://www.nhmsi.com will be offered for owner occupants only, starting on a Friday. This is called the PRIORITY PERIOD and lasts for 10 days. Bidding deadline for a new listing ALWAYS falls on a Sunday and ends at midnight.

OPEN Listings – All Bidders DAILY
HUD will review all offers received during the priority period. If HUD did not receive an offer meeting internal guidelines then the listing opens up for bidding to any qualified buyer. Owner occupants and investors can bid. Bid Deadline is now DAILY at midnight.

PRICE REDUCTIONS – Owner Occupants First for 5 Days
Sometimes a property does not sell during the open listing period. After a certain time HUD will reduce the price on this property and publish the re-listed property on Fridays again. The first 5 days following a price reduction the property is available for owner occupants only. This shortened priority period ends the following Tuesday at midnight. From time to time you can find HUD listings with several consecutive price reductions.

Open PRICE REDUCTIONS – All Bidders DAILY
Should the property still not sell during the shortened priority period, it then becomes available for bidding to all qualified buyers again. Deadline for bidding is now DAILY at midnight.

RE-LISTINGS – Owner Occupants First for 5 Days
Occasionally a property that was already in contract falls out of contract again. In that case HUD will offer the property for sale again and re-post the listing on a Friday. The price may be the same as before or reduced. A re-listed property is available for owner occupants only during the first 5 days. These bidding deadlines fall on a TUESDAY at midnight.

Open RE-LISTINGS – All Bidders DAILY
As before, if the property did not sell during the priority period for owner occupants, the listing will open up to all bidders with a daily deadline at midnight.

CONTRACT ACCEPTED – WHAT NEXT?
Congratulations! You won! Hopefully your agent was prepared for the good news and you completed all the paperwork BEFORE submitting your bid. You have now exactly 48 hrs to submit the complete contract package to NHMSI.

Faxes are not allowed, and contracts need to be submitted with ORIGINAL signatures in blue ink.
HUD will review your paperwork and email your agent once your contract has been fully accepted (ratified). This process will take about 7-10 days.

I am a HUD registered bidding agent and can help you find and bid on any HUD home. I will make sure to double and triple check all of your paperwork so our contract gets accepted the first time! Call or email me anytime with any questions you may have. I am looking forward to helping you purchase a new home soon!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: Columbus HUD Homes Realtor NHMSI bidding deadline, hudhomes, listing

When you are looking for HUD Homes you need to know that a private company called “National Home Management Solutions” or NHMSI is handling all HUD home sales in the State of Ohio. As a buyer you can’t work with them directly – you need to be represented by a real estate agent.

A competent HUD Realtor can help you through the paperwork jungle that comes with buying a house from the government. A good agent will get you the best deal available.

If you just started with your search you should check the following places to find HUD Homes.  We suggest you search:

NHMSI Website

This is the most up-to-date place for finding HUD homes.  You can search by County, ZIP code or City and download all the property information, including a condition report and the HUD mortgagee letter. Go to www.nhmsi.com to start your search.

Columbus MLS

You can find HUD listings on the Columbus MLS.  Unfortunately, this information is sometimes out of date. An offer may have been accepted on a home, while the MLS listing has not been updated.  Furthermore, you will need the help of an agent to search for information in the property description, such as the term “HUD Owned”.

Columbus HUD Maps

We decided to implement a FREE service to make it easier for home buyers to search for HUD homes.  When you subscribe to the email newsletter at the end of this post you get a weekly Columbus HUD Home Map.  We take the latest information from NHMSI’s website when listings are updated every Friday and publish all homes on a Google map.  It is much easier to search for HUD homes on a map, and you can still link to the same information published by NHMSI.

Check it out now. You’ll be suprised how easy it is to search for Columbus HUD Homes on a Google map.

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: Columbus HUD Home Realtor NHMSI MLS, hudhomes, listing

With the number of foreclosures at an all time high in Central Ohio, the federal government is becoming a major owner of real estate.  When a bank forecloses on an FHA loan and repo’s the house, Uncle Sam becomes the home owner, because the government agreed to insure these loans.

Not surprisingly, lots of homes end up in the hands of the government these days. HUD must liquidate these “non-performing assets” to recoup some of the money.  HUD tries to sell these properties as quickly as possible, usually at a substantial discount to the buyer.

Columbus HUD Homes offers a great opportunity for home buyers and investors to get into a nice house for below market value. Sometimes HUD Homes are less expensive than bank owned REO properties or even Bank Shortsales.  Many HUD Homes are in very good condition and need just a little paint and carpet to look like new.

There are other reasons why you should consider buying a HUD Home.  Most importantly, they can be purchased with FHA loans for as little as $100 out of your pocket.  This is a really super deal, because most banks require 20% down these days. There are special FHA loans for buying properties that need some work and offer the buyer rehab financing.

In summary, you can buy a Columbus HUD Home

• with no money out of your pocket
• at 10% – 20% below market value, and
• FHA will even loan you money for the rehab.

Before you make an offer to HUD you will need to work with a specialized HUD Home Realtor, someone who is authorized to submit bids for these homes. There is a lot of paperwork involved and you can’t bid as an individual. The government will reject offers even with minor errors in the paperwork. 

On this website you will find all the latest news about HUD homes, how to buy and finance them, and how you can get a killer deal in this slow real estate market. Come back often to learn more about this unique, once in a life time opportunity and register for our newsletter with the newest Columbus HUD Homes displayed on a map, featured properties and lots of useful information for buying your new home.

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS 
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

Technorati Tags: Columbus HUD Home Realtor, hudhomes, listing