Much has been in the news about the March 26, 2011 HUD auction at the JW Marriott at Desert Ridge. 150 homes will be auctioned by HUD with many good incentives to the buyers. HUD home buyers have had a number of questions and we thought we’d try to simplify things with some answers. Our friend, Judy Giel with Guild Mortgage has helped and the basics for buying a HUD auction home are below:
The Basic Rules For Buying a Home During the March 26, 2011 HUD Home Auction:
Q: How many homes will be auctioned by HUD on March 26th, 2011?
A: There will be 150 homes auctioned off that day.
Q. How much down payment will I need to buy a HUD auction home?
A. $100.00 down payment instead of the customary 3.5% down. However, the buyer(s) must come in with a cashiers check payable to HUD and buyers name for $1000.00. No personal checks will be accepted. No exceptions.
Q. Can investors buy a home at this HUD auction:
A. No, only owner-occupied are eligible. No investors will be allowed to buy one of these homes.
Q. What condition are the HUD auction home in?
A. HUD says all homes are in ready to move in condition with no repairs needed and will pass an FHA appraisal.
Q. Is there any help towards my closing costs and other home buying fees?
A. HUD will pay 3% towards buyers(s) closing costs and/or prepaids.
Q. Can I come by myself or do I need a real estate agent or Realtor?
A. A Realtor MUST accompany the buyer(s) or one will be assigned to them at the auction. The Urban Team would be delighted to represent you at the auction and will be there for you for the entire home buying process should your bid be accepted.
Q. How much do I have to bid to buy the house?
A. It is an auction so there will probably be a number of people bidding on each home. Each property has a reserve bid and the head of HUD’s REO Division will be there to evaluate the highest offer if it is less than the reserve and make a decision on-the-spot about accepting the lower than reserve offer. If the bid goes over the reserve, all bidders are pulled aside and told they have exceeded the reserve and anything bid over that amount must be paid as extra cash at closing.
Q. Do I need to be pre-approved by lender to buy one of these homes?
A. The buyer(s) must have a pre-qualification letter from their lender on lender letterhead to accompany their bid. Judy Giel with Guild Mortgage is well versed in the HUD rules and can work with you to get your pre-approval letter for the Phoenix HUD home auction.
Q. How can I see what homes are available during the auction?
A. HUD has a web site with all the homes currently being offered in Arizona.
Q. Can I look at the homes being sold at the HUD auction prior to the auction?
A. You can view the homes during the upcoming open house period being held on Saturday & Sunday, March 19th and 20th from 11am –3pm. This will be your only opportunity to view the interiors and back yards of the homes. You can drive by the homes anytime before the auction.
Q. What time will HUD be auctioning the homes at the March 26, 2011 event?
A. The auction is set to start promptly at 1:00 PM and will last as long as it takes to go through the list of homes.
WHAT TO DO PRIOR TO THE MARCH 26TH 2011 HUD HOME AUCTION?
The Urban Team has created a separate post to cover what you should do to prepare for the HUD home auction being held on March 26th at the Marriott Desert Ridge also called the Hudson & Marshall Phoenix HUD home auction.