A lost opportunity for a solid buyer because someone else may not have had it all together BEFORE they made an offer to purchase.

By
Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

Bidding on HUD Homes is a trick processWe lost a HUD bid a few months ago. And not by a little bit either, as the winning bid was about $10,000 higher than ours on a $100,000 house.

We were in second place, and indicated that we would accept a backup position. As time passed, our clients purchased another property and we have already closed and they are satisfied with their purchase.

Today I was notified that the house is back on the market.

I can't help but wonder why it took three months for the original HUD purchase and sale to fall apart. In most cases with a HUD home, title is cleared before the home is placed on the market so I have to assume the issued was on the buyer's side of the deal. If there was a financing issue, wouldn't that be discovered in less time than three months?

I hate the fact that my client lost a great opportunity because someone else did not have his or her act together. And I can't help but wonder if the extra $10K bid had anything to do with either qualifying for the loan or contributed to buyer's remorse.

Hopefully, we'll find another buyer for the property. In the meantime, we'll just keep pressing on! 

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Rainmaker
468,836
Janice Roosevelt
Rory Burkhart Team, Keller Williams - West Chester, PA
OICP ABR, ePRO,Ecobroker

I am sending positive thoughts that you and your clients will find the best

Sep 18, 2009 07:26 AM #2
Rainmaker
766,777
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Richard,

We are seeing this mor eoften, and not just on HUD homes.  Folks pass up a house showing "Contingent," and then it pops up again in a week or a month, status revised to "Active."

Might get more aggressive showing "Contingent" homes, but who can wait around?  and who can wait 3 months?

Sep 18, 2009 07:46 AM #3
Rainmaker
543,273
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

ToulaRosebrock,com

Hi Richard:

I don't know what's taking these banks so long with foreclosures right now...

I have an offer in on a foreclosure for about 45 days and still no answer from the bank.

 

Sep 18, 2009 07:49 AM #4
Ambassador
1,666,213
Richard Weisser
Better Homes and Gardens Real Estate Metro Brokers - Newnan, GA
Richard Weisser Coweta Newnan Homes for Sale

Mel...

It's just so frustrating sometimes how you have to move so fast and then wait so long! THX

Janice...

Did you notice that I changed that title a few posts back based on your suggestion? Thanks for the positive energy!

Mike...

We assumed that any issue would pop up in the first month ,,, I don't think that anyone would wait three! Thanks for the comment!

Sep 18, 2009 07:53 AM #5
Rainmaker
893,958
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Richard, it looks like the offer got hung up in the bureaucracy. Too bad for your clients. Glad to here they did find something else they were happy with.

Sep 18, 2009 07:54 AM #6
Rainer
175,528
Julia Odom
Select Realty Professionals - Chattanooga, TN
Chattanooga Homes for Sale

That is really strange, I wonder if it was an FHA rehab loan they were trying to get. That's the only way I can think of that HUD would keep something off the market that long.

Sep 18, 2009 08:12 AM #7
Rainer
113,053
Jason Simonson
Menomonie, WI
Realty Executives - Menomonie WI

We have a forclosure that we have been waiting almost 5 full months on. I'm surprised the buyed don't walk.

Sep 18, 2009 08:18 AM #8
Ambassador
567,698
C Tann-Starr
Tann Starr & Associates, Inc. - Flushing, NY

Richard, I was recently in REO hell and we lost out to a few thousand dollars more. The wait was ridiculous. I felt as if I was stalking the other firm for an answer. The stress of waiting really whomped...

Sep 18, 2009 08:37 AM #9
Rainmaker
563,876
Mike Saunders
Lanier Partners - Athens, GA

Richard - I have had that happen with REO's and short sales but never with HUD. Glad you found a place for your buyers. Hope you get buyers for the on the market again home.

Sep 18, 2009 09:38 AM #10
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Chris Ann Cleland
Long & Foster REALTORS®, Manassas, VA - Bristow, VA
Associate Broker, Northern VA

Richard:  Three months is a long time for something to fall apart.  Very odd.  Is it possible that there was an issue uncovered during the home inspection?

Sep 18, 2009 10:16 AM #11
Rainmaker
1,780,637
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Richard....there is just no good reason for this to happen.  it is th emain reason many people won't deal with a HUD home.

Sep 18, 2009 12:11 PM #12
Ambassador
971,326
Jason Crouch
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)

Richard - I agree - it sounds like an awfully long time for a HUD home for them to figure out that it wasn't going to work.  Sorry to hear that, but at least your clients found another place!

Sep 18, 2009 12:22 PM #13
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Richard Weisser
Better Homes and Gardens Real Estate Metro Brokers - Newnan, GA
Richard Weisser Coweta Newnan Homes for Sale

Toula...

Since this was a HUD home I can only assume that the buyer was the cause of the delay. Who knows, though? THX

Michael...

That's the important thing, that's for sure! THX

Julia...

No, the repairs were under $500 and therefore wee escrow items, but good thinking. THX

Sep 18, 2009 02:32 PM #14
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901,029
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Richard, sometimes it just stinks. But I am glad to hear that you are just soooo busy! I hope we see that activity soon. 

Sep 18, 2009 08:50 PM #15
Rainmaker
573,927
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

In most cases it all happens for a good reason. I hope they are in a home they love.

Sep 18, 2009 09:14 PM #16
Rainmaker
401,971
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Richard:

Financing is taking a bit longer these days, but, three months is pretty unreasonable. The only loan I have had recently that has taken that long was a 203k rehab loan.  That was touch and go for 2 1/2 months but it finally closed.

 

 

Sep 19, 2009 07:19 AM #17
Ambassador
326,564
Paddy (Patricia) Pizappi
RJ Smith Realty Real Estate Solutions - Pine Bush, NY
Real Estate Associate Broker Hudson Valley NY

This is a often repeated situation these days. Hope that the buyers who lost out found something just as good or even better.

Sep 19, 2009 08:13 AM #18
Rainmaker
437,367
JL Boney, III
Russell and Jeffcoat - Columbia, SC
Columbia, SC Real Estate

The wait seems to be getting longer and longer to hear anything on REO's and HUD homes. Seems it shouldn't have to be so difficult.

Sep 19, 2009 08:58 PM #19
Rainmaker
630,071
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Richard,

It is possible that the $10,000 had everything to do with the sale of the property.  Especially when the buyers have to show that they have the funds available.

Sep 19, 2009 09:44 PM #20
Rainmaker
236,298
Kim Peasley-Parker
AgentOwned Realty, Heritage Group, Inc. - Sumter, SC

Wow, that is terrible that your client lost this property.  I am glad you were able to find another property for them.  But three months does seem excessive.  Wonder if they buyer might have been approved and with our changing environment, their approval turned around.

 

Sep 20, 2009 10:24 AM #21
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