If you are looking to see or purchase a HUD property in or around Chatham County North Carolina feel free to contact me today. Only HUD brokers are able to show HUD properties, of which there a very few when compared to standard real estate agencies. In Chatham County, I am one of approximately 5 HUD brokers, and there are nearly 150 standard real estate brokers. Becoming a HUD broker is a lengthy and involved process, that requires background checks, credit checks, and federal approval.
It’s a common perception that foreclosed properties are more challenging than standard property sales due to the insensitivity and bureaucracy of banks. Unfortunately, HUD properties can make foreclosed properties seem like a cake walk. Because they are handled by the federal government, HUD properties are absolutely non-negotiable.
Often times, very strict and difficult deadlines are put on buyers in order to complete a HUD purchase. There have been many occasions where we have been contacted at minutes before 5pm, and told that signatures are needed from the client, and are due by 10am the next morning, otherwise the contract is no longer valid. This puts an incredible burden on both the agent and the buyer as we both scramble to finalize the paperwork, drive it to the airport, and have it sent via expensive overnight shipping to the HUD offices. While this may sound like an extreme example, it’s something that’s happened to us dozens of times.
The best example to share on how stubborn and arbitrary the government can be with regards to HUD dealings happened to one of our clients several years ago. A property was originally listed for $70k, and our clients bid of $65k was the best offer. During the process, while under contract, the HVAC units were stolen from the property. Our client made a reasonable request, that either the units be replaced with similar equipment, or the price of the property be reduced by $5k. The government agreed to neither of the requests, and the contract was terminated. The property did not sell for another two months, until it was finally purchased for only $50k.
Going into a HUD foreclosure purchase, know that it’s worse than just an “as-is” transaction. You aren’t agreeing to buy the property as it is on the day you make the offer, you’re agreeing to purchase it as it is on the day you close. That’s a very big risk to take, and should only be done so by people with the resources and experience to handle situations that turn sideways.