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To enhance your buying and selling experience, it’s our job as real estate professionals to provide you with as much valuable information as possible. It is essential that the buyer or seller be aware of all aspects of the real estate market before making a major decision. Whether it be through newsletters, checklists or news articles, we are here to make this process stress-free and rewarding. Please access our free reports today!

Summer of 2012 Market Trends - By Dan Brunner
Wonderful article by Dan brunner of the Paschal Group, increadible information to have at your hands.
Tax credits get investors' attention
The one residential sector that has managed the quickest resurrection after the turmoil of the housing crisis and ongoing recession is affordable housing. Admittedly, this is a niche sector that doesn't play by the same rules as other housing markets, including multifamily, but it still faced tough times as late as one year ago, and as well as things appear now, there are still crosscurrents of
DFW Residential Foreclosures Diip
The filing deadline has passed for foreclosure postings to be filed at county courthouses throughout the State of Texas for the upcoming foreclosure auctions to be held on Tuesday, August 2nd, 2011. Therefore, Foreclosure Listing Service, Inc. has completed our research of the August foreclosure postings. In a meeting today, George Roddy, Sr., President of Foreclosure Listing Service, Inc., announced, “On two counts, August’s 4,024 residential foreclosure postings brought
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Contacts


Linda Jean Paschal
817-271-6172(Cell)



Roger Paschal
817-401-1767(Cell)



What is a HUD Home?


A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

The United States Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA), which provides federal insurance on home mortgages. If a homeowner fails to make payments on a FHA loan, the mortgagee forecloses and files an insurance claim with HUD. In exchange for paying off the unpaid loan balance to the mortgagee, HUD receives title to the property. At this point, the house becomes a HUD home.

After the mortgagee conveys the property to HUD, the Management and Marketing Contractor (M&M Contractor) begins the process of managing and marketing the homes according to HUD guidelines

 

About HUD's Good Neighbor Next Door

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works

Eligible Single Family homes located in revitalization areas (Contact the Paschal's for a list of Homes) are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for the first five days of the listing.

How to Participate in Good Neighbor Next Door

Ask us to e-mail you the listings for your area. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply HUD's regulations for the program.

HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

The number of properties available is limited and the list of available properties changes weekly.

To learn more, please contact us and ask about the HUD Good Neighbor Sales program.

 

 

Investor's Corner

Are you looking for the perfect investment opportunity? Can't find the right bargain? We can help! Let us know what your needs are and we will e-mail you a link to your own web site that will list all the properties according to your wishes!

Advanced Home Search


Never Miss The Perfect Home Again!

Here's your chance to be notified of new listings that meet your criteria, absolutely FREE!

Not only will you be notified by email of all new listings that match your search criteria within our system, but your home search will also be compared against other participating agents' listings within your desired area(s). All new listings added to the MLS that match your criteria will be emailed to you.

Note: Our home search form lets you create and save multiple Home Search profiles. You may ask us to update these profiles or cancel at anytime.

In addition to our automated listing search results, you will receive an up-to-date list of homes for sale customized to your requirements ... please, be as specific as possible ... the more detailed information you provide the better we can serve you!


Making an Offer on a HUD Home


  • Offers must be made through a HUD registered broker
    If you want to make an offer on a HUD home, you must bid through a HUD-registered broker/Agent. All agents with the Paschal Group are registered with HUD, we have worked with many clients successfully bid and obtain HUD property's. We will work with you from the beginning to the closing table.
  • How to find a HUD home 
    Call or e-mail us today. We will obtain a list from the MLS, which contains detailed information on the home that matches your specifications. We will then e-mail the homes to you for your review.
  • Offers must be submitted through an electronic bidding process
    All offers must be submitted through an electronic bidding process, this is where we come in, we have the training and the expertise to do this right the first time.. Most offers are made via computer through the Internet. An option to bid via telephone is also available for brokers who do not have computers. The electronic bids are stored in the computer system and, at the appropriate time, calculations are automatically performed to determine the apparent highest net offer to HUD.
  • The apparent highest bid is acknowledged by the M&M Contractor to the Paschal Group, (that is if we are the ones who are working with you) who will be notified to send in a correct, signed sales contract within 48 hours. If the contract is not received within 48 hours or is incorrect, the home will be returned to the market or acknowledged to the next highest bidder. All acknowledged bids are subject to cancellation for prior sale, electronic error, and other conditions (see Disclaimers). An acknowledged bid does not constitute a sale; only a correct contract that is counter signed by the M&M Contractor and returned to us as your agent allows you to proceed to closing.
  • Initial Listing Period
    The initial listing period, which is generally the first public listing for HUD homes, is 30 days. During this time, priority is given to owner-occupants who are buying the home as their primary residence. All owner occupant offers received during the first ten days of this initial period are considered to be received simultaneously. On the first business day after this period, these bids are reviewed to determine the highest acceptable offer to HUD.

    If there is no acceptable bid, bids may be reviewed on a daily basis for the remaining 20 days. Bids received at different times during the day will be considered received simultaneously, and the highest acceptable net bid will be acknowledged on the date opened. If the property remains unsold after 30 days, it is made available to investors as well, and bids are reviewed on a daily basis. 
  •  

  • An owner-occupant purchaser is defined as a purchaser who intends to use the property as his or her principal residence; a State, governmental entity, tribe, or agency thereof; or a private nonprofit organization. Governmental entities include those with general governmental powers (e.g., a city or county), as well as those with limited or special powers (e.g., public housing agencies).
  • Subsequent Listing Period
    When a property still remains unsold after the 45 day initial listing period, the M&M Contractor will re-analyze the case as soon as possible. The price may be reduced, and for five days after the price reduction, all bids are considered simultaneous, with owner-occupants given priority. After the five-day initial reduced price bidding period, then bids are reviewed daily and the acceptable bid that offers the highest net value to HUD (regardless of occupancy) is acknowledged.
  • Contract must be submitted within 48 hours
    If your bid is acknowledged, as your broker, the Paschal Group must submit a correct HUD Sales Contract, along with other required forms and Addendum's signed by you, to the M&M Contractor Regional office within 48 hours. You may be required to submit proof of financing commitment or cash to close, along with other items. You should be working with the Paschal group to put the required items in place before you bid on a home, so that you are ready when the time comes.

Buying a HUD Home is Different than Buying Other Types of Homes


There are a few things you need to know up front about buying a HUD home, since the procedures may be different than those used in buying other types of homes. HUD however, has made the procedure as efficient and convenient as possible. Here are some things you should know:

  • Anyone can buy a HUD home
    HUD homes can be purchased by anyone. While many homes are affordable, this is not a low-income program. Home may be bought by owner-occupants (who have a priority bid period for 10 days), and by investors, who can then bid along with owner occupants.
  • HUD homes are sold at market value
    HUD homes are initially priced for sale at the appraised market value. The buyer may offer any price, but HUD will only agree to offers that provide an acceptable return. Price reductions may take place later if the home does not sell.
  • HUD homes are sold "As Is"
    It is extremely important to understand that HUD homes are sold in "as is" condition. This means that the condition of the home when you see it is what you will be buying. HUD makes no warranties, does not guarantee the condition of any home, and does not verify that it complies with any local code or zoning requirements. You must make any necessary repairs after the purchase. HUD may make, or give you an allowance for, major system or safety repairs only if you are purchasing with an FHA-insured loan. It is very important that you get a Home Inspection by a licensed professional prior to closing on the sale.
  • Deadlines must be met
    When you buy another type of home, you can usually negotiate the contract and other transaction items over an unspecified period of time. When purchasing a HUD home, this is not possible. In order to be fair to all purchasers, HUD has imposed timetables that must be met or your bid or contract will be canceled and the home returned to the market. Once your bid is acknowledged as the highest net to HUD, for example, we as your agent must send in a correct contract within 48 hours or the bid will be canceled. Generally, closing must take place within 45-60 days. 
  • Mortgage Companies 
    Before you offer a bid on any HUD home you must be prepared and have your Ducks in a row. First of all you need to find a good lender who will finance HUD's, also if the home is a fix it upper or on acreage or a mobile home your lender needs to know this too, please ask the lender several time are they sure they finance HUD's? Do you do Mobile Homes? Do you finance Acreage? We have been several weeks into the process before the lender realizes they do not finance HUD's, Mobiles or Acreage, then you are on the hook to HUD, you have signed a legal binding contract with the Federal Government, so unless you have a rich uncle who just died you need to dig up the money (no pun intended). We will also have to have a letter from your Mortgage Company stating you have been approved and your credit has been run and checked out.
  • Earnest Money
    HUD requires you to have Earnest money in the form of a Cashiers Check made out to HUD, If your bid is below $50,000 you will need a Cashiers Check for $500, if your bid is more than $50,000 you will need a check for $1,000.  If your bid is not accepted your Cashiers Check will be returned to you uncashed, this will be returned to you within 24 hours after notification of non acceptance.
  • Closing Cost 
    Once again you will have to know from your Mortgage Company how much your closing cost will be, this is called a Good Faith Estimate, we can add up to this amount to the bid to finance your closing cost but please be aware this increases your bid amount to finance if you add it on top or decreases your bid to HUD and your chances of being awarded the bid if you want to roll it into your bid.
  • We are here to help you get your home or investment please contact us today to make sure we have a plan that works for you. Roger & Linda Jean Paschal

 Don't wait give us
a call at

817-479-9211
 


HUD Earnest Money Policy


It is HUD's policy that if a buyer backs out of a contract that HUD has accepted, 100% of the earnest money is forfeited to HUD. This is why HUD must have a Cashiers Check at the time the contract is presented.

If HUD does not accept the contract your cashiers check is never cashed, and you have the right to get it back the same day as the bids are reviewed.


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