| HUD homes sales are very popular in the Miami real | | | | price. The first acceptable HUD bid is accepted in a |
| estate market. Investors are always looking for | | | | daily manner. HUD will reject all offers that do not |
| bargain prices when purchasing real estate. HUD | | | | meet their guidelines and is considered too low. |
| homes Daily All Bidders list is the best way of buying | | | | HUD will not disclose the percentage they will take as |
| HUD homes for investors. HUD is offering a lot of | | | | the lowest bid. This percentage could be from 13% to |
| incentives in order to sell their Miami real estate | | | | 50% or less depending how long the property remains |
| inventory. The $100 down payment for | | | | in the Miami real estate market. All Miami HUD homes |
| owner-occupants is a very attractive FHA loan | | | | used to sell on the initial offer period and for a lot more |
| incentive. The FHA 203k program is a good way to | | | | money than the starting bid. It was not uncommon for |
| obtain money for repairs. The 203k program allows | | | | a property to sell for 50% over the list price with |
| the buyer to combine the cost of repairs and the | | | | multiples bids offered for the same property. All of this |
| mortgage. HUD is also giving sales allowances that | | | | has changed dramatically. Now most of the HUD |
| allow the buyer to pay down the mortgage, pay | | | | properties do not sell in the initial period. Most of the |
| closing costs, or make repairs. These incentives do not | | | | Miami real estate inventory is sold in the Daily bids at |
| apply to investors. | | | | discounted prices. The net to HUD is usually is now |
| Daily All Bidders - Investors are not allowed to | | | | much lower than the original price. |
| purchase a HUD home in the initial bidding period. The | | | | Many investors study the bid results page so that they |
| investor must wait for the property to go into the Daily | | | | can determine the lowest percentage HUD will accept. |
| All Bidder status. When a Miami HUD home does not | | | | The results also shows the selling office, date of sale, |
| sell in the initial offer period it goes into a Daily bid list. | | | | the offer accepted and the net to HUD. All HUD |
| This is when the investors come in and pick up the | | | | homes are sold in as is condition. An investor must |
| property at a discount. Investors try different bids | | | | make a bid through a registered real estate agent. |
| usually starting low and moving up until their bid is | | | | There are now more HUD homes available for sale in |
| accepted. The Daily bid is an excellent way for the | | | | the Daily bid list. The numbers of HUD homes will |
| investors and end users to buy a HUD home in the | | | | increase greatly due to the high number of FHA loans |
| Miami real estate market without having to compete in | | | | being originated. Investors must consider the Daily All |
| the regular bid process. Investors do not want to get | | | | Bidders when purchasing a HUD home in the Miami |
| caught up in a bidding war which can raise the sales | | | | real estate area. |