The Reason HUD Sales Are The New Gold Standard In Real Estate
According to statistics, 25% of all HUD offers submitted get canceled due to real estate agents crudely filling out the contract or missing a deadline for an extension. Why is this? How are you going to answer to your prospect that they did not get their ideal residence because you, as their licensed real estate agent, didn't know the procedures?
Throughout the US, HUD contract processes aren't covered by any real estate academy currently offered. Here is some of what you need to know. Most licensed real estate agents do not understand that the bidding and contract process is completely different from your standard real estate deal. Frequently we have had agents email their state documents when submitting a proposal when, in fact, all the bidding is done on the internet. These deals aren't difficult. They just require a little extra attention to detail and you must be well versed in how to not only fill them out but also be aware when certain deadlines are and what forms are dictated by HUD to be provided.
Why hud repo sales are the new gold standard for opportunities. Statistic: About 9.1 percent of FHA borrowers had disregarded at least three payments as of December 2009, up from 6.5% in 2008, the agency's figures signify. The Federal Housing Administration does not make loans but insures lenders against losses. And claims have already spiked. The agency had to pay out on 47% more loans in October and November 2009 than in the corresponding period a year before, according to an FHA review. The year 2010 will be elevated according to some projections.
Why are Housing And Urban Development transactions the new Gold Standard for realtors? 2 reasons:
* The banks engaged incompetent, untrained Robo-Sign'ers to advance foreclosures through the system. Trends show law suits are developing for these with lawyers jumping on the bandwagon to represent the former homeowner that was foreclosed upon and those attorneys are asking "Who really owned the note?" Former owners are suing the establishments, the title company, the lender, escrow and even the new current owner and their agent. Why does this matter? Because we are in uncharted waters and for years to come no bank selling an reo will be able to ensure that their property has a clear and marketable title. Be hesitant of touching an reo as you may find yourself in legal procedures for years to come.
* HUD assures a clean and marketable title. How? Because all Federal Housing Administration insured lenders have been paid, Federal Housing Administration repossessed the property and assigned hud to re-list the property. And, simply, because they are the federal government and, you have to ask to sue the federal government. The title company contracted by hud is insuring the interest of the federal government. Need we say more?
More and more of the properties on the market are HUD homes. It's never been more urgent than now for agents to effectively execute and understand all HUD procedures.
Want to find out more about getting started as a real estate agent, then visit Len Dietrich's site on how to choose the best real estate academy tutorials for your needs.