The Real Estate Deal Issue 0413

the real deal on bank-owned, short sales and government owned property in Hampton Roads

the real estate deal

HOW TO BUY A

HUD-OWNED

HOME INSIDE

InsideWANT TO READhow to buy a hud home ... 35 steps process to renovation loans ... 5renovation loans for investors ... 7buying a freddie mac home ... 95 steps to buying a short sale ... 13find the right hud home today ... 15

WANT TO FIND REAL ESTATEchesapeake ... 10-11hampton ... 4newport news ... 6portsmouth ...12smithfield .... 8suffolk ... 11virginia beach ... 16-17williamsburg, york county ... 7-8

Contact MeShari RocksDirect 757-986-9125Twitter #yessharirockswww.sharirocks.com

www.sharirocks.com

Dear Reader:

Welcome to the real deal in real estate-The Real Estate Deal Magazine. Your easy to read guide to purchasing government owned, bank owned and short sale real estate. Over 18 years ago, I purchased my first HUD home. I recall eagerly awaiting the new listings to appear in the daily newspaper. Times have differently changed! HUD homes now come on market daily and HUD homes throughout the United States are all on one website: www.hudhomestore.com. Can I mention the choices today in scratch & dent homes- with the surge other types of government and bank owned homes that are on the market a buyer has variety. My goal as a licensed Virginia Realtor is to get you the information that you need. Each property featured in The Real Estate Deal can be clicked on for more information. (Use your cursor to scroll over or look for highlighted text) Each issue will offer useful resources that will connect you directly to financing, how to, and anything real estate. Please feel free to send me your feedback/suggestions on The Real Estate Deal to [email protected]. For a limited time, you can sign up for either a six month (owner occupant) or twelve month (investor) subscription at NO COST! That’s right- completely FREE, no obligation. (see page 18) I am looking forward to making your next real estate purchase ROCK!

Sincerely,

Shari�� Rocks

As a HUD-registered licensed Virginia and North Carolina broker we are authorized to sell, show and advertise HUD owned properties. We may not be the listing broker on any or all of the properties advertised in The Real Estate Deal. All information provided in The Real Estate Deal is deemed reliable but is not guaranteed and should be independently verified. Shari Rocks is a licensed Virginia Realtor with Native American Group Realty, a licensed Virginia and North Carolina firm located at 5224 Indian River Road, Suite 104, Virginia Beach, VA. 23462. Note that HUD owned properties come on and off the market daily. For up to date availability, please visit www.hudhomestore.com or email [email protected]. HUD properties are offered for sale to qualified purchasers without regard to the prospective purchaser’s race, color, religion, sex, disability, familial status or national origin. HUD reserves the right to reject any and all offers or to withdraw a property prior to bid opening. Accuracy of information contained in this advertisement is not guaranteed. Properties may contain zoning and code violations as well as defects which could effect the purchaser’s health or safety. It is the purchaser’s responsibility to satisfy himself as to accurate information and property condition, including any possible zoning and code violations. 2

Shari RocksVA Lic: 0225196197RealtorNative American Group Realty

http://www.sharirocks.com

http://www.sharirocks.com

http://www.hudhomestore.com


mailto:[email protected]

mailto:[email protected]

How to Buy A HUD HOMEA HUD home is nothing more than a house that was purchased with an FHA loan that has since fallen into foreclosure.

The Department of Housing & Urban Development defines HUD homes on their site www.hud.gov as “When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. Then sell it at market value as quickly as possible.”

Buying a HUD HomeAnyone can buy a HUD homeHUD homes can be purchased by anyone. While many homes are affordable, this is not a low-income program. Homes may be bought by owner-occupants (who have an initial priority bid period for 30 days), and by investors, who can then bid along with owner occupants.

HUD homes are sold at market valueHUD 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 metWhen 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 cancelled and the home returned to the market. Once your bid is acknowledged as the highest net to HUD, for example, your agent must send in a correct contract within 48 hours or the bid will be cancelled. Generally, closing occurs within 45 days.

HUD will pay some closing and sales Commission costs Generally, HUD will pay up to 3% of your broker commission cost. In addition, HUD will pay up to 3% for standard closing cost items. These items are designated by the buyer and may include discount points, loan fees, title costs, surveys, and other items. HUD will also generally pay any outstanding seller costs such as outstanding tax or utility bills which relate to HUD's ownership.

HUD homes can be found onlineThere used to be a different site for different areas of the country, but it’s been consolidated into one website: www.hudhomestore.com.

HUD ResourcesSearch all HUD homes available www.hudhomestore.comBuying a Home http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_homeRehab a Home with HUD’s 203(K) program http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/s/203k/203kabou

3

http://www.hud.gov

http://www.hud.gov

http://www.hudhomestore.com/HudHome/Index.aspx

http://www.hudhomestore.com/HudHome/Index.aspx



http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabou




ese are HUD-owned properties. To view all HUD Properties available for sale, please visit wwwhudhomestore.com. As HUD-registered agents, we can sell and show you any home you find of interest on the site. HUD-owned properties come available daily. We may not be the listing agent.

HUD properties are offered for sale to qualified purchasers without regard to prospective purchaser’s race, color, religion, sex, disability, familial status, or national origin.

OPEN TO ALL BIDS

OPEN TO ALL BIDS

541-7471153 bed 1 bathList Price: $85,000Escrows: $1100Un-repaired Value: $83,900

541-7631642 bed 2 bathList Price: $75,000


541-8114144 bed 2.5 bathList Price: $149,000Escrows: $4785Un-repaired Value: $144,215


541-8939083 bed 1 bathList Price: $124,000Uninsured




The City of Hampton

4

LOTTERY until 4/24/13

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-747115&sLanguage=ENGLISH&zipCode=&city=hampton&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1


















5 STEP Process to Renovation Loans1. Meet with your loan officer to get pre-

approved for the FHA loaney will go over a loan application and will review documentation that supports your application to determine the amount you will be approved for. ey will discuss your different loan options and determine the best loan program to fit your needs.NOTE: e purchase contract should clearly indicate the loan type to be an FHA 203(k).

2. Your purchase contract is accepted by the sellerYour Realtor will forward the accepted contract to your loan officer to set up your financing file. is is when the clock starts ticking. You will need to get with your contractor and/or your FHA consultant to finalize the estimate and scope of work in which is going to be done. Any other required or desired inspections, such as a home inspection, termite inspection, well or septic inspections, roof inspection or HVAC inspections, will be ordered at this time.

3. Choose your contractor and obtain bidsYou must research and select contractors with whom you will feel comfortable. Contractors must provide specific documentation as previously listed to be accepted for use in the renovation program. You will need to provide a complete contractor package for each contractor completing work on this project.

4. InsuranceIn most cases, a homeowners policy will suffice. On some occasions a builders policy will be required. An insurance agent can provide guidance here.

5. Once all conditions to the loan have been met, the loan will closeAt closing the seller and Realtors are paid in full. e funds for the repairs are placed in an escrow account. If mortgage payments are included in the escrow, the payments will be paid when they are due. Repairs must start within 30 days of closing and be completed within six months.

ResourcesMore information on FHA 203 (k) loan http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/203k/203kabouThe Dream Remodel Loan as featured on DIY, HGTV, TLChttps://www.prospectmortgagedirect.com/dream-remodel/ 5


OPEN TO ALL BIDS


The RED QUICK GUIDE

How to navigate your way through The RED (Real Estate Deal)

If you see this:

be on the lookout for this property to come on your local MLS. The property is available for exclusive bidding and if not sold will come available.

If you see this:

this home is open for all to bid on.

Click on the Case # (the 541#) and be linked to additional information

on the property. Click above to give it a test run!

Sample HUD Home



https://www.prospectmortgagedirect.com/dream-remodel/

https://www.prospectmortgagedirect.com/dream-remodel/

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-795857&sLanguage=ENGLISH&zipCode=&city=virginia%20beach&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1


OPEN TO ALL BIDS

OPEN TO ALL BIDS



541-8564095 bed 2 bathList Price: $25,000Uninsured


541-8554533 bed 2.5 bathList Price: $144,000As is Value: $160,000

Newport News

ese are HUD-owned properties. To view all HUD Properties available for sale, please visit wwwhudhomestore.com. As HUD-registered agents, we can sell and show you any home you find of interest on the site. We may not be the listing agent.


6



Resources for homesUSDA/Rural Development Homes

http://www.resales.usda.gov/resales/index.jsp

Fannie Mae Owned Homeswww.homepath.com

Freddie Mac Owned Homeswww.homesteps.com

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-580656&sLanguage=ENGLISH&zipCode=&city=newport%20news&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1










http://issuu.com/sharirocks/docs/147colonyrd

http://issuu.com/sharirocks/docs/147colonyrd



http://www.homepath.com


http://www.homesteps.com


Renovation Loans for Second Homes & InvestorsHomeStyle® Mortgage offers borrowers of all income levels up to 90 percent financing for the purchase and improvement of a home. Financing is based on the "as-completed" appraised value of the home, and borrowers can use up to 50 percent of that value for improvements or repairs.Fannie Mae does not specify which improvements a borrower may or may not finance. is means that the improvement funds can be used for "cosmetic" purposes such as carpeting and various kinds of remodeling. ere is no minimum amount that needs to be spent on repairs. e improvements should be performed by contractors who are licensed, registered, or certified or have the highest level of certification required.

HomeStyle® Mortgage: Key facts• This mortgage is available to owner-occupants, purchasers of second homes and investors.• Eligible properties are one- to four-unit homes, condominiums, and PUDs.• Maximum loan amount may not exceed Fannie Mae's conforming loan limits.• Maximum renovation amount is 50 percent of the as-completed value of the property.• Qualifying ratios are 28/36.• Loans are fixed-rate mortgages or rate capped ARMs, fully amortizing with terms between 15

and 30 years.• A contingency reserve equal to 10 percent of the cost of the renovation is required, and may be

financed out of the loan proceeds

ResourcesHomestyle® Renovation Mortgage Information Sheethttps://www.fanniemae.com/content/fact_sheet/homestyle-renovation-factsheet.pdfFor a Homestyle® Lender CLICK HERE

7

Greater Williamsburg

541-7595183 bed 2.5 bathList Price: $150,000UninsurableHOA $273 monthly


541-8556803 bed 1 bathList Price: $119,250Escrows: $500.00Un-repaired Value: $132,000


OPEN TO ALL BIDS

OPEN TO ALL BIDS

https://www.fanniemae.com/content/fact_sheet/homestyle-renovation-factsheet.pdf

https://www.fanniemae.com/content/fact_sheet/homestyle-renovation-factsheet.pdf

http://www.myprospectmortgage.com/pattie/

http://www.myprospectmortgage.com/pattie/

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-759518&sLanguage=ENGLISH&zipCode=&city=williamsburg&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1










541-9049273 bed 2.5 bathList Price: $195,000HOA $181 monthly



Smithfield


8



Williamsburg/York



http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-808085&sLanguage=ENGLISH&zipCode=&city=smithfield&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-808085&sLanguage=ENGLISH&zipCode=&city=smithfield&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1

http://issuu.com/sharirocks/docs/14055melissadr

http://issuu.com/sharirocks/docs/14055melissadr

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-711110&sLanguage=ENGLISH&zipCode=&city=&county=isle%20of%20wight&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-711110&sLanguage=ENGLISH&zipCode=&city=&county=isle%20of%20wight&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-802178&sLanguage=ENGLISH&zipCode=&city=york&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1




9

541-775301 226 Woodbury ForrestHampton, VA, 23666Hampton City County

net $135,031 INV 03/26/2013 03/27/2013 03/28/2013 EXP REALTY LLC

541-860128 320 Rudisill RdHampton, VA, 23669Hampton City County

net $120,015 INV 04/11/2013 04/12/2013 04/12/2013 ALLEGIANCE REALTY PARTNERS LLC

541-866165 1923 Long Green LnHampton, VA, 23663Hampton City County

net $48,410 O/O 04/05/2013 04/12/2013 04/12/2013 PENINSULA REALTY GROUP INC

541-867841 702 Rutherford StHampton, VA, 23661Hampton City County

net $54,050 INV 03/04/2013 03/05/2013 03/05/2013 ALLEGIANCE REALTY PARTNERS LLC

List Price: $221,000

List Price: $168,000

List Price: $50,000

Original Price: $90,000

Accepted HUD bids are displayed for 14 days after the property has gone under contract. After the 14 day period, bid acceptance information for

the property will no longer be displayed.

Click HERE to Access NOW

Check Out These Bid Results From the city of Hampton

https://www.hudhomestore.com/Listing/BidResults.aspx?zipCode=&city=&county=&street=&sState=VA

https://www.hudhomestore.com/Listing/BidResults.aspx?zipCode=&city=&county=&street=&sState=VA



Chesapeake

OPEN TO ALL BIDS




541-7541122 bed 2.5 bathList Price: $152,000

541-7781194 bed 2.5 bathList Price: $189,900UninsuredAs-Is Value: $211,000

541-8275984 bed 2.5 bathList Price: $103.840Escrows: $1045Un-repaired Value: $116,955


541-8536083 bed 1.5 bathList Price: $80,000Escrows $3163Un-repaired Value: $76,837

541-8565643 bed 2.5 bathList Price: $184,500Escrows: $2118.00Un-repaired Value: $202,882

10

OPEN TO ALL BIDS

OPEN TO ALL BIDS

OPEN TO ALL BIDS

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-659984&sLanguage=ENGLISH&zipCode=&city=Chesapeake&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1




























Portsmouth

OPEN TO ALL BIDSOPEN TO ALL BIDS

12


OPEN TO ALL BIDS

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-631644&sLanguage=ENGLISH&zipCode=&city=portsmouth&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1


















OPEN TO ALL BIDS

Suffolk


541-8327305 bed 2.5 bathList Price: $230,000Escrows: $1100.00Un-repaired Value: $228,900HOA $40 monthly

11

No Two Homes Are

Created Equal...

HUD Homes www.hudhomestore.com

USDA/Rural Development Homes


Fannie Mae Owned Homeswww.homepath.com

Freddie Mac Owned Homeswww.homesteps.com

INVESTORS!!!!!I know what you are looking for

GIVE ME A CALL757-986-9125

Can’t Wait and Want Daily HUD Updates.

Email Me Subject Line: SEND ME

DAILY HUD HOMES

[email protected]



Portsmouth

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-802448&sLanguage=ENGLISH&zipCode=&city=Suffolk&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1














mailto:[email protected]?subject=SEND%20ME%20DAILY%20HUD%20HOMES






5 Steps to Buying a Short Sale:

Identify potential short salesLocate pre-foreclosures in your area. You can use an online database, search courthouse listings and legal ads or use an experienced real-estate agent as a buyer's agent. First, try to determine how much is owed on the house in relation to its approximate value. If it seems high, it's a good candidate because it indicates the seller might have trouble selling it for enough to satisfy the loan. Pass on those in which the owner has a lot of equity in the home — the lender likely will prefer to foreclose and resell closer to the market price.

View the propertyGauge its condition and estimate of how much it's going to take to repair or renovate. If it needs work, many "normal" buyers won't consider it, which is good for you.

Do your researchWhat is the property worth? What's the profit potential? If you're an investor or even a homeowner planning to live in the home a short time, you'll want to profit from the deal.

Find all liens and mortgagesAsk the seller or his/her agent what liens are on the property, and which lender is the primary lien holder.

Figure out the financingThis is critical. You have to know how you're going to pay for the property. If you're a good credit risk, the existing lender may be willing to give you a loan. Since it already has a lot of the information in the short-sale paperwork, it may be able to expedite the loan application process. It's important to understand that in a short sale, you have to be able to move quickly. Once an agreement is worked out, it is common for the lender to require closing in as few as 20 days. This is too late to start shopping for a mortgage. Have your financing worked out up front.

1

34

5

2

13

ResourcesA Buyer’s Guide to Short Saleshttp://issuu.com/sharirocks/docs/shortsaleguide

http://issuu.com/sharirocks/docs/shortsaleguide

http://issuu.com/sharirocks/docs/shortsaleguide











NorfolkOPEN TO ALL BIDS

14

OPEN TO ALL BIDS

http://www.hudhomestore.com/Listing/PropertyDetails.aspx?caseNumber=541-775949&sLanguage=ENGLISH&zipCode=&city=norfolk&county=&sState=VA&fromPrice=0&toPrice=0&fCaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10&pageId=1
















Follow These 4 Tips:Tip # 1 Find the right real estate agent. Only real estate agents who are registered with HUD may represent home buyers and investors in the purchase of HUD homes online. But just because an agent is registered with HUD doesn’t mean he or she is going to be the best agent to represent you in the purchase of a HUD home. To find the right agent, you can search through the website that lists HUD homes in your area and find out which agents represented the most winning bids. Interview the top two or three agents. Be sure to ask how long the agent has represented buyers and investors, how the process typically works, whether the agent will accompany you to inspect the property, and what special knowledge the agent has garnered from writing so many winning bids.

Tip # 2 Do your homework before making an offer. The local listing broker (who should be listed on the HUD home website) can gain access to the property and show it to you. However, you don’t need to call the listing broker to see the house with your agent. Any licensed agent can gain access to a

HUD home. When you’re inspecting the property, take a lot of notes and photos of the property so you can be mindful of any improvements that need to be made when constructing your offer. HUD homes are sold as is. It’s important for you to understand they will not make repairs. Understanding the property condition codes: IN, IE, and UI will help you gauge the needs of the property.

Tip # 3 Make an offer. The offer process on a HUD home is probably different from what you’re used to. Offers can be cancelled with no earnest money forfeiture. Once an offer is submitted, it can be cancelled before the HUD agent opens the bid electronically. Once the offer is accepted, your agent must follow the steps to ensure your contract doesn’t get cancelled. Working with an experienced HUD registered agent is key.

Tip # 4 Be ready to close on your HUD home. HUD contracts are normally 30-45 days. Make sure you have your financing in order prior to submitting your offer.

& Find a HUD 2 Buy?

15

ResourcesWorking with a skilled HUD registered Realtor is a mustConnect with ME todayText/Voice 757.986.9125Email [email protected]

How Can U Navigate












Virginia Beach


16


OPEN TO ALL BIDS

OPEN TO ALL BIDS



















17

RENTERS!!!!!Rates are low! Prices are low! Why are you renting???

GIVE ME A CALL757-986-9125

BUYERSWANTED

A NEW HOME IN YOUR FUTURE....

THEN SO IS A HOUSEWARMING PARTY ON ME

ASK ME HOW

Call Me TODAY 757-986-9125

SHARI ROCKS

To Subscribe to The Real Estate Deal for FREE

EMAIL [email protected]

Do�� you�� know�� someone�� that�� is�� currently�� looking�� to�� purchase�� a�� home?�� Please�� share�� The�� Real�� Estate�� Deal�� with�� your�� friends�� or�� family�� members�� via�� Facebook,�� Twitter,�� or�� email��

and�� help�� them�� on�� their�� way�� to�� affordable�� homeownership.

mailto:[email protected]?subject=SUBSCRIBE%20ME

mailto:[email protected]?subject=SUBSCRIBE%20ME

The Real Estate Deal Issue 0413

Documents

Transcript of The Real Estate Deal Issue 0413