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HUD Homes are almost perfect for Investors
Colorado Springs HUD homes and investors
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In my opinion, some of the best properties currently available for sale for Colorado Springs Real Estate Investors, are Colorado Springs HUD Homes. They are listed two different places, both in the Local MLS and in the HUD web site, www.hudhomestore.com. There are many reasons to buy HUD properties, including that they require low down payments.
Earnest Money Policy
BUT, it’s very important for real estate investors to know that once your bid gets accepted and you don’t close on the property, there is a very good chance you are going to loose your Earnest Money. On most home purchases, investors as well as homeowners, assume they can inspect a property and if the property has additional inspection items that the buyer didn’t except, they can cancel the contract and get their Earnest Money back. Not so, on HUD properties. According to the Forfeiture and Extension Policy for Investors, unless you have a special circumstance, you will forfeit your Earnest Money. Special circumstances includes death, loss of a job, serious illness. Essentially the policy says nothing about inspections.
The form also goes onto say that if acceptable documentation is not provided, or provided in a timely manner, 100% of your Earnest Money will be forfeited.
To find out more information about Colorado Springs Foreclosures and Colorado Springs HUD Homes, Call ……
Kathy (719-287-1049) KTorline@msn.com
6 tips to get your offer accepted on a Colorado Springs bank owned home
Tips to get your offer accepted
Search for Bank-owned homes in Colorado Springs
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- 7 things to know about Bank addendums and Foreclosed Homes
It hardly seems like you can pick up a newspaper anymore without hearing about the great deals there are on bank owned homes, including Colorado Springs bank owned homes. 
Yes, there are some good deals, but there is also a lot of competition in getting these great deals; as everyone else reads and see the same articles about the “deals” . I recently attended an informative class taught by Tom Lazzaro, a top REO Agent in Colorado Springs with SellState Alliance Realty; and here’s some of his tips as well as some of my top tips on getting your offer accepted
- Check the days market that the home has been bank-owned. The longer the home has been on the market, the more the bank may be willing to accept a lower offer. Banks normally have built in formulas on when they will lower the price on a home. If the house just got listed, chances are the bank is going to hold firm on the price.
- Offer Price: The bank is not going to accept 50 cents on the dollar. Even if the home is priced wrong; the bank thinks that it is priced correctly. Be ready to put in a realistic offer.
- Earnest Money: Sometime offering more Earnest Money can give your offer a better chance of being accepted, especially when there are multiple bids. Also, it’s important to know that more and more banks are asking for certified checks for Earnest Money.
- Closing Date: Quick closing dates are also appealing to the bank. If you need to wait 90 days to close, it will make it harder to get your offer accepted.
- Realtor: Work with a Colorado Springs Realtor who understands bank-owned properties and how to get offers accepted
- Contingencies: Banks won’t accept an offer contingent on the sale of another house.
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Kathy (719-287-1049) KTorline@msn.com
7 things to know about Bank addendums and Foreclosed Homes
Want to buy a Foreclosed Home for Sale in Colorado Springs?
Get ready to sign the bank addendum
Search for Foreclosed homes in Colorado Springs
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- 8 biggest mistakes made by Colorado Springs home buyers
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Bank addendum’s can be scary documents for buyers to sign; as they are completely in favor of the bank, who is the seller. Colorado Real Estate Contracts are considered very “buyer
friendly”, but addendum’s for bank-owned properties gives up many of the rights the buyer usually has when buying a home
1. “As-Is”: The addendum will state (usually several times in several places, that the Buyer accepts the Property in “AS IS” condition at the time of closing, including any hidden defects known or unknown. It will remind the Buyer that it is the right and responsibility of the Buyer to inspect the Property and the Purchaser must satisfy himself/herself as to the condition of the Property.
2. Inspections: Regardless of the dates written in the Colorado Real Estate Contract, the addendum will set out the terms and deadlines of the inspection. It also will say something about the Buyer acknowledges and agrees that he/she is not relying on any statements or representations made by the Seller or Seller’s agents (including but not limited to information disclosed in the MLS) as to the condition of the Property and/or to any improvements.
So regardless of the verbiage and statements in the MLS, it’s up to the Buyer and the Buyer’s Agent to do their due diligence.
3. Earnest Money. More and more banks are asking for 10% Earnest Money in the form of a certified Check. The addendum will normally state the terms of keeping the Earnest Money. It may say something like ……….. In the event Buyer defaults in the performance of this Contract, it is expressly agreed that the entire earnest money deposit shall be paid to Seller as liquidated damages for, among other things, the additional cost of carrying the Property and lost marketing time which the parties acknowledge and agree are difficult to calculate.
4. Locks and Utilities: The addendum will often times explain who is responsible for changing the locks before or after closing; as well as information that the buyer needs to get the utilities changed to the Buyer’s name after closing.
5. Assignment of the contract: Some addendum’s will allow the contract to be assigned and some won’t. It’s important to understand the options.
6. Risk of Loss: If the property becomes damaged before closing, the addendum will typically explain what the seller will or will not fix and the buyer’s options to accept the damaged property in “as-is” condition.
7. Survey: The addendum will typically explain that if the title company requires a survey, it’s the Buyer’s Cost to get the survey.
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Kathy (719-287-1049) KTorline@msn.com
Real Estate Dictionary — “E” is for Earnest Money
Knowledge is Power
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Why do I need to put down Earnest Money when I’m making an offer on a house? In Colorado, Earnest Money is partially 
used to show your intention to purchase the property; it is consideration for the contract. You don’t have to put down Earnest Money, as you can also sign some type of promissory note, or you can use an Alternative Earnest Money Deadline.
The house that I want to buy in Old Colorado City has a utility easement on the Read the rest of this entry »
