Reverse Mortgage Foreclosure Buying Guidelines. In buying a home- one which must be sold subject to CFR 206.125- there are very specific guidelines outlined for the sale of this property. I have outlined them below. (The terms that apply to you directly have asterisks (***) at the beginning of them- the rest are more focused on the seller responsibilities, but they will affect you at some point, so I included them in this response.)
· The subject property CANNOT be sold for less than the current appraised value as established by an FHA Roster Appraiser (list price), without HUD’s express authorization. Offers not submitted at list will be countered regardless of any terms, conditions or circumstances.
***· Property is sold “AS-IS AT TIME OF SALE”. In many of these properties, they will not be completely cleaned out and they will not be maintained during the escrow process. Buyer accepts condition at the time of closing.
***· There can be no repairs and no termite completed on property. This includes repairs or termite completed by the buyer. If buyer is found to have completed any repairs or termite during contract period without written authorization from seller, contract will be terminated immediately and buyer will not receive any reimbursement. If repairs will be required for buyer’s financing, do not offer as they will not be completed.
***· Per HUD guidelines, utilities will NOT be turned on at any time at sellers expense. Buyers AGENT may turn on utilities and Buyer will be responsible for any and all costs incurred turning on the utilities. Utilities can ONLY be turned on during 10 day inspection period and utilities MUST be turned off upon completion of inspections or 10 day period.
***· Seller does not provide HOA documents. Buyer will be responsible for incurring the cost of all governing documents.
· Seller does not allow buyer to pay a transaction coordinator fee, selling agent commission or any other transaction related expenses to the selling (buyer’s) agent. If fees are on the HUD, the HUD will be rejected by HUD and property cannot close escrow.
· Other costs not allowed by HUD at closing include, repair reimbursements or allowances, county and or city transfer taxes, home warranty fees, discount points or closing cost credits, wire fees, “miscellaneous” fees, courier fees.
· If a corporation/LLC/LP is purchasing the property, the Articles of Incorporation/Organization will be required as well as Specific Signing Authority.
· Mediation and Arbitration will be removed from the contract.
***· Seller requires 30 days for a cash transaction and 60 for a financed transaction. This gives time to ensure a clear title at closing. Property may be able to close sooner and extensions to this time frame may be required.
· Electronic signatures are not accepted.
***· Under no circumstances is the buyer allowed to move into the property prior to the close of escrow.
Reverse Mortgage Foreclosure Buying Guidelines.
Was provided by Art Di Segna, a recognized leader in his field. Art can be contacted via email at Art@FineHomesOfTexas.com by phone at (281) 415-5888 or Contact Me. Art has helped hundreds of people move in and around many Houston towns for the last 14+ years.
I specialize in working with buyers in the following areas: Houston, Spring, Cypress, Tomball, Magnolia, Conroe, Huntsville, Point Blank, Lake Livingston area, Onalaska, Cape Royale, Cold Spring, Blanchard, Trinity, Woodville Texas.
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