According to statistics, 25% of all real estate hud contract transactions submitted in Fairbanks Alaska get canceled due to licensed agents crudely filling out the contract or missing a deadline for an extension.
Why is this? How are you going to disclose to your prospect that they didn’t get their ideal residence because ‘you, as their agent, didn’t know the process?
Throughout the US, hud processes aren’t covered by any real estate academy currently offered. Here is some of what you need to know. Most licensed Fairbanks real estate agents don’t perceive that the hud bidding and contract procedure is completely different from your standard real estate transaction. Often newly licensed brokers email their state forms when submitting a offer when, in fact, all the bidding is done online. The contracts 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 mandated by hud to be submitted.
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 employed incompetent, unprepared Robo-Sign’ers to speed along foreclosures through the organization. Trends show law suits are developing for these deals with lawyers jumping on the bandwagon to represent the former homeowner that was foreclosed upon and those lawyers 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. We are in uncharted territory and for years to come no bank selling an reo will be able to see to it that their REO has a clear and marketable title. Be weary of touching an REO as you may find yourself in legal procedures for years to come.
* Housing and Urban Development assures a clean and marketable title. How? Because all insured lenders have been paid, FHA reclaimed the property and assigned the Housing & Urban Development 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 Housing and Urban Development is insuring the interest of the federal government. Need we say more?
A plethora of properties on the Fairbanks real estate market are HUD homes. In 2011 it’s never been a better time than now for agents to effectively execute and understand all HUD procedures.
