"Ask the Broker" is back with questions we’ve received from our readers.
What exactly is a HUD home?
The answer to that question is much simpler than you might expect. A HUD-owned home is a property that was originally financed with an FHA-insured loan. The Federal Housing Administration (FHA) was created in 1934 as part of the Department of Housing and Urban Development (HUD). The purpose was to improve and provide a standardized loan processing system and to help stabilize the housing market by insuring mortgage loans. When a property financed with an FHA-insured loan is foreclosed upon, ownership reverts to HUD. Once HUD takes possession of a property, it’s listed for sale by a local listing broker who is hired by a property management company contracted by HUD. In Georgia, there are currently three marketing managers contracted to market HUD homes: Pemco Ltd., Ofori REO and HomeTelos First.
Can you show and sell me property that is listed by another broker?
Yes! Any licensed real estate professional can show any listed property, and in some cases, unlisted property (with permission from the current owner) to anyone looking to purchase. In the ancient days of real estate sales and marketing (pre-internet), listings were only accessible to licensed agents. If a buyer came into a brokerage, that buyer was most likely only going to be shown listings that were marketed by that broker. Technology revolutionized the real estate industry when the Multiple List Services were opened up to the general public through internet searches. Reciprocity between brokers, which was once frowned upon by industry leaders, is now encouraged. So again, yes, as a licensed real estate professional I can show and sell any listed property you wish to see.
What is a short sale?
A short sale means that the sale of the property will not generate sufficient funds to satisfy the current lien (mortgage). I often joke that there’s nothing short about a short sale. Because of the nature of the negotiation that takes place between the buyer and seller and then the necessary approval of the seller’s lien holder(s) to accept the short pay off, short sales typically take anywhere from 90 to 180 days to complete. Most financial institutions are coming on board with the idea that short sales are better for the consumer, the current mortgagee and the banking industry. They are becoming increasingly easier to negotiate and close, and the time to do so in most cases is decreasing. Patience from a perspective buyer could pay off with a big reward, such as a lower purchase price for a larger home, and most importantly also helps a fellow neighbor out of a difficult situation. One reason I promote the short sale as a viable option in today’s market is because every property that’s sold in a short sale is one less potential foreclosure bringing down property values for everyone. Before you consider just walking away, find out if a short sale would work for you.
Send your real estate related questions to email@example.com and we’ll answer them here in our next “Ask the Broker” feature.
Have you ever wanted to meet the iDeal REP team? We’re hosting an open house on Sunday, July 15, from 11 a.m. to 1 p.m. Email us for more details. We hope to see you then.
iDeal Real Estate Professionals, LLC is owned and operated by Brandon Bramlett and C. Mark Willix and is affiliated with Maximum One Realty Greater Atlanta. For personalized service, visit us at www.idealrealestateprofessionals.com. You can also email us at firstname.lastname@example.org.