HUD announced earlier this week that it will be providing discounts on REO properties to state and local governments and non-profit organizations during the already-established “First Look” viewing period for HUD foreclosed properties . “First Look” is a program that gives these entities a grace period in which they can view the home but other parties cannot. Now, in addition to the grace period, NSP purchasers will receive a 10% discount off the appraised value of the property.
Programs like NSP have traditionally been limited to use by local governments to assist with properties suffering as a result of foreclosure or other financial strain. However, President Obama’s stimulus program expanded the eligible organizations to include disreputable “community organizing” groups like ACORN, which focuses largely on expanding the power base of extremely liberal politicians like Obama himself.
HUD hopes that this addition to the initiative will accelerate the sale of foreclosed HUD homes and support neighborhood stabilization. The First Look period lasts about 2 weeks from the time that the property is conveyed to the FHA, and once the period of time has expired the property can be viewed by and sold to anyone.
Fannie Mae launched a similar initiative in 2009, and both initiatives exclude investors until after the grace period is complete. Fannie Mae’s version focuses on owner-occupant homebuyers.
Do you think it is wise to limit who purchases properties and how they are purchased, even just for a limited period of time? Does this impact your investing strategy or outlook?
Thank you for reading! Your comments and questions are welcomed below.
My question is who is covering the cost of the 10% discount? Taxpayers right?
Just one more example of how corrupt and crooked this administration is.
In my area there are too many properties for this to make much of a difference. I also think that most picked up by ACORN and the like will end back on the market in even worse shape down the road.
They do not have a good track record with projects like this and failure is their most likely outcome over time. So I think it is going to blow up in their face and ultimately backfire on HUD, Fannie and the corrupt organizations they are attempting to boost up.
I don’t believe we can change the ridiculous way the gov’t does ‘business’ and I do believe there’s got to be some sort of equal opportunity violation here. I do think that most of the people that buy houses are too lazy to do any of the work on their house before they move in. And since most of the houses need work, the gov’t is again getting in the way and just prolonging the sale of many houses and ultimately driving investors to bid lower on a house (since it stayed on the market longer).
You didn’t think the gov’t would target the problem, now did you? While there were some bad apple investors in the build up, it was the mortgage brokers selling the wrong loans to owner occ’s and the banks selling off these mortgages and the regulators that caused the problems…and of course people thinking that they can afford more than they really could.
Seems like the wise investor should be looking into how to start one of these “not for profits” or “community companies” so they can have;
1. first look
2. 10% discount
I agree with Matt. I think that all of us investors ought to band together
and; enmasse, start up “not for profit” or “community companies”.
Wonder how they would be able to handle that. They can’t handle
anything anyway.
Didn’t you guys already kill ACORN?
No offense, but I don’t get the beef with ACORN on this. Seeking affordable housing is one of their missions. Politics aside, I’m sure there has to be a way for us investors to work with ACORN and other non-profits with similar missions to help provide low-income housing.
Well, my husband and I have been bidding on “Investor special” houses for the purpose of fixing them up and living in them for ourselves. We have worked hard to have stellar credit, not to have to ask for some crazy loan, and we have bid on about 7 different houses that all seem to go to the investors. While we have seen an NSP house, and are currently seeing if we can afford it, we aren’t encouraged. The house they fixed up has granite counter tops, tankless water heater, a complete makeover on the yard, and it comes with a stainless steel stove and dishwasher… and a washer and dryer. (needless to say, it’s not priced right for the neighborhood) Another reason why we may not be able to afford it is, they sit there and say that the first loan HAS to be as much as you qualify for according to government standards of what percentage of your income for housing should be. I don’t know about you, but we can’t afford the 30% recommended they ought to re-evaluate that number. Either way, I would love to take advantage of the NSP house there, because it would be a nice break for us going against all of you investors out there. All we wanted was a house in somewhat decent condition that we can buy and live in for ourselves, and fix it up how we want it. But, unfortunately we can’t because the investors come in with all cash offers and leaving us, who are wonderful and prime candidates to buy a house and carry a loan with no problem… with no house.
Coming from the crowd that likes to doctor up videos of ACORN interviews and Shirley Sherrod speeches, you have zero credibility pal.
Guess what smart guy, Jesus was a community organizer.
At the point in his life when Barack was out in the community serving them, Bush was dodging the Vietnam war, snorting coke and waking up in his own vomit.
Repubs will be out of power for a generation, and deservedly so…