Las Vegas HUD Homes
Las Vegas HUD Homes
With foreclosures in Las Vegas still at record highs, HUD Homes in Las Vegas are becoming a very popular alternative to the typical foreclosure. A lot of buyers are not even sure what Las Vegas HUD homes are. Las Vegas Hud homes are properties that were originally financed with an FHA loan. For some reason or another, the homeowner then lost the home to the lender through the foreclosure process and this is how we have HUD Homes in Las Vegas.
In 2006, 100% financing programs became non existent and thus FHA was the next least expensive way to get into a home. Up until 2009, FHA loans only required a 3% down payment. FHA loans now require a minimum of a 3.5% downpayment, although you can always put down more if you wish. An FHA loan is a regular home loan through a lender such as Wells Fargo, Bank of America, Chase or anyone else who does home loans. The only difference is the loan is federally insured through the goverment. Bottom line, if the buyer defaults on a Las Vegas HUD home, the lender will get their money for the original loan from the goverment. Once the lender forecloses on the property, they collect their money and turn it over to HUD. HUD homes in Las Vegas are still basically a foreclosed property but just through the U.S. Department of Housing and Urban Development.
Benefits to purchasing HUD Homes in Las Vegas
Anyone who has recently turned on the news has probably heard that more than half of Las Vegas Homes that sold last month were all cash sales. This has made buying a home in Las Vegas for financed buyers a very frustrating process because we all know cash is always king. This is what makes a HUD homes in Las Vegas so appealing. Cash or financed, it does not matter! Las Vegas HUD homes will only look at the bottom line, so the higher net will get HUD homes in Las Vegas. They do not accept a lower cash offer because it can close quickly over a higher financed offer that will take 30 to 45 days to close and could possibly fall apart because the buyer for some reason doesn’t qualify later. One in three financed deals fall apart for one reason or another. The buyer could get laid off, split with a spouse, could buy a car in the process and change their debt ratios, maybe a lien or judgement comes up. Believe me, I’ve seen them all. That is why a cash offer is so much more desirable over a financed offer.
Another benefit to a Las Vegas HUD Home is they only allow owner occupied buyers for the first 30 days in most cases. If the property is in disrepair and would not be in a condition for a loan, then they typically allow investor buyers right off the bat. People have a perception that HUD Homes in Las Vegas are in need of a lot of work. To the contrary, most Las Vegas HUD homes are in nice condition and ready to move into. Just click the icons on the map below to view video tours of select Las Vegas HUD Homes.
View HUD Home Map in a larger mapWhen Las Vegas HUD homes are first listed, HUD has completed one or two appraisals on the property. They list the home at the lower appraisal. Right from the get go, the home is priced correctly. There will not be an issue with a home being overpriced or underpriced. Compared to a Las Vegas Short Sale, the lender that approves the short sale may be months behind on the current market value or unrealistic about the property value. When the buyer orders their appraisal, the value could come in much lower than the approved short sale amount. This creates an entire new set of problems. This is not the case with HUD homes in Las Vegas.
Once a buyer finds a home they want to submit an offer on, it is all done online. A Las Vegas Real Estate agent is required to submit the offer. We submit your offer amount, your required closings costs (if any are needed), your financing type and personal information in order to submit offers on HUD homes in Las Vegas. We have to have the offer submitted by midnite central standard time of the first bid date. The best part, we will have an answer typically the next business day. No waiting a week from the standard bank just waiting to see what else comes in. If you submit a low ball offer, just expect a rejected offer. As explained above, the property is listed correctly and HUD needs to get that amount, close to it or they will wait for another offer.
Timing is also important. If two offers came in with identical net proceeds, then they take the offer that was submitted first. So if you find Las Vegas HUD homes that you want, move on it!
Once we get an accepted offer on a HUD home in Las Vegas, we have 48 hours to send in complete, original signed HUD contract along with the cashiers check for earnest money deposit. For HUD homes in Las Vegas under 50,000 the required EMD is 500.00 and HUD homes in Las Vegas are priced over 50,000 the required EMD is 1,000. The EMD never needs to be more than the 1,000. HUD is very particular that the signatures are fresh, with blue ink. No photocopies can be used. They also require that the paperwork is filled out completely and correctly. We are experienced Las Vegas HUD home agents so we will make sure we have the forms filled out correctly for all of your Las Vegas HUD Homes we submit offers on.
Once HUD receives the signed paperwork for the Las Vegas HUD Homes and check that we have completed everything correctly, they forward the EMD and completed offer to the Title company to open escrow. We will then need to have the utilities turned on the buyers name for a three day period to complete your inspections. Once you have completed your inspections, the utilities will then need to be disconnected.
A quick close is not possible on HUD homes in Las Vegas even if you are cash. You will need to remember we are dealing with government entities and they move at their own speed. This is not an issue with anyone getting loan because a loan in todays market needs 45 to 60 days to close anyhow. If you are a cash buyer, you will still have at least a 30 day close, so don’t say I didn’t warn you!
As an experienced Las Vegas Realtor, Jeff and Lee Ann Mix are well versed Las Vegas Real Estate agents selling HUD homes in Las Vegas. Please contact us to see any of the Las Vegas HUD Homes or visit the HUD site at www.HUD HomeStore.com or start your Las Vegas Homes search right here on our site. Also visit our Las Vegas HUD Homes blog