I have had a HUD home under contract for 45 days now. I also have another contract with a CASH buyer, but his bank only will release funds at closing.I had to get two extensions because I had found out that HUD has too many rules and restrictions.
We were suppose to close this Friday but we will not be able to close and most likely I will need to cancel the deal.
The rules with HUD is that you have to have the funds WIRED a day before closing. In this case my buyer can't do this because his bank will not release the funds prior to closing. Now, I was going to get costal fundng to help me here, but with their fee's of $4000, I will not make money on this deal because I have the house under contract with HUD for $28,000 and I have a contract with my cash buyer for $30K. In this case I would lose money because I would end up owing costal funding money.
This was a learning experience with HUD obviously. If I knew someone that could wire the $28,000 and they get back the $28K hen this could work and I would get my $2K from the cash buyer.
So, I am sharing this HUD home experience with you all to make sure that your buyer has CASH and that he/she does not need to depend on a bank to release funds if you plan on doing HUD deals. Also keep in mind that if your buyer is financing the deal HUD will not allow it because ou must have the titel for 90 days. You must have a CASH buyer.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote