According to statistics, 25% of all HUD deals submitted get canceled due to real estate agents incorrectly filling out the contract or failing to file for an extension. Why is this? How are you going to justify to your customer that they did not get their dream home because you, as their licensed real estate agent or broker, didn't know the process? In this down market getting started as a real estate agent has never been more difficult.
Throughout the US, HUD contract processes aren't covered by any real estate academy currently offered. Here is some of what you need to know. Most licensed real estate agents do not understand that the bidding and contract process is completely different from your standard real estate deal. Frequently we have had agents email their state documents when submitting a proposal when, in fact, all the bidding is done on the internet. These deals 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 dictated by HUD to be provided.
Why are HUD repo sales are the new gold standard for opportunities? Statistic: About 9.1% of FHA borrowers had ignored at least 3 payments as of December 2009, up from 6.5% in 2008, the agency's figures account for. The FHA does not make loans but insures lenders against losses. And, claims have already elevated. The agency had to pay out on 47% more loans in October and November 2009 than in the corresponding period a year preceding, according to an FHA probe. The year 2010 will be even higher according to some analytics.
Why are Housing And Urban Development transactions the new Gold Standard for realtors? 2 reasons:
• The banks engaged unfit, untrained Robo-Sign'ers to speed up foreclosures through the system. Trends show lawsuits are developing for these deals with attorneys 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 institutions, the title company, the lender, escrow and even the new current owner and their agent. Why does this matter? Because we are in uncharted air space and for years to come no bank selling an reo will be able to ensure that their property has a clear and marketable title. Be cautious of dealing with 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?
If you want to know more about getting started as a real estate agent feel free to visit our site for real estate academy tutorials. You can also find some of the best books on real estate by visiting our site Getting Started As A Real Estate Agent where you'll find product reviews about realtor apps (android apps for realtors and realtor apps for iphone), real estate marketing letters, QR code for realtors and helpful resources to get your real estate career started.Good luck and always email if you have further questions.
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