Is this the cutest couple ever!?! I'm bias because this is my nephew, Jon, and his super cute, mega intelligent and legally blonde (I told you I was bias!) wife, Suzy. They were blessed to have funds available to purchase a home for cash at the beginning of their life together. They couldn't have timed it better. We started looking at homes in the beginning of October, 2011. They had a limited budget and were willing to invest some sweat equity into a home they could call their own. I had them focus their search on http://www.hudhomestore.com/ for a home in Mesa, Arizona. This website only features HUD owned foreclosures available to anyone for purchase. The first 15 days on market HUD takes owner occupant bids only. Don't get that confused with first time homebuyers. HUD only requires that the bidders actually live in the home upon close of escrow regardless of how many homes they have owned in the past. After 15 days on market, if the home has not sold to an owner occupant, the bidding is open to 2nd home and investment buyers.
Look at this great HUD home Jon and Suzy were able to purchase in Mesa, AZ! 
HUD homes are greatly misunderstood. They have a bad reputation as being the bottom of the barrel properties but that is simply not true. The U.S. Department of Housing and Urban Development underwrites FHA mortgages. When a person who has a FHA mortgage loan stops making the payments and the home is foreclosed upon, it is returned to the financier who is HUD. Then HUD liquidates the asset at the current appraised value. Yes! HUD has a full-blown appraisal of it's properties before they are ever listed on the market. They are listed at the appraised value. And that's not all! They also have a home inspection done of the property. They post the results of the home inspection on their website for potential buyers to view. Everything is disclosed up front. There's no guessing game. It is. . . what it is. . . and that's "as-is"!
HUD homes are greatly misunderstood. They have a bad reputation as being the bottom of the barrel properties but that is simply not true. The U.S. Department of Housing and Urban Development underwrites FHA mortgages. When a person who has a FHA mortgage loan stops making the payments and the home is foreclosed upon, it is returned to the financier who is HUD. Then HUD liquidates the asset at the current appraised value. Yes! HUD has a full-blown appraisal of it's properties before they are ever listed on the market. They are listed at the appraised value. And that's not all! They also have a home inspection done of the property. They post the results of the home inspection on their website for potential buyers to view. Everything is disclosed up front. There's no guessing game. It is. . . what it is. . . and that's "as-is"!
HUD homes are as diverse in condition as any other foreclosed property. We looked at several HUD homes during the house hunting process. Using the list price as the appraised value to gauge their bids, Jon and Suzy started out bidding below list price. That approach wasn't working even though they would have had great bragging rights for getting a home for under appraised value. They were getting out bid by $20,000. As the reality of the situation set in, and Suzy was counting the days toward the end of the semester and the beginning of the next, they got more serious about placing a competitive bid. By the end of November, home prices were beginning to rise due to the lack of low-priced home inventory in the Phoenix metro area. They took my advise and bid over list price.
We made a strategic bid for $3,363 over list price on a single level house in east Mesa, built in 1999 by Dietz Crane Homes. We wanted to outbid the competition by the smallest possible margin. Even one dollar over the next bidder will get the property. No one knows the amount of the other bids. It's all done electronically, with one bid per buyer and no call for highest and best. Not even the listing agent knows the winning bid until it is awarded by HUD.
It was sweet success for Jon and Suzy! They were the highest bidders at $76,363. Their first home has 3 bedrooms, two full bathrooms, 1309 sq.ft., fully equipped kitchen with an extended covered patio and clean concrete surfaces surrounding the house. The repair work was minimal. They did some minor stucco patching on the exterior and had the carpets cleaned.
These two do have something to brag about now! It has been 6 months since Jon and Suzy have closed on their house and already the value of the property has increased by $10,000 over what they paid. Perfect timing and smart decisions paid off! Congratulations!!!
I have to add one last picture of the pink bedroom. Suzy liked this room, especially the colorful ceiling fan. She wouldn't change a thing! Very legally pink!
I wish Jon and Suzy years of love and enjoyment in their new home.
I value the privilege of home ownership and am committed to treat all my clients with the same care as I do my own family. Your best interest is my priority.
Barb Merrill Works 4 U!
