topic Re: HUD Foreclosure in Mortgage Loans

HUD Foreclosure

FuturePlan2 — Thu, 07 Nov 2013 22:04:59 GMT

Hi guys! I have been preapproved for a USDA RD loan but I have found a HUD foreclosure (townhome with HOA) that is below my budget listed at $133k. The address is in a RD eligible area. Would I be able to use my RD info or would I need to have my credit pulled again for FHA approval in order to purchase? I am aware of the $100 down payment if you are seeking a FHA mortgage but wasn't sure if a FHA mortgage was required.

Re: HUD Foreclosure

RJA — Fri, 08 Nov 2013 18:00:46 GMT

@FuturePlan2 wrote:
Hi guys! I have been preapproved for a USDA RD loan but I have found a HUD foreclosure (townhome with HOA) that is below my budget listed at $133k. The address is in a RD eligible area. Would I be able to use my RD info or would I need to have my credit pulled again for FHA approval in order to purchase? I am aware of the $100 down payment if you are seeking a FHA mortgage but wasn't sure if a FHA mortgage was required.

I believe that as long as the property is in an USDA designated area you can use it on any type of home (HUD, Homepath, etc.). I would only go FHA as a last option over the USDA. You won't be stuck paying MI for the life of the loan.

Re: HUD Foreclosure

FuturePlan2 — Thu, 21 Nov 2013 16:22:13 GMT

Thanks! I decided to pass on that place. The previous owner owes 2 + years of back taxes and I think I would be responsible for those in addition to the HOA and monthly payment.

Re: HUD Foreclosure

DallasLoanGuy — Sun, 24 Nov 2013 20:50:51 GMT

@FuturePlan2 wrote:
Thanks! I decided to pass on that place. The previous owner owes 2 + years of back taxes and I think I would be responsible for those in addition to the HOA and monthly payment.

nope.... you wouldn't be responsible for either

Re: HUD Foreclosure

FuturePlan2 — Mon, 25 Nov 2013 18:01:20 GMT

I was told by my lender I would be responsible for the back taxes since it was a foreclosed unit. Someone has a contract on it now so I've missed out if this wasn't the case