HUD Guidelines 24 CFR 206.125 Buyers Guide

HUD Guidelines 24 CFR 206.125

Did you recently come across a listing that states it is a HUD home that has restrictive guidelines referenced as: HUD Guidelines 24 CFR 206.125?
These HUD homes are Fannie Mae Reverse Mortgage foreclosures that are resulting as a default on a Reverse Mortgage.  The seller has many rules to maintain a reverse mortgage, and at some point, they defaulted on the loan.  Even though the borrower does not have payments, the HOA, property taxes, and other fees have to be maintained.  The borrower also has to maintain the property as their primary residence.
Either way, the property will go through the foreclosure process, and eventually be listed with a local Realtor.
Buyers and Realtors representing their buyers need to understand that these properties will NOT be sold for less than asking price.  The seller does an appraisal prior to listing, and they will not accept offers for less than the listed price.  The seller will NOT allow you to add money to the purchase price so you can have buyer credits towards closing costs.  Also, the seller will NOT allow closing cost credits to the buyer at asking price.
Once you do have an accepted offer...
This is where it gets fun for a buyer.  As a buyer, especially in the state of CA, you need to do your inspections, and all of your due diligence.  Often, the buyer will be financing, and if they are, FHA, VA lenders, and some convention loans products, will require a home inspection.  (*Note: Homepath financing is NOT allowed)  As a foreclosure, the listing agent and seller will NOT help with these, and they will NOT have utilities on at the property.  So the buyer, or the buyers agent will have to turn on utilities to do their inspections.  In addition, some water districts will require a signed service card for the water to be turned on, and you have to show proof of ownership, or a lease agreement.  And if you are using a lease agreement, you will need the owner to fill out information with the water district so they have someone to go after if the bill is not paid by the tenant.
Once you have over come these hurdles, and you realize you need repairs to be done to satisfy the lender, you will be responsible for those said repairs.  The seller will NOT make repairs to the property.  And in some cases, it stipulates in the purchase contract that the buyer can not make repairs to the property until after the close of escrow.  These properties are sold AS IS, and no repairs will be made by the seller.
Pertaining to escrow fees, the seller will only cover past due taxes, HOA dues (if needed) and provide a clear title.  They will not pay transfer tax fees, or state fees, or HOA transfer fees (if needed).
HUD properties can be a great find, and often worth the money.  Usually a little bit of sweat equity in the property can turn it into a beautiful home.  So, as a buyer, you will need to decide if it is worth it to go through the process.

I made a summary list below of some of the highlights to remember.
Feel free to reach out to me if you have any additional questions, or you would like to find these homes in the Palm Springs, CA area.

HUD Guidelines 24 CFR 206.125

This property is a Fannie Mae Reverse Mortgage REO.

Other stipulations of this type of property include:

• Property cannot be sold below appraised value (LIST PRICE)
• No mediation
• No electronic signatures
• No repairs, “AS IS AT TIME OF CLOSING”
• No buyer closing costs paid by seller are allowed on the HUD
• Buyer pays HOA Doc & Transfer Fee
• No utilities are on. Buyer can pay to have them on for inspection
• No agent transaction fees allowed on the HUD, regardless if the Buyer is paying
• Seller will pay Seller’s closing costs and provide buyer with "PDQ Hazard Report"
• Any State, County or City transfer taxes due will be the sole responsibility of the purchaser
• Seller will bring property taxes and HOA current through closing
• 10% deposit on cash offers (Cashier’s Check)
• $1,000 minimum deposit on financed offers (Cashier’s Check)
• 60 day MINIMUM escrow period. Could be longer if title is not clear. 
• Offers that Do Not meet these Guidelines will be REJECTED
• Homepath financing is not available on these properties
• PLEASE US BUYER’S LEGAL NAMES, WHAT IT SHOWS ON DRIVERS LICENSE
• If LLC, will need stamped articles of incorporation pages

HUD Guidelines 24 CFR 206.125 Buyers Guide

HUD Guidelines 24 CFR 206.125

Did you recently come across a listing that states it is a HUD home that has restrictive guidelines referenced as: HUD Guidelines 24 CFR 206.125?
These HUD homes are Fannie Mae Reverse Mortgage foreclosures that are resulting as a default on a Reverse Mortgage.  The seller has many rules to maintain a reverse mortgage, and at some point, they defaulted on the loan.  Even though the borrower does not have payments, the HOA, property taxes, and other fees have to be maintained.  The borrower also has to maintain the property as their primary residence.
Either way, the property will go through the foreclosure process, and eventually be listed with a local Realtor.
Buyers and Realtors representing their buyers need to understand that these properties will NOT be sold for less than asking price.  The seller does an appraisal prior to listing, and they will not accept offers for less than the listed price.  The seller will NOT allow you to add money to the purchase price so you can have buyer credits towards closing costs.  Also, the seller will NOT allow closing cost credits to the buyer at asking price.
Once you do have an accepted offer...
This is where it gets fun for a buyer.  As a buyer, especially in the state of CA, you need to do your inspections, and all of your due diligence.  Often, the buyer will be financing, and if they are, FHA, VA lenders, and some convention loans products, will require a home inspection.  (*Note: Homepath financing is NOT allowed)  As a foreclosure, the listing agent and seller will NOT help with these, and they will NOT have utilities on at the property.  So the buyer, or the buyers agent will have to turn on utilities to do their inspections.  In addition, some water districts will require a signed service card for the water to be turned on, and you have to show proof of ownership, or a lease agreement.  And if you are using a lease agreement, you will need the owner to fill out information with the water district so they have someone to go after if the bill is not paid by the tenant.
Once you have over come these hurdles, and you realize you need repairs to be done to satisfy the lender, you will be responsible for those said repairs.  The seller will NOT make repairs to the property.  And in some cases, it stipulates in the purchase contract that the buyer can not make repairs to the property until after the close of escrow.  These properties are sold AS IS, and no repairs will be made by the seller.
Pertaining to escrow fees, the seller will only cover past due taxes, HOA dues (if needed) and provide a clear title.  They will not pay transfer tax fees, or state fees, or HOA transfer fees (if needed).
HUD properties can be a great find, and often worth the money.  Usually a little bit of sweat equity in the property can turn it into a beautiful home.  So, as a buyer, you will need to decide if it is worth it to go through the process.

I made a summary list below of some of the highlights to remember.
Feel free to reach out to me if you have any additional questions, or you would like to find these homes in the Palm Springs, CA area.

HUD Guidelines 24 CFR 206.125

This property is a Fannie Mae Reverse Mortgage REO.

Other stipulations of this type of property include:

• Property cannot be sold below appraised value (LIST PRICE)
• No mediation
• No electronic signatures
• No repairs, “AS IS AT TIME OF CLOSING”
• No buyer closing costs paid by seller are allowed on the HUD
• Buyer pays HOA Doc & Transfer Fee
• No utilities are on. Buyer can pay to have them on for inspection
• No agent transaction fees allowed on the HUD, regardless if the Buyer is paying
• Seller will pay Seller’s closing costs and provide buyer with "PDQ Hazard Report"
• Any State, County or City transfer taxes due will be the sole responsibility of the purchaser
• Seller will bring property taxes and HOA current through closing
• 10% deposit on cash offers (Cashier’s Check)
• $1,000 minimum deposit on financed offers (Cashier’s Check)
• 60 day MINIMUM escrow period. Could be longer if title is not clear. 
• Offers that Do Not meet these Guidelines will be REJECTED
• Homepath financing is not available on these properties
• PLEASE US BUYER’S LEGAL NAMES, WHAT IT SHOWS ON DRIVERS LICENSE
• If LLC, will need stamped articles of incorporation pages

HUD Guidelines 24 CFR 206.125 Buyers Guide

HUD Guidelines 24 CFR 206.125

Did you recently come across a listing that states it is a HUD home that has restrictive guidelines referenced as: HUD Guidelines 24 CFR 206.125?
These HUD homes are Fannie Mae Reverse Mortgage foreclosures that are resulting as a default on a Reverse Mortgage.  The seller has many rules to maintain a reverse mortgage, and at some point, they defaulted on the loan.  Even though the borrower does not have payments, the HOA, property taxes, and other fees have to be maintained.  The borrower also has to maintain the property as their primary residence.
Either way, the property will go through the foreclosure process, and eventually be listed with a local Realtor.
Buyers and Realtors representing their buyers need to understand that these properties will NOT be sold for less than asking price.  The seller does an appraisal prior to listing, and they will not accept offers for less than the listed price.  The seller will NOT allow you to add money to the purchase price so you can have buyer credits towards closing costs.  Also, the seller will NOT allow closing cost credits to the buyer at asking price.
Once you do have an accepted offer...
This is where it gets fun for a buyer.  As a buyer, especially in the state of CA, you need to do your inspections, and all of your due diligence.  Often, the buyer will be financing, and if they are, FHA, VA lenders, and some convention loans products, will require a home inspection.  (*Note: Homepath financing is NOT allowed)  As a foreclosure, the listing agent and seller will NOT help with these, and they will NOT have utilities on at the property.  So the buyer, or the buyers agent will have to turn on utilities to do their inspections.  In addition, some water districts will require a signed service card for the water to be turned on, and you have to show proof of ownership, or a lease agreement.  And if you are using a lease agreement, you will need the owner to fill out information with the water district so they have someone to go after if the bill is not paid by the tenant.
Once you have over come these hurdles, and you realize you need repairs to be done to satisfy the lender, you will be responsible for those said repairs.  The seller will NOT make repairs to the property.  And in some cases, it stipulates in the purchase contract that the buyer can not make repairs to the property until after the close of escrow.  These properties are sold AS IS, and no repairs will be made by the seller.
Pertaining to escrow fees, the seller will only cover past due taxes, HOA dues (if needed) and provide a clear title.  They will not pay transfer tax fees, or state fees, or HOA transfer fees (if needed).
HUD properties can be a great find, and often worth the money.  Usually a little bit of sweat equity in the property can turn it into a beautiful home.  So, as a buyer, you will need to decide if it is worth it to go through the process.

I made a summary list below of some of the highlights to remember.
Feel free to reach out to me if you have any additional questions, or you would like to find these homes in the Palm Springs, CA area.

HUD Guidelines 24 CFR 206.125

This property is a Fannie Mae Reverse Mortgage REO.

Other stipulations of this type of property include:

• Property cannot be sold below appraised value (LIST PRICE)
• No mediation
• No electronic signatures
• No repairs, “AS IS AT TIME OF CLOSING”
• No buyer closing costs paid by seller are allowed on the HUD
• Buyer pays HOA Doc & Transfer Fee
• No utilities are on. Buyer can pay to have them on for inspection
• No agent transaction fees allowed on the HUD, regardless if the Buyer is paying
• Seller will pay Seller’s closing costs and provide buyer with "PDQ Hazard Report"
• Any State, County or City transfer taxes due will be the sole responsibility of the purchaser
• Seller will bring property taxes and HOA current through closing
• 10% deposit on cash offers (Cashier’s Check)
• $1,000 minimum deposit on financed offers (Cashier’s Check)
• 60 day MINIMUM escrow period. Could be longer if title is not clear. 
• Offers that Do Not meet these Guidelines will be REJECTED
• Homepath financing is not available on these properties
• PLEASE US BUYER’S LEGAL NAMES, WHAT IT SHOWS ON DRIVERS LICENSE
• If LLC, will need stamped articles of incorporation pages

La Quinta Events Oct. 2016

The First Annual Brew in LQ on Saturday, October 22. Craft beer lovers from all around will be treated to over a dozen regional and local breweries, food, music and games at the first annual Brew in LQ. The event will be held at beautiful SilverRock Resort. To purchase tickets to the one of a kind event click here.

What You Need Costume The valley will be packed full of Halloween Parties and Trick-or-Treaters. Make sure you have the perfect costume for this holiday season.

Community Services Classes & Programs: July & August Online registration available at la-quinta.org/register. For more information, please call (760) 564-0096.

La Quinta Boys & Girls Club Community Room Dance, Play, Pretend (2.5 - 5 years) Mon: 9:00 a.m. - 9:45 a.m. (October)

La Quinta High School Dance Room 1006 Beginning Ballet (5 - 10 years) Thu: 6:30 p.m. - 7:15 p.m. (October) Belly Dancing (18+ years) Wed: 6:00 p.m. - 7:00 p.m. (October)

La Quinta Library Dance, Play, Pretend Mon: 4:00 p.m. - 4:45 p.m. (October) Gentle Flow Yoga Mon: 10:45 a.m. - 11:15 a.m. (October) Gentle (Flex) Yoga Wed: 10:15 a.m. - 11:15 a.m. (October)

Ballroom Dancing (Beginning) Tue: 7:00 p.m. - 8:00 p.m. Ballroom Dancing (Intermediate) Tue: 6:00 p.m. - 7:00 p.m. Beginning Guitar Tue: 6:00 p.m. - 7:00 p.m. Friday Social Ballroom Dance Fri: 6:00 p.m. - 7:00 p.m. (October 28 & November 18) La Quinta Glee (5 - 14 years) Thu: 6:00 p.m. - 7:00 p.m. Pen & Ink Thu: 4:00 p.m. - 5:30 p.m. Second Level Guitar Tue: 7:00 p.m. - 8:00 p.m. Ukulele Beginning Wed: 2:00 p.m. - 3:30 p.m. (October) Water Color Tue: 10:30 a.m. - 12:00 p.m. Desert Oasis Strummers Concert Fri: 1:30 p.m. - 3:30 p.m. (October 28) La Quinta Voices Tue: 10:00 a.m. - 11:00 a.m. Mah Jongg Tue: 1:00 p.m. - 4:00 p.m. (Contact Center for more information) Social Bridge Mon: 12:00 p.m. - 3:30 p.m. Call Doris: (760)564-2878 (Contact Center for more information) Fara's Food "Mainly Vegetarian" (55+) Wed: 11:00 a.m. - 12:30 p.m. (October 5, 12, 19, 26) Fara's Food "Mainly Vegetarian" Wed: 11:00 a.m. - 12:30 p.m. (November 2, 9, 16, 30)   Cardio, Strength, Stretch Wed/Fri: 8:15 a.m. - 9:15 a.m. Chair Massage CMT (Clare Dune) Thu: 10:15 a.m. - 12:15 p.m. Meditation Thu: 6:00 p.m. - 7:00 p.m. Personal Trainer (14 years & up) Mon/Wed/Fri: 12:00 p.m. - 8:00 p.m. Personal Trainer (Janice Snyder) Tue/Thu: 12:00 p.m. - 6:00 p.m. Reiki (Healing Art/Meditation) Thu: 10:00 a.m. - 11:30 a.m. (October) Reiki 2 (Distance Healing) Thu: 10:00 a.m. - 11:30 a.m. (November) Sunset Yoga (15 years & up) Mon/Wed: 6:00 p.m. - 6:45 p.m. Taekwondo (4 years & up) Mon/Wed: 5:00 p.m. - 8:00 p.m. Tai Chi Chuan Tue/Thu: 10:15 a.m. - 11 a.m. Zumba (Morning) Tue/Thu: 8:45 a.m. - 9:45 a.m. Zumba (Saturdays) Sat: 8:15 a.m. - 9:15 a.m. AARP Safe Driver (55+) Tue: 8:30 a.m. - 4:30 p.m. (October 4) Cinema Discussion Group Wed: 1:00 p.m. - 3:30 p.m. (November) Herb & Vegetable Garden Group Fri: 9:00 a.m. - 10:30 a.m. (September 9)

Wellness Center Events October Luncheon - Thursday, October 13, 11:30 a.m. $4 per person (maximum of 2 people per household) (Registration begins now!) Online registration is available at la-quinta.org

November Luncheon - Thursday, November 10, 11:30 a.m. $4 per person (maximum of 2 people per household) (Registration begins October 13) Online registration is available at la-quinta.org

Eisenhower Medical Center Lecture Series - Tuesday, October 11, 4:30 p.m. - 5:30 p.m. How Shall We Cook Delicious Fall Vegetables? Reservation required. Speaker: Rosalind Elemy, RD

Dementia Help Center Lecture - Monday, October 10, 10:00 a.m. - 11:30 a.m. Information and resources for caregivers. Call the Wellness Center to register.

Inside Outside Beauty! Lecture - Monday, October 17, 11:00 a.m. - 12:00 p.m. The secrets to keeping your Skin Young! Rhonda Donahue, PhD, Reservations required.

What To Do Run With the cool weather rolling in it's a perfect time to get our running during the day. Enjoy the great views and perfect weather La Quinta has to offer.

What To See Lake Cahuilla A hidden gem in the Gem of the Desert is Lake Cahuilla. With swimmng, camping and picnic areas it's a must see for families and nature lovers alike.

Rentals

Book Park Rentals Online! Reserve the Fritz Burns Park or La Quinta Park by visiting la-quinta.org/register and click "Search,” then "Facility,” then "Calendar," and select your date and time.

Having an event? We've got you covered! The La Quinta Wellness Center is available for private rentals! This facility is perfect for your wedding reception, birthday party, company gathering, banquet, neighborhood event, family reunion, or other social event. The multi-purpose room has a capacity of 200 and includes tables and chairs for up to 200 people. An elevated stage and dance floor are included; large kitchen is available for additional fee. Call (760) 777-7090 for more information and pricing.