AboutJim Root Expertise Can inform on "What exactly IS a HUD Property & can one purchase one of these Homes at BARGAIN PRICES'?" Can answer questions with regard to using a variety of FHA-Insured Loan Programs for the purchase of HUD-Owned properties--the "Traditional" FHA Mortgage, the "203B," as well as two "Special" FHA Loans, the 203K & Streamline 203K. The 203B is used to purchase properties that meet FHA's Minimum Property Standards & the 203K & Streamline "K-Loan" are "Renovation Loans" that can be used to purchase & repair all in one loan package! Can provide GENERAL information on HUD property sales procedures, and the procedures used by VA & other Agencies that may put "Foreclosed Properties" on the market! Cannot give legal advice or opinions, nor serve as rhe Questionners' "Agent," but can "point the Questioner in the RIGHT DIRECTION for special guidance & assistance" with a HUD(or other "Foreclosed") Property purchase! My Research Assistant, Gale, shown here with me, is a former Licensed Realtor.
Experience Over 30 years as a "Real Estate Professional," including working as a Licensed Realtor, Residential Appraiser & Morgage Banker in the "Private Sector" and serving as a GS-12 Realty Officer with HUD/FHA for over a decade! Worked as Deputy Chief of the HUD Property Sales Division in Alaska and as Chief FHA Appraiser for HUD's Washington State Jurisdiction.While with HUD/FHA was trained & qualified as an FHA Loan Underwriter, Construction Analyst, Review Appraiser & Property Sales Specialist! Have worked in the Real Estate Markets in Alaska, Washington,Idaho,& Oregon over the past 30 years! Am familiar with "Other Markets" via continuous research!
Organizations Former Member of National Association of Realtors(NAR) & Society of Real Estate Appraisers (SREA)Currently a member of Mortgage Bankers Association of America (MBAA) & National Association of Review Appraisers & Mortgage Underwriters (NARA/MU)
Publications Articles published in various National, Regional & Local Real Estate-related magazines, booklets & newsletters. Co-authored several HUD/FHA Handbooks and numerous Marketing Materials while with the US Government Housing Agency!
Education/Credentials Associates Degree with emphasis on Real Estate,Bachelors Degree in Mass Communications & Masters Degree in Education/Teaching. Numerous private sector & government-sponsored Real Estate-related Courses over the years!
Awards and Honors Numerous Awards & Honors for Realty Marketing & Sales while a Realtor,"Outstanding Performance Awards" annually while with HUD/FHA. Earned the following Professional Designations: "Certified Residential Originator" (CRO) from the MBAA; "Registered Mortgage Underwriter' (RMU) and "Certified Review Appraiser" (CRA) from the NARA/MU.
Question Dear Jim Root , I thank you for your answer and I wanted to ask you about what the bank that is holding the loan might think ? Do they have any say as to if we can or can not rent our home to some friends that actually want to assume our loan when ever they can qualify for it ? They had a bankruptcy 2 years ago and a foreclosure when everything collapsed but before this they had great credit he was a realtor and doing fine . They just went to our bank to try & assume our 100% loan of $ 74,000 . They wanted to do a deal just between us, at first they wanted to do a quit dead but we backed off after learning what it was and the bank was not to know about it, but we do not want to do anything unless it is all above board . Thanks, Dusty
Answer DUSTY--
If "the bank that's holding the loan" is the same bank" that made you the current loan, they MIGHT originate a loan now or consider what's called a qualifying assumption." If the "bank" is one that the orginator SOLD it to, they won't budge! And if you mean a "Quit Claim Deed," that would GIVE AWAY your RIGHTS to the Home, but you'd STILL be responsible for the money owed to the Bank! That would be a RISKY thing to do--and still violates the terms of your current Mortgage.
I hate to say tbis but if your Friend is also a REAL ESTATE AGENT, he/she's not a very good one of EITHER in MY OPINION.A good Realtor would have been able to answer all of the questions you've asked me and a good Friend wouldn't be asking you to put yourself in a position that could cause you to lose your Home and all equity in it by ignoring the "Due on Sale (DOS) Clause"of your current Mortgage/Deed of Trust!
Please go back and read my first response to you--getting more "creative" than my suggstions there will likley be more "below" than "above board" and helpful to your
"?Realtor/Friend?"
more than you! You may lose your Home through Default on the DOS Clause and Foreclosure!
GOOD LUCK!If you decide to go the Lease with Option to Buy" route, I URGE you to use ANOTHER Realtor to represent YOU!("He who serves as his own Lawyer has a Fool for an Attorney,"somebody said. I say "One who engages in a Real Estate purchase and/or sale with a Family Member or Frienda as Purchaser, Buyer and/or as the sole Realtor involved may find that his/her "Best Interests" have NOT been served!
SO,I FURTHER SUGGEST THAT YOU GET A LISTING AGENT TO REPRESENT YOU & FROM ANOTHER COMPANY THAN THAT FOR WHCH YOUR"FRIEND" WORK(ED).
