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Hey Shapiroamg, I didn't over bid high enough because I got the results this morning and whoever won, put a bid in that was approx. $28,000 over what HUD was asking for, there's no way I can compete with that, I'm a bit blown away by that number.
Kristen, I called into HUD and the rep mentioned that they don't see anything through HUD stating this policy but apparently it exists, go figure ??
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Buying HUD REO with FHA Loan ?
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Mjfadeaway83
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I have a question that I hope a HUD expert can confirm for me.
First off, I have already been pre-approved for a 30 year fixed FHA mortgage up to $100,000 through Wells Fargo. There is a home in Springfield, MA that is HUD owned, the asking price and "as is" value according to HUD is $70,000, I will be bidding as an owner-occupant.
The house appears to be in good condition with no major repairs needed and is listed as being insurable (IN) for FHA financing, I was thinking of putting in an offer over the $70,000 that HUD is asking for but when I spoke to my lender (Wells Fargo) about this, I was told that with an FHA loan, I cannot bid any higher than what HUD is asking for and that if I do, I will have to pay the difference out of pocket, I was told specifically that this is a HUD rule and not a rule through Wells Fargo, can someone please give me some clarification into such a rule ?? The contact person is very reputable and I don't believe he would steer me in the wrong direction but this makes no sense to me.
It seems to me, this HUD Rule is almost discriminatory, as I was told I could go over the asking price with a conventional loan but not with an FHA loan, this would seem to put me at an unfair competative disadvantage, thanks for any feedback.
~M
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