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How often does HUD reduce the list price on foreclosures & what is the min. percent to offer?

We are first time buyers and have been looking for a home.  A friend suggested HUD foreclosures.  There is a property we are interested in that was reduced to 129,000 but our mortgage approval falls below that at 120,000.  

We have searched the internet and called some realtors to ask about HUD foreclosures.  The only response we have gotten was: Hud does usually reduce the price about 30-45 days when has not sold. 
They want to NET about 87% of the asking price, therefore, you  usually need to offer about 95-96% of the asking price if you want them to pay 3% closing costs and they cover the 6% commission. So 87 plus 9 is 96%. Of course, when a property has been on the market longer than the first 30-60 days, they are ready to sell and will sometimes take a lower %.

The information on the posts we have found here say between 85%-90% but are aged posts.  This property reduced on 10/9. How often does HUD reduce the list price & what min. percent can be offered to win the bid?  Any information from personal experience or advice is greatly appreciated.
  • October 26 2013 - US
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Answers (3)

Profile picture for user1096134
Offer what you are comfortable paying and are approved for.  If you go with the top dollar you'd be happy with and get the house, you'll be happy you did it.  If you try to shortcut to save a little bit and don't get it, you might always kick yourself. 

  • November 09 2013
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Find a buyers agent who can help you structure an offer.  It does not cost you anything to make the offer. 

What condition is the property in?  HUD will not do repairs.  You have to consider that as well.

An agent is your best resource to securing a home at a price you can afford.
  • October 29 2013
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Profile picture for JerryLEvans
Every house is different I have seen houses get multiple offers and sell over list price while another one may sit for months and sell for considerably less. I would suggest finding a Realtor you are comfortable with and allowing them to assist you. It will not cost you a dime. the bank has already signed a contract with the listing agent and commission is paid by the seller (in this case the bank). Let your new agent help you with strategy and finding the perfect property.
  • October 28 2013
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