Fernon Meeks gives the low down on HUD REPO sales basics

AXIS Title owner Fernon Meeks discusses the business of HUDs and what to expect when dealing with HUD listings and contracts..

BrokerIPTV: Today we are talking with Fernon Meeks owner of AXIS Title. Fernon thanks for being with us, I appreciate that. Today we are talking about HUDs, this is kind of your specialty and what is the number one thing people should know about HUDs?

Fernon Meeks: HUD properties are sold as is.

BrokerIPTV: Period?

Fernon Meeks: Period, as is. The HUDs are not going to do anything to the property to fix it, absolutely.

BrokerIPTV: Alright, now what should lenders know about financing HUDs?

Fernon Meeks: The biggest issue I see lenders having, and they should know ahead of time, is that they have to get figures to the closing company 8 business days in advance.

BrokerIPTV: Yeah, now there are number of lenders that haven't done FHA loans for a while, I am sure you are running into, what more than your average amount of questions?

Fernon Meeks: Yeah, FHA is a new sub prime, so, absolutely.

BrokerIPTV: I mean it was always there?

Fernon Meeks: Yeah, sure.

BrokerIPTV: People just werent using it. What do I need to know about the HUD listing or how they list HUDs?

Fernon Meeks: HUDs are listed every Friday for the first time they hit the market, the very first time they are on the market for 10 days, for owner occupancy only. Its a bid period for 10 days. On the 11th day if there aren't any acceptable bids, then it is open to investors. They are also listed on Fridays when they are returned to markets for price reductions. Those are listed with a 5 day bid period for owner occupants, on the 6th day investors can bid.

BrokerIPTV: Now, the sales contract for agents who havent done a HUD, is very different.

Fernon Meeks: Very different.

BrokerIPTV: Explain how?

Fernon Meeks: Its a one page contract, instead of 11. It is very nice and then there are a lot of addendums. The big difference is there is not any timeline, there are not any dates on the contract.

BrokerIPTV: Okay, because they do not like dates or what is it?

Fernon Meeks: No, and that is one of the hardest things agents have is determining what dates and deadlines are. You just have to known the dates and deadlines. They are not on the HUD contracts, so thats a little difficult.

BrokerIPTV: Now the reason why we had you come in and talk about HUDs is that Axis Title specializes in HUDs, how did you get involved in that?

Fernon Meeks: Well, I've been an agent in the Denver market for 12 years and my niche has been investment properties and HUD properties. As owner of Axis Title and Escrow, we specialize in helping our clients with those as well and our clients obviously are the agents. So, we will walk an agent through the transaction and owner actually has to pay or buyer has to pay for the owners premium, which is different than a regular sale. So, we offer a lower rate and we will come walk them through it step-by-step.

BrokerIPTV: A little known fact the buyer gets to choose the Title Company.

Fernon Meeks: Title company absolutely, because they are paying for it. So, we feel if you can get a lower price for your client on the owner's premium and we well walk the buyer through, the agent through, and the lender through the transaction it makes little smoother.

BrokerIPTV: Sounds goods, Fernon thank you very much, appreciate for coming.

Fernon Meeks: Thank you, for having me.

Posted on March 27, 2008 09:29:56 by Blog Author