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Phoenix, AZ HUD ForeclosuresBefore any foreclosure offer is submitted to HUD, the foreclosure buyer is required to deposit with the HUD registered real estate broker an earnest money deposit. An earnest money deposit is money presented with an offer on a foreclosure that shows that the buyer is serious about purchasing a foreclosure. HUD only allows the earnest money to be either 1) a
cashiers check or 2) a money order. If the purchase price is $50,000 or
less, the buyer is required to deposit $500. If the purchase price is
greater than $50,000, the required deposit is $1,000. If a buyer's offer
is rejected, the earnest money is returned in full to the buyer. For an owner-occupied foreclosure buyer: The entire deposit will be returned if it is requested in writing and adequate documentation is included when 1) there has been a death in the immediate family, 2) there has been a recent serious illness in the immediate family that has resulted in substantial medical expenses, income loss or adversely affecting the buyers ability to purchase the home, 3) there has been a loss of work by the primary wage earner or substantial loss of income at no fault of the buyer or 4) there is good cause as determined by HUD. On an uninsured foreclosure sale, the foreclosure buyer forfeits 50% of the deposit if the purchaser is unable to obtain a mortgage, despite good faith efforts from the buyer. However, the foreclosure buyer forfeits 100% of the deposit in those instances when no documentation is submitted, documentation fails to provide acceptable cause for the foreclosure buyer’s failure to close or where documentation is not provided within a reasonable time following contract cancellation. For a foreclosure investor: The entire deposit is forfeited, regardless of reason unless the foreclosure is an insurable property and the foreclosure purchaser is determined by HUD to be an unacceptable foreclosure buyer (in which case the investor loses 50% of the earnest deposit). Before deciding on which foreclosure to bid on, it is important for a foreclosure buyer to sit down with his or her qualified real estate broker and discuss a strategy to buy HUD foreclosures. For example, HUD may pay up to 3% of the bid price towards the buyer’s closing costs (in Arizona). However, this may affect your net bid amount (as discussed above). All sales must close within 45 days. Closings later than 45 days on HUD foreclosures require an approved extension and may (most likely) will incur a fee. Extensions may be granted at the sole discretion of HUD or its authorized agent. A foreclosure buyer may not make any repairs to the foreclosure prior to the close of escrow. Furthermore, the purchaser is not authorized to move any of his or her personal effects into the foreclosure prior to the close of escrow.
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Ready to buy Phoenix
foreclosures, call Rob Madden is a multi-million dollar producing Realtor® with Green Leaf Realty, LLC in Phoenix that has advised, consulted and negotiated on the behalf of buyers of Phoenix foreclosures, home buyers and sellers across Phoenix. For more information on buying foreclosures, relocating to Phoenix, buying foreclosure real estate, or aggressively selling a home in Phoenix, call Rob directly at 480-888-1234.
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Rob Madden, Designated Broker,EcoBroker,ABR,CNE,GREEN,
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