Upcoming Foreclosures

Question about HUD housing and buying foreclosures?

My husband and I put in a bid last week for a home that was opening at a minimum bid of a certain amount. We put in a bid for $8,000 more than the minimum amount and won the bid. We were very excited until this evening when the realtor called and told us that instead of the initial closing cost, she just received word that included with the closing cost we will now have to bring an additional $5,000 to the table. It turns out that we bid higher than what the government appraiser has appraised the home for, and now we have to make up for the difference. If we would have known what the appraisal was to begin with than we would have stayed much closer (they don't disclose the gvmt appraisal before purchase). And just to put the icing on the cake.....my county appraisal district has the house and property appraised at $70,000 more than the government! Im not even kidding! Am I paying for Fanny and Freddy's screwing up or what? I mean is this really the American dream? The county government over appraises so I have to pay more taxes and the government appraise conveniently under appraises so that we have to pay the difference. Are there any realtors, brokers or mortgage advisers who can give me some guidance on how to fight these cost back down? This house has been through the HUD process twice.. now I know why. Any help?

Public Comments

1. The tax assessment means nothing other than it what you are paying taxes on. The tax assessment is not an appraisal. The problem is you bid more than appraised market value of the home and no lender is going to lend on more than appraised value, they do not lend on tax assessment. No one screwed up here but you, by bidding to high.
2. I'm surprised that your real estate agent did not keep up on the current bid for you, when you submitted yours. Unfortunately, you WILL have to pay the amount that you "overbid" on. The reason you have to do this, is because a lot of investors are out to buy these houses, flip them, then sell them for a lot more. So they overbid, in order to insure that they receive the house. It's not like an auction, when the highest bidder wins. The bank wants their money, and if somebody is offering to pay up 5,000 over the asking price, they are going to take it! Good luck!