Blog Stories HUD Homes are not your average Foreclosure!

HUD Homes are not your average Foreclosure!

By Gavin Shettler, June 25, 2019

I was working with a buyer looking for a home that could be fixed up and create great equity. We found terrific home in the Cully neighborhood. It was a good value, good bones, and a great location. What I didn’t realize, is that a HUD home (one owned by the government-Housing and Urban, Development-and yes, all paperwork had the Secretary of HUD, Ben Carson, as the seller) is a totally different animal than a bank owned, Fannie or Freddie Mac owned home sale.

First, the HUD home is listed by a local realtor. The listing agent is not who you actually deal with though. There is a third party vendor, hired by HUD, who is the go between HUD, the listing agent, and the buyer’s agent. It wasn’t until the end of the transaction that I actually identified the main person to communicate with as the third party vendor. It quickly became obvious that it was going to be a difficult transaction when it took 5 business days from the time the offer was submitted to when it was officially accepted. HUD will only use their own paperwork and will not sign any other paperwork. HUD will not negotiate anything. The home is sold as-is even if it doesn’t have a furnace (like ours-it was stolen). After a process that really didn’t need to be as hard as it was, we finally made it to closing. Lastly, they kept sending me threatening emails about how bad it will be for my client if we did not close on time. It was HUD that couldn’t sign all the appropriate documents on closing day and almost forced a delay. Luckily, we had a great underwriter who got us closed on time, despite HUD.

Conclusion: Make sure it’s really worth it before getting involved in a HUD home sale!

Gavin Shettler

Earth Advantage Principal Broker

I am a residential real estate broker at Living Room Realty serving Portland, Oregon, and the surrounding area. My clients love working with me for my honesty, integrity, and good communication. Real estate is more than just buying or selling a home, it’s about building authentic and lasting relationships between individuals, families, neighborhoods, and communities. Many of my clients are first-time home buyers, individuals who are ready for their second or third home purchase, people relocating to our area, and sellers who need an agent who understands the nuances of a specific neighborhood. My role as your agent includes facilitator, negotiator, advocate, advisor, and expert in the Portland Metro housing market. I am a certified Earth Advantage Broker and an Energy Trust Ally. I enjoy educating my clients about high efficiency homes and green technology applications. I have lived in Portland for over 20 years and love this city. My background is in Arts administration where I first owned and managed a commercial art gallery. I then founded and ran a non-profit visual arts center and last but not least managed and directed a large housing development of live/work spaces for artists. I live in the Montavilla neighborhood in NE Portland with my wife, Andrea and our children, Beatrise and Augustus. Along with our children we are happy to be parents to our three cats, Charlotte, Yogi and Ferocia. Our four chickens, a leopard gecko and beautiful dog named Lucy. About Living Room Realty, it is a leading real estate company that believes in community and connections. We have 120+ agents between four offices in inner Portland, a office in Vancouver, WA, and a office in Manzanita that serves the North coast of Oregon. We provide a wide range of services beyond residential real estate including rental management, tenant placement, and commercial real estate. Living Room is one of the only real estate companies with B-Corporation status in the nation. The company’s values include integrity, relevance and diversity. Our company was awarded the 2014 Business in Ethics Award for all small businesses in the state of Oregon. Gavin Shettler Principal Broker 503-481-7450 Cell Assistant: Rose Romanick
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Gavin Shettler

Earth Advantage Principal Broker

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