The Foreclosure, Hud, Flood Real Estate Deal #22
Bill Fairman (00:05):
We had a guy that bought a a HUD home, which means they got it out of foreclosure through FHA and he found out that he’s going to hit, cause he was gonna. He’s going to borrow the money from us. We found out and it was in a flood zone and we’re not only coast in Charlotte. There’s not too many flood zones, but it was close to this Creek that apparently had some flood issues and he called the city to see if they had a, what they call an elevation survey so he could get flood insurance and then the city they, they said they didn’t know. They get back. The city calls me back and says like, my manager wants to talk to you again. It says, first of all, how’d you get this house? He says, well, I bought it in foreclosure through the HUD store. He said, really? He says, we’ve been trying to buy this house for two years from HUD and they won’t sell it to us because they’re making a Greenway out of all of it and they’re demolishing all the houses along there so they don’t have to continue to worry about the flooding. So they were turning into a park and he said, well, how much you want for it? And um, he says, well, I just bought it. He says, well this is what we offered. And he goes, Sold!
Bill Fairman (01:28):
So he had the thing like 10 minutes, he made $15,000 and then he sold Wendy and I, all the appliances that were in there, they were all stainless steel. They were just replaced. We even got the H vac out of it and used it in other houses that we had. We paid $800 for the GE gas stove side by side, you know, refrigerator freezer and the heating and air conditioning system. Oh. And the dishwasher, all, all stainless steel. They’d only been in the house a few months because they had it re rehabbed after the last flood. And so it turned out that he was going to have a house. He couldn’t get flood insurance on that he’s already purchased and now he can’t get a loan on it because he can’t get flood insurance. And in the meantime, the city bought it from him for more than he paid for it and he was able to sell the appliances fast. That’s a success story.