Buying a foreclosure from lender-need straight answer

[junebug]

A house across the street has been foreclosed on and we want very much to buy it. We contacted the lender that owns the house and were informed it had not yet been conveyed to HUD (previous owner had FHA mortgage), and that we could buy the house directly from lender for the amount still owed on the mortgage plus the legal fees it cost them to foreclose. We submitted a contract, they signed it. We went straight to our bank and made application for a conventional loan and got approved. The lender then said they had to wait for an appraisal from HUD. We called the HUD regional office this morning and they said we CANNOT buy the house directly from the lender! Said it has to be conveyed back to HUD and THEY will sell it. HELP! We don't know who is right. The appraiser from our bank has already been out to appraise the house. We want the house to fix up and live in, not as an investment. It's in a very desirable area and I am afraid once HUD gets it, an investor will snap it up before we get a chance at it. Any light shed on this predicament would be much appreciated.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by junebug:
A house across the street has been foreclosed on and we want very much to buy it. We contacted the lender that owns the house and were informed it had not yet been conveyed to HUD (previous owner had FHA mortgage), and that we could buy the house directly from lender for the amount still owed on the mortgage plus the legal fees it cost them to foreclose. We submitted a contract, they signed it. We went straight to our bank and made application for a conventional loan and got approved. The lender then said they had to wait for an appraisal from HUD. We called the HUD regional office this morning and they said we CANNOT buy the house directly from the lender! Said it has to be conveyed back to HUD and THEY will sell it. HELP! We don't know who is right. The appraiser from our bank has already been out to appraise the house. We want the house to fix up and live in, not as an investment. It's in a very desirable area and I am afraid once HUD gets it, an investor will snap it up before we get a chance at it. Any light shed on this predicament would be much appreciated.<HR></BLOCKQUOTE>

Submit a new offer directly to HUD or find out what Realtors are on their list and work directly with one of the Realtors. If the loan is insured through HUD you can not bypass HUD without their approval. www.hud.gov