Insured escrow and cash offers? (appraisal, foreclosed, sales, price)

[AZGal25]

I've been looking at HUD homes and I am wondering how the insured escrow works if you are offering cash? Is there any difference at all? Or is the repair escrow only in the case of an FHA loan?

[dontaskwhy]

Talk with your bank.

[AZGal25]

I don't understand what the bank has to do with it? I'm researching options for once my house that I am selling closes. I want to take some of the cash and buy a foreclosed home. I would be paying cash, no financing.

[MrRational]

Originally Posted by AZGal25

I'm researching options for once my house that I am selling closes.

You'll be given a check for whatever the net balance comes to.
You can then do anything you like with the money.

I want to take some of the cash and buy a foreclosed home.
I would be paying cash, no financing.

That's OK with me.

I've been looking at HUD homes and I am wondering how the insured
escrow works... Or is the repair escrow only in the case of an FHA loan?

The foreclosure section probably addressed this already.

If not...you should probably ask this in there:
http://www.city-data.com/forum/forec...rt-sales-reos/

hth

[kww]

Originally Posted by AZGal25

I've been looking at HUD homes and I am wondering how the insured escrow works if you are offering cash? Is there any difference at all? Or is the repair escrow only in the case of an FHA loan?

yes. if you are paying cash, you do not have to worry about this.

[399083453]

Your closing company can answer your questions.

[dontaskwhy]

Originally Posted by AZGal25

I don't understand what the bank has to do with it? I'm researching options for once my house that I am selling closes. I want to take some of the cash and buy a foreclosed home. I would be paying cash, no financing.

Sorry, but your original post was a little unclear.

[2bindenver]

The insured escrow is for fixes on the appraisal as a condition of closing a new FHA loan. No FHA loan; no escrow.

[DMenscha]

Scratching my head at what an "insured escrow" is. Never heard of it in CA.

[AZGal25]

Here is an example, from California. 19064 N Shore Dr Middletown, CA, 95461 Lake County | HUD Homes Case Number: 042-786701 | HUD Homes for Sale

I'm not an expert, but from what I understand, HUD properties are inspected for any problems that need to be fixed in order to make the house "livable." In order to qualify for an FHA loan, the cost for those repairs gets put into a "repair escrow." Once you make the repairs, which has to be done within a certain time frame, then you get the money back.

The part I was unsure about was if this was only something that needed to be considered when getting FHA financing. Apparently, it is.

It actually seems to work a bit different than when my parents bought a HUD home about 10 years ago. In their case, the repair escrow came out of HUD's side from the sell price and they were given a lump sum up front. Now, the buyer has to provide the funds, which seem to be part of the closing costs, and then get the money back after they make the repairs.