Real estate auction marketplace Hubzu has introduced new features to help traditional home buyers purchase REO properties as their next residence, according to an announcement from Hubzu.
Using the new features, Hubzu users will be able to see upcoming listings pre-auction and also place bids on homes that are contingent on obtaining rehabilitation financing from HUD that allows the price of a single mortgage to include both the price of purchasing the home as well as the cost of renovation. Hubzu users who are purchasing distressed properties to use as their primary residence may find this feature helpful.
With Hubzu’s new pre-auction listing feature, users will be able to preview, monitor, and research properties before they appear in a live Hubzu action, which will make it easier for buyers to discover properties of interest and prepare for bidding prior to the auction. Buyers can also see how many people are watching the same auction once the auction is underway, and they can set automatic bidding amounts to make adjustments to their high bid once they receive an email notification telling them they’ve been outbid.
Using the FHA’s 203(K) financing feature, buyers can make their bids contingent on rehab financing which will allow them to finance both the purchase and renovation of the property with a single mortgage (on qualifying properties). This feature will open up substantial opportunity for qualified buyers to purchase distressed properties, according to Hubzu.
“Traditional home buyers are a growing segment of Hubzu users and we are adding new features to help them plan which properties to bid on. By adding the 203(k) financing as a contingency option, Hubzu helps increase the housing stock of affordable homes by making it easier for traditional buyers to purchase bank-owned homes,” said Steve Udelson, President of Hubzu. “When traditional buyers purchase distressed properties with 203(k) financing, they’re not only making a smart investment, but are also strengthening communities.”
Hubzu has facilitated the sale of more than 149,000 homes via a transparent online sales and auction process since 2009.