Financial freedom - the only sure way to get there

You buy low and sell high.

OK, great, we all know that.

But what do we buy?

Property.

More specifically, a home.

You simply have to jump on board, even if you think you're not ready.

I'm reminded of something Eleanor Roosevelt used to say to people trying to slow her down:

"If we wait till we're ready, we'll never get started."

Here is where you get started.

The United States government has, for the first time ever, combined the bulk of the repossessed properties it owns - under the authority of the Departments of Housing and Urban Development (HUD), Veterans Affairs (VA), and Agriculture - into one website.

The government hasn't yet officially announced the site's existence, but it's up and running and ready to sell you a house.

Every year, over 100,000 homes end up in the hands of these agencies because of borrower defaults and foreclosures.

These are not McMansions.

They are not for the faint of heart.

You can buy them only "as is."

But - they're priced to sell fast, are marked down promptly when they don't, and you can always see the full appraisal report supporting the asking price, a feature you won't get anywhere else in the market.

Bonus: these properties come with a very important guarantee: if anything turns out to be seriously wrong that the government failed to disclose in advance, the government will make it right.

You definitely won't get that anywhere else in the real estate market.

On the site, you can review what's available community by community, state by state.

Thinking of moving?

Why not buy a house instead of renting?

True, the site's not all tricked out like the commercial sites; I mean, come on, it's the federal government.

But it's enough for you to get your foot in the door.

The government tells you up front, no mincing around, what's in store.

"MOLD" shouts a listing for a house in Akron, Ohio, priced to move at $36,000. "This property has had previous water infiltration and mold."

Some listings estimate the cost of specific repairs to get the house up to code, and recommend escrow amounts to be set aside in advance to make sure repairs get done.

Other listings tell you precisely how much the property has been marked down from the original post-foreclosure asking price.

A house in North Hollywood, California, for example, started at $130,000, and when it didn't sell was quickly knocked down to $104,000.

Joseph McClosky, HUD's acting deputy assistant secretary for single-family housing, said his department's properties often sell quickly because "they truly represent excellent values to the buyer."

He sells upwards of 75,000 homes A YEAR.

Most properties go within a couple months of being listed, but in hot markets they last only days or weeks.

McClosky believes full disclosure of information to his potential buyers is even more important than squeezing out extra dollars. [No, you haven't woken up in the Bizarro world.]

"Our interest is to maximize what we disclose," he said.

How do you proceed once you spot a property online that interests you?

1) contact a local realty agent who is registered with HUD or the VA to handle home sales.

Thousands of agents around the country qualify and often advertise their specialty.

McClosky suggests using online yellow pages and similar search tools to find an agent.

Bear in mind, though, that these agents represent both you and the government.

They generally get a 5.5% commission on the sale price.

2) Visit the property with the agent, scope out the neighborhood, review the disclosures and appraisal report.

All bidding is done online, and bids can be submitted only by the agent.

HUD homes are subject to "offer periods," beginning with offers from "owner-occupant" bidders who intend to reside in the property.

Then the field is opened to all bidders, including investors.

Take a good, hard look at this website.

Where else do sellers try to scare you away with full, frank disclosures and care more about your satisfaction as a consumer than the final price they get?

I am convinced that this is the single best path to making oneself financially secure in the long run if you have no other hope or prospects.

Remember Goethe's wonderful epigram, if you're hesitant:

"In boldness lies genius."

[via Kenneth Harney in the Washington Post. Email:[email protected]]