Bidding/Winning Procedures
· Closing: What You Should Know
· E Signatures
· Lead Base Paint (<1978 Home)
· New Disclosure Has HUD Home Buyers Puzzled
· Property Condition Report (PCR)
· Qualify Letter (Lender Letter)
· What is different about HUD Homes?
· Why HUD left $20k on the Table
A: ELECTRONIC BIDDING
Placing the bid:
All bids must be placed on the internet. Go to www.hudhomestore.com
1. Click on HUD HOMES for SALE
2. Click on STATE
3. Select Search mode: By City, Zip Code, Case Number, or Price Range
4. Click on the property
5. Below the information click on Submit Bid
6. Enter Broker federal Tax ID or Social Security Number
A. Enter Purchase Price from Line 3
B. Enter Financing Type from Line 4
C. Enter Closing Costs from Line 5 (Max 3%)
D. Enter Selling Agent Commission from Line 6a. (Max 3%/Min $1,250)
E. Enter type of purchaser from Line 8.
Purchaser Information
The purchaser’s full name, social security number, and address are required.
Investor bids for a company require the full company name, FIN, and address.
A. Enter the primary purchaser’s SSN or FIN
B. Enter the last name or company name
C. Enter the first name
D. Enter the current address
E. Enter the city
F. Enter the state
G. Enter the zip code
Broker/Agent information
H. Enter agent/broker phone number
I. Enter agent/broker fax number
J. Enter agent/broker name
Bid Awards
Barring any technical difficulties, winning bids are posted by 1:00 PM PM on the next business day following the bid deadline. The posted bid results should be considered preliminary acceptance subject to the review and approval of a correct and timely sales package. Owner occupant bid acceptance is also subject to verification of compliance with HUD
owner occupant guidelines. In the case of an GNND/OND/TND sale, the award is subject to verification of information reported on the required HUD 9548-A contract addendum.
Bid Acceptance - If your bid is accepted it is your responsibility to send the original signed sales package to the Asset Manager including the purchaser’s prequalification letter or verification of cash within 48 hours (weekend and holidays excluded).
Over-bidding with FHA Financing - If the purchaser is obtaining FHA financing, your buyer will be required to use HUD’s FHA “AS-IS” appraisal. Therefore, if the purchaser overbids the appraised value and is obtaining FHA financing, the purchaser must pay the overbid difference in cash. This is because FHA will not insure a loan greater than the appraised value of the property
Pre-Qualification of Purchasers – Broker/agents are responsible to see that potential buyers have been pre-qualified for a loan by a lender. A pre-qualification letter on the lender’s letterhead must be submitted with the sales contract package.
SALES CONTRACT PACKAGE
All packages must be in the Asset Managers’ office within 48 hours of bid results.
All packages must contain the following:
1. Sales Contract – HUD 9548
2. Lead Base Paint Addendum – with property information on the website
(properties built prior to 1978 only)
3. Copy of the Earnest Money – certified check or money order payable to HUD
4. Radon Gas/Mold Disclosure
5. Owner/Occupant Certification (if applicable)
6. Purchaser Rights and Responsibilities
7. For Your Protection Home Inspection
8. Inspection Addendum to the contract
9. Electronic Filing Addendum
10. Pre-qualification letter or verification of funds
If the contract package contains errors or omissions, the bid may be cancelled and property re-listed available. Prior to submitting the sales contract package, review the contract and addenda for accuracy and completeness.