This section is intended to provide a basic overview of buying, and selling a HUD home for Brokers and Agents. For complete guide and answers to further questions view HUD’s website, www.HUD.gov or view the HUD-published FAQs at: http://www.hudhomestore.com/ListingSiteFAQ.htm.
Real Estate Broker/AGENTS FAQs
See below for several of the most commonly asked questions regarding HUD properties. This section is intended to provide a basic overview of buying, and selling a HUD home for Brokers and Agents. For complete guide and answers to further questions view HUD’s website, www.HUD.gov or view the HUD-published FAQs at: http://www.hudhomestore.com/ListingSiteFAQ.htm.
Q. What is a HUD home?
A:A HUD home is a single-family home or other type of residence that is backed by the FHA and is now in foreclosure. Once a home backed by the FHA goes into foreclosure, it is deeded back to HUD by the lending mortgage company When payments are not paid on a mortgage insured by the Federal Housing Administration (FHA), the lender (mortgagee) forecloses, or accepts a deed-in-lieu. The mortgagee files a claim with the Department of Housing and Urban Development (HUD)for the unpaid principal balance and conveys title of the property to HUD. Once conveyed, the Asset Manager then begins the maintenance and marketing of the property.
Q: Who can buy a HUD home? Are they only available for low-income buyers?
A:Anyone pre-qualified for a mortgage can purchase a HUD home. There is however an initial period where the homes are only available to owner occupants. After a specified time (usually 30 days) the property becomes available to both owner occupants and investors alike. The only people restricted from purchasing a HUD home are any employees, relatives, subcontractors, or business associates of the managing contractor.
Q: Some HUD-owned houses might not be in good condition. Does HUD make repairs?
A:HUD homes are sold as is, without warranty “AS-IS”. That means HUD generally will not make repairs except to preserve and protect the property or to eliminate a major safety issue. There are financing options such as the 203k loan program to assist home owners in financing such repairs. It is encouraged that all buyers get an inspection after the offer is accepted.
Q: Who can sell HUD homes?
A: Only HUD registered (Register on Hudhomestore.com)real estate brokers and their sales agents may submit electronic bids for HUD owned properties on behalf of buyers. HUD registered brokers may also advertise HUD Homes provided that they include the fair housing logo, identify the home as “HUD owned”, do not advertise as distressed or foreclosure sale, and do not represent listing as exclusive. BROKERS MUST REGISTER ANNUALLY WITH HUD.
Q: How often do I resubmit information to HUD to keep my NAID# current?
A: The designated broker must update the registration information annually and/or any time there is a change from what HUD was provided on the SAMS 1111 or SAMS1111A Forms. Changes to the ownership, address, telephone number, or authorized signatory should be reported on a new SAMS 1111, with box checked in the first item and the information that needs updating clearly printed on the form. Also, many brokers forget that whenever you renew your real estate license, you must send in a new SAMS 1111 with a copy of the renewed license. If HUD has only your expired license on file, they may deactivate your NAID because they have no evidence on file that you are still legally doing business under the license laws of your state. Regardless, your NAID should be renewed annually.
Q: How can I get permission to show a HUD home?
A:If your broker has an NAID # and the property is available on HUDHOMESTORE.com website, you may call CSS (866-891-7469) and show it at your convenience. Be sure to sign in on the registry that is posted in the house.
Q: Who qualifies for the Next Door programs and what is their discount?
A:Only full-time law enforcement officers with arrest authority, full-time licensed teachers or administrators in public or private pre K-12 grade schools, full-time Emergency Medical Technicians and full-time Fire Fighters may purchase directly through the Good Neighbor program. Their discount is 50% of the list price. Closing costs and broker commission costs can be added to the loan amount if the buyer uses FHA financing. There are other restrictions the buyers must follow. For example, they must reside in the home a minimum of 36 months. For more information and requirements, please see the HUD website.
Q: When did the new HUD process begin and how is it different?
A: Starting September 27th, 2010 HUD has awarded 3 asset managers the new 5 Year HUD Contract. There is a new web site: www.Hudhomestore.com. Properties are placed daily on the site and bid cut-offs are daily at 12 midnight.
Q: Who are the 3 Asset Managers (BLB’s: Broad Listing Brokers) in Maryland. How can we contact them?
A: 1. Matt Martin Real Estate Management (MMREM). MMREM uses Asset Management Real Estate as their BLB, AMRE, can be reached at 303.740.6110 or 877.482.3725
3. Hometelos tele: fax: 800:
Q: What is the role of the BLB's? Please explain the difference between the NLB/CLB and the BLB.
A: The BLB is known as the Broad Listing Broker. Through its subsidiaries the BLB, is a nationwide real estate company with the ability to provide oversight and quality control to the marketing activities performed by individual brokers and agents(NLB: Neighborhood Listing Broker also known as Listing Brokers (LBs) are subcontracted by the Asset Managers and are responsible for listing the property in the local MLS and provide assistance to realtors with access to the property and with sales information. Selling brokers are limited to a maximum of 3% of the purchase price for their commission. A selling broker commission of less than 3% can be entered when submitting an offer. Upon submission of a bid, the selling broker enters the actual commission they wish to be paid on the commission line of the HUD sales contract; (line 6a). HUD’s software is set up to automatically calculate any commissions to be paid to the listing broker. On certain predetermined “hard-to-sell” properties, a flat fee commission of $2,500 ($1,250 each) will be offered.
Q: What is the minimum commission paid as many homes are under $20,000?
A: If indicated there is a minimum commission of $1,250.00 to selling agents/brokers otherwise its 3%.
A: During the exclusive listing periods, bids may be submitted by Owner Occupants. At the conclusion of these exclusive listing priority periods, all general public bids will be accepted (extended listing period).
A: This report is available on the HUDHomestore.com under the addendums tab; it is provided to assist the purchaser in assessing the condition of the property. It is NOT in any way a guarantee or warrant that the property is free of visible or hidden defects. All purchasers are strongly urged to complete a full property inspection with the utilities activated to identify the current condition of the property and any repairs that may need to be completed.
A: The Field Service Manager (FSM) is the HUD contractor responsible for property maintenance and preservation services such as: inspecting the property, securing the property and providing on-going maintenance.
A: There are five buyer types that are eligible to purchase HUD Homes: Owner Occupants, Investors, Good Neighbor Next Door (GNND), Eligible Nonprofit organizations, and Approved Government Entities.
· Owner Occupant buyers are individuals with a valid Social Security Number (SSN) who have not purchased a HUD property within the past two years as an owner occupant. An owner occupant must live in the property as their primary residence for one year and may not purchase another HUD Home for two years. Owner Occupants can bid on homes in the exclusive or extended periods.
· Investor buyers are individuals with a valid SSN or Employer Identification Number (EIN) who purchase the property as an investment. Investors can bid on homes in the extended listing phase. There is no restriction on how many properties an investor may purchase.
· GNND buyers are qualifying law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters /emergency medical technicians. HUD offers a discount of 50% from the list price of a home located in revitalization areas and in return GNND participants must commit to live in the property for at least 36 months as their sole residence. HUD also requires that buyers sign a second mortgage and note for the discount amount. The GNND buyer or spouse may not have owned a property within the last 12 months, or have participated in the GNND program before. A GNND buyer must bid 100% of the listing price. GNND buyers can use any type of financing or cash deal. FHA financing: a GNND buyer must qualify for the entire purchase price prior to discount. The buyer can finance into the mortgage all reasonable and customary closing costs, including prepaids and real estate commissions. HUD will NOT pay any closing costs or real estate commissions. GNND participants must submit bids through a real estate broker licensed to do business in the state where the property is located. If using FHA financing to purchase the home, GNND buyers can purchase the home for only $100 down. FHA financing must be used for the $100 down payment incentive to apply.
· Approved Nonprofit Organizations can bid on homes in lottery, exclusive, and extended phases provided the properties are located in approved purchase areas. If the property is in the lottery phase, the home must be uninsured. Nonprofits rank below Government Entities in the bid selection process for the lottery, but above them for exclusive and extended listings. Nonprofits cannot bid for dollar homes.
· Approved Government Entities can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas. If the property is in the lottery phase, the home must be uninsured. Only Government entities can bid on Dollar homes.
A: There are 4 listing periods: Lottery, Exclusive, Extended, and Dollar Homes.
A: Properties that are eligible under HUD Special Programs are first offered to GNND and HUD approved Nonprofits and Government entities by Lottery. Eligible properties located in HUD designated Revitalization Areas and uninsurable properties located in approved purchase areas of an approved nonprofit or government entity are listed for sale for a period of seven (7) calendar days (the Lottery Period).
· Insured Single Unit Properties within a Revitalization Area - Only bids from GNND participants may be accepted.
· Uninsured Single Unit Properties within a Revitalization Area - Only bids from GNND participants, qualified nonprofit organizations and government entities whose approved purchase area covers the location of the property, may be accepted. In the event of competing bids from the aforementioned groups, the order of preference is as follows: (1) potential GNND Program participants; (2) government entities; (3) qualified nonprofit organizations.
· Uninsured Multi-unit properties within a Revitalization Area - Only bids from approved nonprofit organizations and government entities whose approved purchase area covers the location of the property may be accepted.
· Uninsured Properties in a non-Revitalization Area - Only bids from approved nonprofit organizations and government entities whose approved purchase area covers the location of the property may be accepted.
A: Unsold insured (I) and insured with escrow (IE) lottery properties enters a ten (10) day owner occupant Exclusive Listing period. All bids received during this period are treated as having been received simultaneously and if no winning bid is received by the 10th day, the property will be extended to all buyers.
A: Unsold uninsured (UI) lottery properties enters a five (5) day owner occupant Exclusive Listing period. All bids received during this period are treated as having been received simultaneously and if no winning bid is received by the 5th day, the property will be extended to all buyers.
A: The exclusive listing period is reserved for Owner Occupant bidders, qualified nonprofit organizations and government entities and may vary depending on the property’s insurability.
Exclusive Listing Period – IN and IE
· There is a 30 day exclusive listing period for owner occupants for IN (insured) and IE (insured with escrow) properties. All bids received in the first 10 days are treated as having been received simultaneously and if no winning bid is received by the 10th day, the bids are reviewed daily for the remainder of the exclusive listing period (up to 20 days) for owner occupant purchasers only.
Exclusive Listing Period - UI
· There is 5 day exclusive listing period for owner occupants for UI (uninsured) properties. All bids received in the first 5 days are treated as having been received simultaneously and if no winning bid is received by the 5th day, the property is made available to all bidders.
A: Properties that are insurable (I) or insurable with escrow (IE) that were not sold in the Exclusive Listing Period are open to ALL bidders in the Extended Listing Period, starting on the 31st day. All bids received on the same day are treated as having been received simultaneously and are opened daily at the end of each business day.
Properties that are uninsured (UI) that were not sold in the Exclusive Listing Period are open to ALL bidders in the Extended Listing Period, starting on the 6th day. All bids received on the same day are treated as having been received simultaneously.
These are listing codes, finance types that describe the FHA insurability of a property.
Q: What are the different types of bid status?
Open: The bid has been submitted and is awaiting review by the Asset Manager. The bidder can modify or withdraw their bid.
Accepted: The bid has been accepted by the Asset Manager.
Withdrawn: The purchaser or their bidder has withdrawn the bid, and it is no longer under consideration by HUD.
Cancelled: The bid has been cancelled.
Q: What is a “complete” sales contract?
Sales Contract - HUD Form 9548 and certification of broker form.
Addendums: Lead Based Paint (if applicable), Radon & Mold Disclosure, Earnest Money, Forfeiture and Extension Policy, Get a Home Inspection Notice, Owner Occupancy form (if applicable)
A Pre-Qualification letter from a certified, licensed lender is a requirement on all sales containing a mortgage contingency. For cash sale, verification of availability of funds (copy of bank statement, etc.)
Earnest Money Check (original funds)
A: Yes, you can cancel an offer after it has been submitted, until the bid opening date. Log in to HUDHomestore.com, click Bidder Functions, and go to Review your Bids. Click the bid you want to cancel. Click the Withdraw this Bid button. A summary screen will appear, and you will again have to click the Withdraw this Bid. The bid is then withdrawn from consideration by HUD. You will not be able to cancel an offer after the bid opening date has passed.
A: In the event that there is more than one acceptable bid received, the Asset Manager will award to the highest net bidder and hold back-up offers. Back-up bidders will be notified by email at the time of the bid award. The completed contract package should be completed and held by the agent until further notification. If the awarded bid cancels within 15 days (and the contract has not been ratified by HUD) the back-up offer will be contacted by email and advised to send the necessary documentation, within 2 business days of acceptance.
A: If all received bids are unacceptable, the Asset Manager may counteroffer by providing all bidders with an identical minimum acceptable bid allowing them to counteroffer with a cut-off date for submitting bids. The highest acceptable net counter-offered bid received within the specified time will be the winner. If none of the counteroffers meet the requirements, the bids will be rejected and be listed under the extending listing period.
A: As a bidder, you can review all HUD initiated counteroffers by selecting the Counteroffer search criteria to 'Yes' on Review your Bids at HUDHomestore.com. Also, if you have been notified that there has been a counteroffer, your original bid will have been cancelled. Go to the Review Your Bids screen, and locate the bid. Click the Property Case number link to view the Property Details screen. You will then see a link that you can use to respond to the counteroffer.
Q: What are the Required Earnest Money Amounts?
A: 1% of the Sales Price, minimum of $500, max of $2,000.
A: The letter must be a Qualify not a Pre-Qualify letter on the lending institutions Letterhead stating the property and reference number.
Q: How is the repair escrow amount determined?
The FHA appraiser lists the estimated cost of repairs needed to bring the property up to minimum FHA standards. This amount is then multiplied by 110% and this amount is listed as the repair escrow amount. Example: if repairs total $1,000 x 110% = $1,100. The Repair Escrow amount will be listed at $1,100. Repair escrow ONLY applies to FHA financing – not cash or conventional transactions.
The DE Underwriter (FHA Direct Endorsement Underwriter) will determine the final 203(b) mortgage amount. The DE Underwriter will take into account the repair escrow amount to determine the FHA loan amount. The DE underwriter will determine this amount. Regardless of whether or not a repair escrow will be used in the purchase of a home, the lines on the Sales Contract that request the down payment amount and the secured mortgage amount should be filled in "TBD" (To Be Determined). The line associated with the length of the loan should also be filled in TBD. Please remember that the repair escrow amount needs to be filled in only if the buyer is using 203(b) repair escrow financing.
A: HUD allows up to 3% Real Estate Commission. Although HUD may pay for these costs, keep in mind that the higher the closing cost and commission will reduce your Net to HUD and may affect your competitive bidding ratio. For more information, ask your real estate agent or the listing broker. Please see the Forfeiture and Extension Policy addendum for a list of the closing costs that will automatically be paid by HUD and other closing costs that may be paid by HUD. Reference HUD Notice H2009-04. Upon closing of a HUD-owned single family property, the Department will allow to be deducted from its proceeds, purchaser financing and closing costs considered to be reasonable and customary in the jurisdiction where the property is located. Form HUD-9548 (Sales Contract – Property Disposition Program), shall be used to reflect the total dollar amount HUD is expected to pay towards a purchaser’s financing and closing costs. However, in no event may the costs exceed three percent (3%) of the property’s gross purchase price. If the total closing costs reflected on the HUD-1 settlement statement are less than the amount indicated on the sales contract, HUD will reimburse only the actual costs charged and will not credit the purchaser with any difference either in cash or through a reduced purchase price. Within the three percent (3%) of the Allowable Closing Cost allowance, HUD will reimburse loan origination fees up to one (1%) percent of the mortgage. However, on an FHA 203(k) rehabilitation mortgage loan, HUD will reimburse one and a half percent (1.5%) of the mortgage. On the Supplemental loan to the 203(k), the Supplement Origination Fee will be payable by HUD at 2.5% of B10 on form HUD-92700 (203(k) and Streamline K Maximum Mortgage Worksheet), not to exceed $875.
Q: Please explain the Bid Timelines? On Hudhomestore.com it states 27 days, 14 hrs, and 15 minutes?
A: Insured and Insured with Escrow Properties
Bidding is restricted to Owner Occupants only for the initial 30 days that the property is listed. The 27 days refers to OWNER OCCUPANTS. On the 11th day of being listed the Asset Manager will open all bids received Days 1–10 as though they were received simultaneously and if there is a bid that meets the Asset Manager’s thresholds, it will be accepted. If no bid meets the Asset Managers’ thresholds, the property will remain on the market and bids will end at 12 midnight everyday and be opened everyday at approximately 1 PM of the day thereafter until an acceptable bid is received. 203k loans may be available for these properties.
A: Uninsured Properties
Bidding is restricted to Owner Occupants for the initial 5 days that the property is listed. On the 6th day the Asset Manager will open all bids received Days 1–5 as though they were received simultaneously and if there is a bid that meets the Asset Manager’s thresholds, it will be accepted. If no bid meets the Asset Managers’ thresholds, the property will remain on the market and bids will end at 12 midnight everyday and be opened everyday at approximately 1 PM of the day thereafter until an acceptable bid is received. 203k loans may be available for these properties.
Q: Can OCCUPANCY OR REPAIRS be done PRIOR TO CLOSING?
A: Repairs are not to be completed on any HUD property prior to the close of transaction. Buyers are not permitted to move into the property or move their personal possessions to the property. Neither bid acceptance nor ratification of the contract constitutes ownership. Occupancy or initiating repairs prior to closing will be treated as trespassing and may
result in the cancellation of the sale and forfeiture of earnest money. Any broker or agent disregarding this rule may be subjected to suspension of bidding privileges.
Q: What is the Bidding Process?
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
D. Enter Selling Agent Commission from Line 6a.
E. Enter type of purchaser from Line 8.
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
H. Enter agent/broker phone number
I. Enter agent/broker fax number
J. Enter agent/broker name
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 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.
Q: Can you request a Termite Inspection or Treatment Reports?
A: Termite inspection reports are available by lender request if they were performed by the Asset Manager. The lender must submit request on lender letterhead to the appropriate Asset Manager Management Office.
A: No. HUD will only pay for termite treatment or repairs if required by the lender on an FHA loan. If, however, the buyer elects to change financing from FHA to a conventional or cash product, HUD will not pay for the termite work. If the buyer should switch financing to anything other than FHA, the buyer will have to reimburse HUD the costs of those repairs.
Q: Can you request the FHA “AS-IS” APPRAISAL?
A: Appraisals are available by lender request. To obtain an appraisal the lender must submit a request on lender letterhead to the appropriate Asset Manager’s Management Office.
Q: Can You request an EXTENSION to the Contract?
A: Most Asset Manager’s will grant an extension to close and each extension will be for a period of 15 days. The extension fee is $10.00 per day in 15 day intervals. The initial 15 day extension request will be provided to owner/occupant purchasers for a charge of: Submit the "Request For Extension of Closing Date" (Extension Request form) and all the required supporting documents to HUD's Closing Agent prior to the expiration of the sales contract, accompanied by documentation that indicates proper and timely loan application was made, the delay is not the fault of the purchaser, and that the mortgage approval is imminent.
Extension Requests requirements:
1. The request is submitted on the “Request for Extension of Closing Date” form to HUD’s closing agent prior to contract expiration.
2. Documentation with the extension request must reasonably establish the closing will succeed within the extension period.
3. The extension must be accompanied with certified funds in the appropriate amount and made payable to HUD. The fee is based on the Contract Sales Price:
4. The $150.00 extension fee will be held by the closing attorney. If the closing occurs prior to the end of the extension period, the unused prorated portion of the fee will be credited at closing.
5. Extension fees are not refundable and any extension approval does not obligate the Asset Manager to grant further extensions.
“Bid Cancellation Prior to Acceptance” – complete and fax to appropriate Asset Manager Management office.
“Bid Cancellation After Acceptance” - complete and fax to appropriate Asset Manager Management Office. This form must be signed by the purchaser.
Cancellation requests must be submitted if the contract has been ratified and the purchaser cannot close the transaction. Reason for the cancellation with supporting documents must be submitted. The purchaser MUST sign the cancellation form. Forfeiture of Earnest Money Deposits
The following provisions will be enforced in all instances except where HUD is unable to close the sale, in which case the entire deposit will be returned.
All HUD Property Disposition sales of HUD-acquired properties are to close within 45 days of acceptance of a HUD-9548 Sales Contract offer to purchase. The failure by a Purchaser to close on the sale of property within the allowable time period, including any extensions granted by HUD, will result in the forfeiture of the earnest money deposit, except where special circumstances exist and are documented and accepted by HUD.
· Uninsured Sales – The purchaser will forfeit 100% of the earnest money deposit for failure to close, regardless of reason.
· Insured Sales – The purchaser will forfeit 50% of the earnest money deposit for failure to close if purchaser is determined by HUD or Direct Endorsement underwriter to be an unacceptable buyer.
· The purchaser will forfeit 100% of the earnest money deposit if the sale fails to close for any other reason.
The purchaser will have 100% refund of the earnest money deposit under the following circumstances:
· There has been a death in the immediate family (contract holder, spouse, or children living in the same household);
· There has been a recent serious illness in the immediate family that has resulted in significant medical expenses or substantial loss of income, thus adversely affecting the purchaser’s financial ability to close the sale;
· There has been a loss of job by one of the primary breadwinners, or substantial loss of income through no fault of the purchaser;
· On an insured sale, HUD or a Direct Endorsement underwriter determines that the purchaser is not an acceptable borrower;
· On an uninsured sale, the purchaser was pre-approved for mortgage financing in an appropriate amount by a recognized mortgage lender and, despite good faith efforts, is unable to obtain mortgage financing. “Pre-approved” means a loan commitment has been obtained from a recognized mortgage lender for mortgage financing in a specific dollar
amount sufficient to purchase the property; and For other good cause, as determined by the HUD field office.
On an uninsured sale, the purchaser will forfeit 50% of the earnest money deposit where, despite good faith efforts by the purchaser, there is an inability to obtain a mortgage loan from a recognized mortgage lender.
On either type of sale, the purchaser will forfeit 100% of the earnest money deposit in those instances where no documentation is submitted, where the documentation fails to provide an acceptable cause for the buyer’s failure to close.
Please note these are only guidelines and are subject to change at any time and it is up to HUD and the Asset Manager to define the appropriate rules and guidelines.
Q: I would like to receive classroom training on the HUD HOME PROCESS?
A:Visit our Website for posted classes: ELAeducation.com. This course is available for 3 hours of CEU’s..
Utilities for an Appraisal
Q: Please clarify the process for utilities if buyer or appraiser needs to see systems working for loan?
A:You will have to notify the Asset Manager of this need so that they may contact the Field Service Manager and have the utilities turned on for the day and time of the appraisal.
Q: Can the Buyer turn on the utilities in their name?
A: The Buyer can turn the utilities on if they chose to, however they will not be reimbursed if they chose to do so. However they must contact the BLB.
Q: Who is HUD’s Closing Agent(Title Company)?
A: HUD’s closing Agent in Maryland is:
3355 St. John’s Lane, Elliot City, MD 21042
T: 410-480-2800 - F: 410-480-1065
A. Brokers must follow the advertising guidelines established by the Fair Housing Act. The Fair Housing Act prohibits discrimination in housing for any of the following reasons: Race or color, National origin, Religion, Gender, Familial status (including children under the age of 18 living with parents or legal custodians; pregnant women and people securing custody of children under 18) or Handicap (Disability). The Equal Housing Opportunity Logo must also be present on advertisements (to the extent required by law). In addition to the Fair Housing Guidelines, some additional rules apply: A broker may not advertise in such a way that would mislead buyers to believe they are the exclusive listing agent of the seller or affiliated with HUD or the Asset Manager; all advertisements should include a reference to HUD; business cards or flyers are not allowed to be placed in HUD properties; also, language such as "distressed home" is not allowable. If these rules are followed there usually will not be a problem advertising HUD homes.