One hour sshh pin

1
©2011 FirstPreston HT. This document includes data that shall not be duplicated, used or disclosed - in whole or in part -
for any purpose other than to evaluate the information in this document .

Section 1
• Intro to M&M III
• HOC Regions
• Broker Registration

2

HUD Basics

• HUD has awarded contracts to several
companies to serve as Asset Managers
(AM) and other firms to serve as Field
Service Managers (FSM).
– FSMs are responsible for property
maintenance and preservation and getting the
properties ready for market
– AMs are responsible for the marketing, sale
and closing of the HUD homes
3

HUD Basics

• The purpose of the structure is to:
– Increase the effectiveness of HUD’s asset
disposition program
– Foster competition among the contractors
thereby improving responsiveness, reducing
risk and increasing net returns to the agency

4

Home Ownership Centers (HOCs)

Home Ownership Center Location
5

Atlanta HOC Regions

6

Denver HOC Regions

7

Philly HOC Regions

8

Santa Ana HOC Regions

9

Broker Registration

10

NAID Number
• What is it?
– Name Address Identification Number
– Assigned to the Broker of Record for the agency
– Must have a NAID number to place offers on a HUD
home
• Do I have one?
– Only Issued to the Broker Of Record
– Check www.HUDHomeStore.com
• How can I get one?
– Go to www.HUDHomeStore.com

11

NAID Registration
Selling Brokers, Nonprofits, or Government Agencies

• You can make an offer on a HUD Home only if
you have a HUD Name Address Identifier
(NAID).
– To apply for a NAID complete forms – send to HUD
– To change the information that displays on "Find a
Broker" search page, complete these same forms -
submit to HUD
– Complete forms - send to the HUD office for your
area

12

NAID Registration
Click on
NAID Registration

13

Registering on HUDHomeStore.com

Principal Broker Instructions
• Prior to registering as a broker or seller on HUD’s listing
site, a NAID must be obtained from HUD
• Once a NAID has been obtained, principal broker must
register as such using the NAID given
• Principal Broker registers before any of their agents or
brokers
• Agents and associate brokers of same company register
after the principal has been established, using the same
NAID

14

Principal Broker User
• Go to HUDHomestore.com
• Click on “Bidder” Link

15

Selling Agent User

• Selling Agents and Associate Brokers of the
same company must register after the
Principal has been established, using the
same NAID
• Selling Agents will follow the same process
as the Principal Broker to register for their
Selling Agent account

16

Section 2
• Bidding Time Line
• Brokers/Agents
• Submitting an Offer

17

Bidding Time Line

18

Exclusive “Owner Occupant” Period
*Must Live in the House for 12 Months / *May Not Purchase as O/O for 24 months

• Properties eligible for FHA financing (IN or IE)
– A 30 day exclusive listing period for Insurable and
Insurable with Escrow properties.
– There is a 10 day bid period (within the initial 30 days)
for all bids to be received. If no offers are
accepted, bids are reviewed daily (up to 20 days) for
owner occupant purchasers only.
– If there are no acceptable offers, bids are opened daily
for all purchasers.

19

Exclusive “Owner Occupant” Period
*Must Live in the House for 12 Months / *May Not Purchase as O/O for 24 months

• Properties not eligible for FHA 203B financing (UI)
– For uninsurable properties there is a five day exclusive
Owner Occupant period.
– After the five day exclusive bid period, bidding is open
to all purchasers on a daily basis (if an acceptable
owner occupant offer was not received).

Before going to General Bidding – all IN/IE properties located in revitalization
areas, and some UI properties are offered in a special 7 day lottery bidding
period

20

Real Estate Agents and Brokers

21

Listing Brokers
•LB’s are subcontracted by the AM’s and are responsible for
listing and marketing HUD properties and serve as the “eyes and
ears” for the AM’s

•Among other things, LB’s will place properties in the MLS and
provide signage on each HUD listing

•Commissions are determined by the AM, with a maximum total
of 6%

•If you are interested in becoming a Listing Broker you must
contact the Asset Manager in your region to receive
information, as this is not a function of HUD.

22

Selling Brokers
•A selling broker may earn up to 3% commission, but may also
choose to reduce their commission to increase the net to HUD

•Commission checks are made out to the brokers name and
address as it is registered

•Selling brokers are responsible for understanding HUD contracts
and the entire HUD sale process. You must be able to properly
inform and assist your buyer throughout the entire transaction

23

Commissions
• Brokerage commissions
• Maximum of 6% Commission
• Listing Broker Commission is 3%
• Selling Broker Commission is up to 3% (negotiable
between Selling Agent/Broker and Buyer
• “Hard to Sell” Commission
• If a property is designated as a “hard to sell” property,
a minimum commission is put in place
• Fixed $1,250 Listing Broker Commission
• Maximum $1,250 selling broker commission (selling
broker can reduce their commission)

24

Submitting an Offer

25

Go to www.HUD.gov/HUDHomes

26

Bidding on a Property
• Click on
“Addendums”

• Access/Download
– Contract Package
– Welcome Home Flyer
– PCR
– LBP (Homes built prior to 1978)
– Property Condition Summary
27

• Select Submit an Offer

28

• Select NAID Type

29

• Enter NAID
Number
• Enter Real Estate
License Number
• Enter Security
Code
• Click “Verify
NAID” Button

NOTE: The License must be for the same state in which property is located
30

Section Three
• Home Inspections
• Earnest Money

31

Home Inspections

32

Should Buyers Get Home Inspections?

• All HUD homes are sold “As-Is”
• HUD does not warrant the condition of its
properties and will not pay for the
correction of defects or repairs
• Since the new owner is responsible for
making needed repairs, HUD strongly urges
a professional inspection once the contract
has been executed by the seller
33

Inspection Process
 Takes place after the sales contract has been executed
 Selling agent completes inspection request form (which is sent
along with a copy of the executed contract)
 Submits it to the appropriate FSM office
 Selling Agent works with the FSM to obtain permission to for
utilities to be activated and submits deposit and/or re-
winterization fees. Coordinate with FSM for collection of these
deposits, utilities and other timing issues.
 The FSM only allows utilities to be activated if the property
does not require repairs to activate utilities and it is safe to do
so
 HUD will not pay for repairs indicated in the inspection - buyer
is strictly prohibited from making repairs on the property until
after closing

34

Earnest Money

35

Earnest Money
May vary from AM to AM
• Earnest Money Deposit - Made Payable to HUD
May vary from AM to AM
– $500 for $50,000 or Less (certified funds only)
– $1000 for $50,001 or More (certified funds only)
 If Contract and Earnest Money is not received within 2
business days offer my be cancelled and back-up bidder
may be notified or the property may be re-listed on the
market.
 Earnest Money MUST be sent with the contract package to
the appropriate Asset Manager office location

36

Section Four
• Successful Closing

37

Extension Requests

38

Extension Requirements
• Extensions of Escrow Due Date
– Time to close is 20 - 30 days for cash and 30-45 days for
any financing (depending on HOC area)
– File Extension with Closing Agent
– Submit Extension Request Form, Fees and letter from
the Lender
Sales Price Extension Fee

$25,000 or less $150 ($10.00/day)

$25,001 - $50,000 $225 ($15.00/day)

Over $50,000 $375 ($25.00/day)

39

Next Steps to Closing
 Ratified Contract
• Signed contract sent to Closing and Selling Agents
• HomeTelos forwards earnest money to Closing Agent
• Selling Agent receives appraisal and Closing Agent
contact information

• Provide the Lender with a copy of the ratified contract

• Order the buyer’s title policy

• Request Home Inspection

40

Additional Resources
•The bidding site
(www.hud.gov/hudhomes)
has a wide variety of
frequently asked questions
and has also recently
updated the site to add
training videos.
•Brokers can access these
videos by pressing the FAQ
link at the far right of the
menu bar at the top of the
web site’s home page.
All offers are
submitted through
HUDs web site, not the
individual AM web
sites. 41

One hour sshh pin

Recomendados

Recomendados

Más contenido relacionado

Más de Jacob Navas

Más de Jacob Navas (20)

Último

Último (20)

One hour sshh pin