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HUD Homes are sold "As Is"
without warranty.
Irregularities in bids:
HUD reserves the right to waive any irregularity in
any bid, reject any and all offers, and to withdraw
a property at anytime.
Code and Zoning violations:
Brokers should advise Purchasers that the properties
may contain code and/or zoning violations. Our contract
requires us to identify code violations in the Property
Condition Report.
Property Condition:
No guaranties and/or warranties are made. No repairs
will be performed by HUD after closing. HMBI will
ensure that prior to execution of a sales contract,
all available property condition information will
be disclosed in the property condition report and
environmental compliance record. Purchasers are encouraged
to have the properties inspected by a qualified home
inspection service company to satisfy themselves as
to the condition of the property. Purchasers
have 15 calendar days from the date of the Purchaser's
signature on the sales contract to conduct, at the
purchaser's expense, any inspections, test or risk
assessments desired by the Purchaser.
Potential Purchasers:
Contact a HUD Approved Broker to visit listed homes
or to make an offer.
HUD will pay selective closing costs up to 3% of the
purchase price, If the closing costs are included
in the bid and inserted on the appropriate line of
the sales contract. Click
here to view HUD Notice H-2006-12 explaining which
closing costs are allowable and the maximum amount
in your appropriate state.
You may obtain a copy of the "buyer's kit"
on the Internet at
http://www.hud.gov/buying
IN - Insured:
All properties listed as "INSURED" are eligible
for FHA financing. These properties are eligible for
insurance under Section 203(b) of the National Housing
Act. An interest rate will be charged on the loan
and is negotiable between the purchaser and lender.
The mortgage may include some mortgage insurance payments.
The originating lender is responsible for making final
determination whether a property meets Minimum Property
Standards and, consequently, is eligible for FHA insurance.
IE - Insured with Escrow Repairs:
Properties listed as "Insurable with Repair Escrow" are eligible
for an FHA 203(b) insured loan. The lender making the new FHA 203(b) loan
establishes an escrow for the amount of the repairs which includes a 10%
contingency, not to exceed $5,500. The identified repairs are required to
meet FHA's "minimum property standard" (MPS) and the total repair
costs should be equal to or less than $5,000. If a 203(b) FHA insured loan
is used for financing, the repair escrow must be used for the needed work
specified in the listing.
Repairs must be accomplished within 90 days of closing and be monitored
byan FHA lender. The lender will
inspect work as it is completed on the
house and distribute the repair monies as appropriate within ninety (90) days
of closing. The costs of repairs are included in the loan amount and repaid by
the borrower as part of the monthly payment. Any funds in the escrow account
not used for the repairs will be applied to reduce the unpaid principal balance
of the loan. The escrow does not apply if the buyer is not utilizing FHA
loan financing.
UI - Uninsured:
Properties listed as "UNINSURED" means that
certain repairs and or improvements are required to
be eligible for an FHA 203(k) mortgage. The required
repairs on most of these properties exceed $5000.00.
Purchasers of these properties have the option to
purchase "as-is" with cash or conventional
financing. These properties maybe eligible for a FHA
203(k) mortgage if the required repairs and or the
improvements are completed in accordance with FHA
guidelines. Ask a FHA lender for more details.
HMBI will prepare a property condition
report for each property. Prior to completing a property
appraisal HMBI will prepare and provide to the appraiser
a comprehensive property condition report that provides
potential purchasers with any information known to
HMBI that may affect the habitability, functionality
or value of the property, including but not limited
to: the functionality of all heating, cooling, plumbing,
gas and electrical systems and appliances; outstanding
code violations, pending litigation, demolition orders,
other legal actions that may impact the property or
violations of Homeowner's Association covenants that
are known to HMBI and that will not be resolved prior
to closing; condition of the septic system or well;
existing transferable warranties; copies of Homeowner's
Association documents; the Environmental Compliance
Record, the lead based paint disclosure, and the mold
disclosure. The completed Property Condition Report
will be posted in the property file on EMS and will
be made available to prospective purchasers through
the Internet Property Listing.
New listings are available weekly
on Friday mornings.
During the Initial listing period, bids may be submitted
by Owner Occupants only during the first 10 calendar
days.
Owner Occupant Priority Period.
All Owner-Occupant offers received during this 10
day Exclusive Listing, shall be considered to have
been received simultaneously. In order to be
valid for the period, bids must be completed and confirmed
on the Internet.
Owner-Occupant bids will be opened and reviewed and
the highest acceptable net bid to HUD will be selected.
Bids will be reviewed and posted at 1:00 p.m at the
conclusion of the 10
day Exclusive listing period.
General Public Bid Period.
At the conclusion of the 10-day Exclusive Listing
Priority Period, all general public bids will be accepted.
These bids will be reviewed and the highest acceptable
net bid to HUD will be selected.
In the event the property remains unsold after these
bid openings, daily bids received by 11:59 p.m. will
be reviewed and results will be posted the next day
at 1:00 p.m.
Bids received on the same day shall
be considered to have been received simultaneously.
Friday, Saturday and Sunday bids will be reviewed
simultaneously on Mondays at 1:00 p.m., and the highest
acceptable net bid to HUD will be selected.
In the event the property remains
unsold, the bids (Owner-Occupant and General Public)
will be reviewed and posted daily at 1:00 p.m. and
the highest acceptable net to HUD bid shall be selected.
This listing will remain in effect until the listing
has been sold or withdrawn from the market to be reanalyzed.
Bids must be completed and confirmed on the Internet
before 11:59 p.m. in order to be valid for that day
and will be opened the next day excluding Friday,
Saturday and Sunday which will be opened on Monday.
Brokers must submit bids through Internet bidding
at this web site.
Sales Contract Submission
Brokers are required to review bid
announcements to verify if their offer was the selected
offer. Brokers must submit the original HUD Sales
Contract Form 9548 (1/99) along with all necessary
addenda within 48 hours after the announcements are
posted. Submit documents to:
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For
North Carolina and South Carolina
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HMBI
c/o Bid Administrator
5350 77 Center Drive, Suite 200
Charlotte, NC 28217
Office: (704) 522-3590
Toll-free (866) 337-HMBI (4624)
Fax: (704) 565-6852
E-mail: Charlotte
Regional Office
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For
Virginia and West Virginia
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HMBI
c/o Bid Administrator
1916 Wilson Blvd.,Suite 304
Arlington, VA 22201
Office: (703) 465-1704
Toll-free (866) 543-3207
Fax: (703) 465-1931
E-mail:
Arlington
Regional Office
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For
Illinois and Indiana
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HMBI
c/o Bid Administrator
8600 W. Bryn Mawr Avenue,
Suite 600 South
Chicago, IL 60631
Office: (773) 714-9200
Toll-free
: (866) 702-6600
Fax: (773) 714-1669
E-mail:
Chicago Regional Office
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For
Alaska, Idaho, Oregon, and Washington
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HMBI
c/o Bid Administrator
Centerpoint Corporate Park
20829 72nd Ave. South, Suite 115
Kent, WA 98032
Office: (253) 867-2800
Toll-free: (866) 317-HMBI (4624)
Fax: (253) 867-2785
E-mail:
Seattle Regional Office
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To be acceptable, hard copies must
contain no errors.
REMINDER: Brokers must
check the web site on a daily basis for available
properties and bid announcements. If your bid
is selected, a completed contract (with the required
Addenda) must be in our office within the next 48
hours of Bid Result Publication or it will be considered
canceled and the second highest acceptable net bid
to HUD will be selected.
If multiple bids are submitted on
the same property on behalf of the same purchaser,
only the bid producing the highest net return to HUD
will be considered.
| Multiple Bids
on different properties by same owner-occupant
purchaser |
Go Back To Index |
HUD allows an owner-occupant to purchase
only one property. If a prospective owner-occupant
purchaser submits bids on more than one property,
the bid will be considered in the following sequence:
- If the prospective owner-occupant
purchasers bid is the only acceptable bid on one
of the properties, then that bid will be the only
one considered.
- If not, the bid that produces the
greatest net return to HUD will be considered and
all other bids submitted by that prospective purchaser
will be eliminated from consideration.
If your bid is selected, a completed
contract (with the required Addenda) must be in our
office within the next 48 hours of Bid Results Publication
or it will be considered canceled and the second highest
acceptable net bid to HUD will be selected
To ensure that you submit an acceptable Sales Contract,
please take a moment and ensure that the following
are correct:
- Where Real Estate agent signatures
and/or initials are required, only the broker signs
the contract and initials other documents.
- The purchaser must sign the radon,
gas and mold form and lead-based paint
addendum.
- It is MANDATORY that the earnest
money be a cashier's check or money order
ONLY - no personal checks
- Line 9 of the Sales Contract must
reflect 45 days.
- The "other addendum"
box on line 11 of the Sales Contract must be checked
- All purchasers must initial line
12 of the Sales Contract
- Line 6b of the Sales Contract is
left blank.
SALES CONTRACT and REQUIRED ADDENDA:
Click here
to download required forms, Lead Based Paint Addendum,
Certification of Owner-Occupant, Radon Gas and Mold
Notice of Release Agreement and other forms.
To obtain an original HUD Sales Contract
Form 9548 Revision (1/99):
Certification of Owner-Occupant
Status: All bids by owner-occupants, who
are purchasing properties listed in the owner-occupant
category, must include an Owner-Occupant Certification.
Sanctions will be immediately imposed upon Brokers,
Agents and Investors found to
be abusing the system.
Flood Insurance Notification - The purchaser
shall provide the Closing Agent proof of flood insurance
as a condition of closing for all improved properties
located in a special flood hazard area where flood
insurance
is available through the National Flood Hazard Insurance
Program, even if it is not required by the Purchaser's
lender, if any. This requirement does not apply to
vacant
lots, properties sold to ACA partners that are scheduled
for demolition or properties sold without any type
of
Federal Assistance including, but not limited to discounts,
Purchase Money Mortgage's sales
incentives and closing cost assistance.
You
may withdraw an electronic bid by downloading our
Electronic Cancellation
Form, completing the form and sending
via e-mail or fax to the appropriate regional
office, no later than 10:00 a.m. on bid opening day.
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For
North Carolina and South Carolina
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HMBI
c/o Bid Administrator
5350 77 Center Drive, Suite 200
Charlotte, NC 28217
Office: (704) 522-3590
Toll-free (866) 337-HMBI (4624)
Fax: (704) 565-6852
E-mail: Charlotte
Regional Office
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For
Virginia and West Virginia
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HMBI
c/o Bid Administrator
1916 Wilson Blvd., Suite 304
Arlington, VA 22201
Office: (703) 465-1704
Toll-free (866) 543-3207
Fax: (703) 465-1931
E-mail:
Arlington
Regional Office
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For
Illinois and Indiana
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HMBI
c/o Bid Administrator
8600 W. Bryn Mawr Avenue,
Suite 600 South
Chicago, IL 60631
Office: (773) 714-9200
Toll-free
: (866) 702-6600
Fax: (773) 714-1669
E-mail:
Chicago Regional Office
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For
Alaska, Idaho, Oregon, and Washington
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HMBI
c/o Bid Administrator
Centerpoint Corporate Park
20829 72nd Ave. South, Suite 115
Kent, WA 98032
Office: (253) 867-2800
Toll-free: (866) 317-HMBI (4624)
Fax: (253) 867-2785
E-mail:
Seattle Regional Office
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The message must include:
- Broker's Name
- Tax ID Number or SSN
- Agent's name and telephone number
- Reason for cancellation
- Key information concerning the
bid:
- Case Number
- Address
- Bid Confirmation Number
Properties that are listed during
the Exclusive and Extended Listing Periods may be
eligible for counter offers. If after fifteen (15)
calendar days of the 30 day Initial Listing Period
we have not received an acceptable offer, we may extend
a counteroffer if the original offer meets certain
criteria approved by HUD. We will notify the
selling agent or broker in writing of the predetermined
net price that would be acceptable.
We will post the counteroffer and
the period for resubmitting bids on the website. Brokers
will be required to resubmit a second bid online that
meets or exceeds the requirement. We will review all
counter offers in conjunction with the competitive
bids submitted prior to the bid deadline We will accept
the bid producing the highest acceptable net to HUD
and post the acceptable offer in the bid results.
Owner Occupants Only:
3% Minimum Down payment for FHA financed
properties.
Maximum mortgage amount 97% of the appraised
value
or sales price whichever is lower.
Investors:
1 unit: 25% Minimum Down payment,
for FHA financed properties;
2 to
4 units: 15% Minimum Down payment, for FHA
financed properties.
HUD requires all bids received during
the Exclusive or Extended Listing Periods be backed
by earnest money in the form of certified funds (Cashiers
Check, Official Bank Check, or Money Order only).
No later
than seventy-two (72) hours following receipt
of a signed sales contract, the Selling Broker
may be required
to deliver the funds to HUD's Closing Agent in accordance
with local customs.
Required Earnest Money: The
Selling Broker will forward
the
Earnest Money to the Closing Agent after contract
execution.
Brokers in IL, IN, NC, SC, VA and WV will hold
the money in their Trust Account.
Earnest money
deposits
must be provided in one the following methods:
Cashiers Check, Official Bank Check, or Money
Order
only with no termination date or cancellation provision,
payable to both HUD and the buyer by utilizing
the
word "or" within it. For example, "HUD
or Jane Doe".
The exceptions are:
- Alaska: Earnest Money payment should be made
payable to STEWART TITLE
- North Carolina and South Carolina:
earnest money should be made payable to HUD's Closing
Agent or the Selling Broker
Required
Earnest Money Amount:
- $1,000 for offers greater than
$50,000; (not to exceed $2000)
- $500
for offers $50,000 or less,
- 50% of the Listing Price for Vacant
Lots
The following provisions are applicable
in all instances except those where HUD is unable
or unwilling to close the sale, in which case the
entire amount will be returned.
Investor Purchasers:
- Uninsured Sales: 100% of the deposit
will be forfeited to HUD for failure to close, regardless
of the reason.
- Insured Sales:
- 50% of the deposit will be forfeited
to HUD for failure to close if the purchaser is
determined by HUD to be an unacceptable buyer.
- 100% of the deposit will be forfeited
to HUD if the sale fails to close for any other
reason.
Owner-occupant Purchasers:
Return 100% of the deposit when:
- There has been a death in the
immediate family (purchaser, 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 a substantial
loss of income through no fault of the purchaser.
- For an FHA insured sale, HUD
(or a D.E. underwriter) determines that the purchaser
is not an acceptable borrower. For an uninsured
sale, the purchaser was pre-approved for mortgage
financing in an appropriate amount by a recognized
lender and, despite good faith efforts, is unable
to obtain mortgage financing. "Pre-approved"
means a commitment has been obtained from a recognized
mortgage lender for mortgage financing in a specified
dollar amount sufficient to purchase the property.
- There is other equally good cause,
as determined by HMBI, in keeping with the spirit
and intent of the above policy.
Return 50% of the deposit when:
For an uninsured sale, despite good
faith efforts by the purchaser, there is an inability
to obtain a mortgage loan from a recognized mortgage
lender.
Forfeit 100% of the deposit when:
- No documentation is submitted.
- Documentation fails to provide
an acceptable cause for the buyer's failure to
close.
- Documentation is not received
by HMBI no later than close of business on the
tenth (10th) day following cancellation of the
contract.
Vacant Lot Sales:
The purchaser is considered
to be an investor and instructions pertaining to
investors will apply.
HMBI will provide, at no charge, one
copy of the appraisal to the winning bidder for use
in obtaining a mortgage loan. If, for any reason,
the winning bidder's lender requires a new or updated
appraisal report, the cost of that report will be
the responsibility of the winning bidder. However,
the lender for a winning bidder obtaining any type
of FHA insured financing report except a 203(k) rehabilitation
mortgage must use the Contractor provided FHA appraisal
report unless the report is more than six (6) months
old on the date the sales contract is executed.
For Sales Contracts executed before
October 12, 2006, HUD
pays certain Closing Costs up to 5% of the purchase
price, IF the
closing costs are included in the bid and inserted
on line 5 of the sales contract.
HUD does not pay a buyer's
closing costs or real estate broker fees on the purchase
of property through the OND/TND program.
HUD has issued Notice H-2006-12 in replacement of
Notice H-2005-12: For all contracts executed
on or after October 12, 2006, HUD will pay up
to (and may not to exceed) 3% of all closing
costs considered to be reasonable and customary
in the jurisdiction where the property is located.
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%) allowance, HUD will reimburse
loan origination fees up to one 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. Click
here to review HUD Notice H-2006-12.
All
purchasers must close on or before forty five (45)
days of contract acceptance date for all bids submitted.
Closing Extension Request:
If the closing is not expected to occur on or before
the specified time on line 9 of the HUD Sales Contract
9548, the Broker must forward a written extension
request to HUD's closing agent prior to the expiration
of the time specified on the sales contract.
HMBI, as HUD's Representative, may grant an extension
of closing time and, if approved, extension's will
be granted for a period of fifteen (15) days:
- Documentation submitted with the
extension request must establish that a closing
can reasonably be expected to occur within the extension
period.
- The extension request must be accompanied
by a cashier's check, money order or other certified
funds in the appropriate amount and made payable
to HUD. The fee is based on the Contract Sales Price:
| Contract Sales Price equal to or less than $25,000
Extension fee is $10 per day ($150) |
| Contract Sales Price of $25,001 to $50,000 Extension
fee is $15 per day ($225) |
| Contract Sales Price over $50,000 Extension fee
is $25 per day ($375) |
- The initial 15-day extension will
be provided for owner occupant purchasers, at no
cost, if documentation is provided indicating that
proper and timely loan application was made, that
the delayed closing is not the fault of the purchaser
and that mortgage approval is imminent.
- The extension fee will be retained
by HUD. In the event that the purchaser closes
prior to the end of the extension period, the unused,
prorated portion of the extension fee will be credited
to the amount due at closing.
- The
approval of an extension does not obligate HMBI,
as HUD's Representative, to grant future extensions.
Broker Registration and NAID Number:
You must be a HUD Approved Broker and have a valid
NAID Number (previously supplied by HUD) before performing
Electronic Bidding.
If the Selling Broker is not a HUD
Approved Broker and wants to submit an electronic
bid, you will need to complete Forms SAMS 1111
and
SAMS 1111-A and return them with original signatures
to the appropriate HMBI
before an electronic bid can be made. Click
here to access these forms.
Additional Requirements:
- Broker's License
- W-9
- SSN or Tax ID number - If using
a SSN, a copy of the signed Social Security
card
and a copy of your drivers license is
required. If using a tax identification
number, verification
of tax identification number is required
from an IRS document.
All Broker Registration requests should
be sent to:
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For
North Carolina and South Carolina
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HMBI
c/o Broker Administrator
5350 77 Center Drive, Suite 200
Charlotte, NC 28217
Office: (704) 522-3590
Toll-free (866) 337-HMBI (4624)
Fax: (704) 565-6852
E-mail: Charlotte
Regional Office
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For
Virginia and West Virginia
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HMBI
c/o Broker Administrator
1916 Wilson Blvd., Suite 304
Arlington, VA 22201
Office: (703) 465-1704
Toll-free (866) 543-3207
Fax: (703) 465-1931
E-mail:
Arlington
Regional Office
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For
Illinois and Indiana
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HMBI
c/o Broker Administrator
8600 W. Bryn Mawr Avenue,
Suite 600 South
Chicago, IL 60631
Office: (773) 714-9200
Toll-free
: (866) 702-6600
Fax: (773) 714-1669
E-mail:
Chicago Regional Office
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For
Alaska, Idaho, Oregon, and Washington
|
|
HMBI
c/o Broker Administrator
Centerpoint Corporate Park
20829 72nd Ave. South, Suite 115
Kent, WA 98032
Office: (253) 867-2800
Toll-free: (866) 317-HMBI (4624)
Fax: (253) 867-2785
E-mail:
Seattle Regional Office
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Broker Commission: Up
to 5% commission of the purchase price to the Selling
Broker, IF the commission is included
in the bid and inserted on line 6a. Of the HUD sales
contract Form 9548 (1/99).
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