Selling HUD Homes - A Review #1 - The Jeanne & Dan Team Real ...

If you have a buyer that wants to submit a bid on a?HUD Home, the bidding and the contract are both done online at?www.HUDHomeStore.com. ?Read my blog?Selling HUD Homes Part 5?to review the time lines for Insured (I)or(IE) and Uninsured(UI) properties so that you know when non-owner occupant investors can place a bid as there are limitations based on the type of property.

Once a bid is accepted, the Selling Broker must submit the full contract package and the EMD to the Asset Manager (AM) within 48 hours. The ?AM will then review the contract and execute on behalf of?HUD?and then forward along with?the EMD to the closing agent.

Examine the electronic bid carefully before submitting, you cannot make changes. Any differences between the electronic bid and the actual sales package sent to the AM may cause the bid to be canceled. Falsification of information will result in the cancellation of the bid. Remember, the electronic bid and actual package must be identical. I will go over the actual bidding process on?HUD Homes?in a future blog.

Here are some tips

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• If the bidding deadline is "daily", bids must be submitted by 11:59 PM EST. If a bid is accepted from the bids received that day, the results will be posted by 4:00 PM EST
• If the deadline is Friday, Saturday or Sunday bids will be reviewed on the next business day
• Non owner occupants may not bid on an Insured (I or IE) property until the 31st day. Owner occupants have priority.
• Non owner occupants may bid on an Uninsured(UI) property on the 6th day. In both instances, owner occupants still have priority.
• If you place a bid prior to the posting deadline, be aware that you could be placing a bid on a property that may have an accepted bid. It is best to wait until after the posting deadline.

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There is no limit to the number of buyers an agent can submit bids for.

An owner occupant buyer can submit more than one bid however

"If a purchaser submits multiple bids on the same property, only the bid producing the highest net return to HUD will be considered. If a prospective owner occupant purchaser submits a bid on more than one property, the bid that produces the greatest net return to HUD will be accepted and all other bids from that purchaser will be eliminated from consideration. However, if the prospective owner occupant purchaser has submitted the only acceptable bid on another property, then that bid must be accepted and all other bids from that purchaser on any other properties will be eliminated from consideration."?Code of Federal Regulation 24 C.F.R. 291.205

In the case of a non-owner occupant, there are no restrictions on the number of bids or?HUD Homeproperties they can purchase.

If more than one offer is received, the bids will be ranked in the order of the highest net to?HUD. You may include on the sales contract that your buyer would like to remain in a back up position and will be notified if they are the second back up. If the primary bid cancels, the back up will be given the opportunity to move to primary position. Once notified, the contract package must be sent within 48 hours, but do not send unless notified.

COUNTER OFFERS

The AMs will look at all the bids. If no bid is considered to be acceptable, but may be in an acceptable range, the AM may email the bidders and set the status at accepting counters, and request the submission of another bid.?HUD?will make the same counter offer to all bidders. The highest and best bid may then be accepted.

CANCELING A BID

A bid may be canceled online up until the time that the AM has accepted the bid and received and accepted the contract. Once that point is passed, the selling broker must contact the AM and the closing agent if the buyer is not going to settle on the?HUD Home?and request the EMD return in writing with?reasons for the not going to settlement. It is at the sole discretion of HUD to return the EMD.

Subscribe to my blog to follow the?Selling HUD Homes?series. We are learning the new HUD procedures as many of you are, but as a HUD listing broker, we are required to provide training and help with the sales of HUD Homes. We provide training in our office and in places like this AR blog. There are still some growing pains, and not all AMs follow exactly the same procedures with their properties. But they are getting their systems in place and are doing a good job for the most part.?

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Source: http://www.wvrealestatepros.com/Blog/Selling-HUD-Homes-A-Review-1

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