When the property does not appear on HUDHomestore when entering the case number, and it still shows active on the MLS/BLC or at WilmothGroup.com, it means HUD has closed bidding in order to accept a bid and try to bring it under contract. We have not been informed to change the status in the MLS/BLC or WilmothGroup.com because the home is not under contract. HUD has simply decided to close bidding. The way you can confirm this is to click on the Property Contacts tab and enter the case number. You will see that the case number is correct, and the contact information is still posted for access by the public who may have a problem or the selling agent for their reference.

Because the property is not officially contracted, these often reappear on HUDHomestore for more bids. We suggest monitoring HUDHomestore daily while watching the status on the listing services and our site. When the status changes to pending, you will know the home has officially been placed under contract.

Visit Pemco's website at HUDPemco.com and click on the "Forms" tab. Then select the appropriate region (Indiana-1A, Florida-2A). While you are at their site take a look around and learn even more about Pemco HUD homes!

One of the most commonly asked questions and the black and white answer is that HUD Homes are sold as-is and buyers need to be diligent when preparing their offers. When submitting a contract package, there is a document that the buyer will execute call the Forfeiture Addendum. This document does lay out the terms of return of earnest money. These terms do vary from an owner-occupant purchaser to an investor. There is also condition (vi) that states earnest money could be returned "for other good cause, as determined by HUD". Most of the questions I receive on this issue as it relates to an inspection will fall under this condition. So, buyers should be prepared that there is not a inspection contingency as would be the case with many other types of purchases, and the buyer will be executing this document stating they understand that to be the case.

As a selling agent, you must work under a Broker who has obtianed (and annually renewed) a HUD Name Address Identifier (NAID). First ask your broker for their NAID as it will be required to enter your offer at HUDHomeStore.com. Confirm that your Broker has renewed their NAID in the last year.

If you are a real estate primary broker and do not have a NAID, here is the link to the forms required and where to return them. Please be careful to include all the attachments required on page 2 of the SAMS 1111 under the column labeled SB.

Please be advised it can take 3-4 weeks to obtain a new NAID number or to have a renewal activated if a year has passed. For this reason, Wilmoth Group offers a referral program to brokers who do not have a NAID number but do have a client wishing to make an offer on a HUD home. Please send an email to joel@wilmothgroup.com for more details.

Each property on HUDHomeStore.com will contain, with the listing, the documents each Asset Manager is utilizing. Click on the Addendum tab and save the contract package appropriate for your buyer. Be sure and do this prior to submitting your offer as this information will no longer be readily available at HUDHomeStore.com once your bid is accepted.

If you forget to obtain these documents, and the property is no longer showing, click on the Property Contacts tab of HUDHomeStore.com. Enter your Case Number or street address. Note the Asset Manager listed and visit their website. Most of the Asset Management companies are posting their contract document packages also on their sites.

If you are considering purchasing a HUD home, or if you are a Realtor representing a buyer of any kind, you need to know about the special HUD programs. These programs encourage the development of communities as the home owned by HUD is offered for sale. The "special HUD programs" link above will provide you the knowledge you need to understand if you or your buyer qualify.

Good Neighbor Next Door (GNND) is a program that allows law enforcement officers, teachers, firefighters and emergency medical technicians the opportunity to purchase a HUD home for 50% of the HUD appraised value. They are sold prior to placing the home on the market through a Lottery process at HUDHomestore.com.

For more information on GNND click here.

These three codes are offered to help provide information to allow a sellers agent or buyer to assess the type of financing available for a listed property. The simplest thing to remember is that these three codes are showing eligibility for FHA 203 (b) financing. The FHA 203 (B) is a program for repairs less than $5,000 where an escrow is created at closing to complete the repairs.

IN (Insurable)- the property meets the FHA financing requirements and no obvious repairs are needed to insure an FHA loan to a buyer.

IE (Insurable with Escrow)- these properties are eligible for the FHA 203(b) program with needed repairs of less than $5,000 are required to meet Minimum Property Standards for an FHA mortgage. These properties can qualify for FHA Section 203(b) mortgages if the purchaser and lender establish a repair escrow at the closing for the completion of repairs within 90-days of the closing. This is not a gift from HUD. The sales price remains the same and is added to the mortgage. No repairs prior to closing.

UI (Uninsurable)- a property that requires extensive repairs after the closing and is not eligible for FHA mortgage insurance. 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 are also eligible for an FHA 203(k) mortgage if the required repairs and or the improvements are completed within 90-days of the closing.

HUD commissions/sales fee to the selling agent will autopopulate on the sales contract at the rate offered by HUD. In general this rate will be 3%. Certain properties are designated "hard to sell" properties by HUD and these will have a base $1250 payment that will autopopulate on your bid. In general, these are likely homes listed for less than $42,000 or contain other issues. There is not a specific written policy for when the $1250 will apply. Here is a post from our blog to help you identify these "hard to sell" properties.

The selling agent can always accept less in a sales fee payment. Whatever amount you enter on your bid, the selling agent compensation will affect the net amount of the bid.

In areas where winterization is required, all homes will not be able to complete a home inspection without a de-winterization being completed. It will be important that the request to complete a home inspection also note that the home will need to be de-winterized. This request will also go to the Field Services Manager (FSM) noted on the Contacts tab for each property on HUDHomeStore.com.

Each FSM will have their own procedures but prepare your buyer for a request by the FSM for cash up front to pay for the de-winterization and re-winterization process. The amount to be charged will be set by each FSM so you will have to check with them first. Buyers WILL NOT be allowed to provide their own de/re winterization contractors.

It means your offer was not accepted. From this point you need to see if the property has received another accepted offer or if none of the offers received were acceptable and a new bidding period has started.

Is the property still listed on HUDHomeStore.com? If so no offers were accepted and if your buyer desires to resubmit their offer, a new bid will need to be prepared.

If the property is not on HUDHomeStore.com it most likely has a "provisionally" accepted offer. This means the terms have been accepted and the contract fullfillment is taking place. We will also show these properties as pending in the MLS/BLC and WilmothGroup.com. As long as the contract process is proceeding satisfactorily and within terms, the property will not show back up on HUDHomeStore.com. If the contract is not completed, we will change the status on the MLS/BLC and WilmothGroup.com and the property will re-appear at HUDHomeStore.com.

A suggestion if you wish to track this. Sign up for an email update of the status of the property at WilmothGroup.com.

Twelve months and they will have to sign, along with selling agent, a Certification that they will live in the home for 12 months and have not purchased another HUD home for the last 24 months.

At www.HUDHomestore.com there is a link to Property Contacts in the header part of the site. Click on this link and enter the case number or street address. The contacts list tab from the original listing will appear.

If your buyer does not have a Social Security number, they will need to have a Taxpayer Identification Number (TIN). These are commonly applied for and issued to non-US citizens who have business or personal interests in the United States that would require paying taxes. The Selling Agent will need to enter the TIN in the same format as a Social Security Number would appear (xxx-xx-xxxx). If they win the bid, the bidder will be required to provide a copy of the letter issued by the United States government assigning them the TIN with the rest of the contract package.

Please have your buyer obtain an escrow check with the following suggested procedure.

Earnest money (escrow) checks are $500 if the contract price is under $50,000. $1000 for $50,000 and over. Made payable to HUD and submitted with your contract package if your bid is accepted.

Escrow checks are supposed to be in the agent's hands when agent submits a bid. These checks need to be in the form of a cashiers or certified funds.

Have your buyer obtain such a check and make it payable to themselves. The check needs to be in the agent's possession at the time a bid is submitted.

If a bid is accepted, have buyer endorse the check to HUD. It will be returned to the Asset Manager. The Asset Manager is listed with the Property Contacts. Escrow checks, in certifed or cashiers check format ultimately must be made payable to HUD.

By making the check payable to the buyer, it will be easy for them to re-deposit the funds if their bid is not accepted.

If it’s on HUDHomeStore.com it should be in the MLS/BLC Exceptions: The Lottery round open to Good Neighbor Next Door (GNND), or a non-profit, government Agency. Bidding opens to owner occupants after 7 days and then should be on the MLS/BLC.

If it is on the HUDHomestore.com and not on the MLS or (BLC), contact the agent under the “Agent Info” Tab for questions about the property especially for showing instructions.

Yes! If the buyer still wishes their bid to be considered, it will have to be resubmitted daily. Of course, the buyer may wish to consider making changes to their bid to make it more aggressive if their bids are coming back "Cancelled" the next day.

On HUDHomestore.com look up th eproperty and then click on the Addendums tab. Scan the documents and see if the Property Condition Report (PCR) is listed. Open up this document and review it. This can help an agent and their buyers determine whether an inspection of this property is merited to meet their objectives.

Please come to one of our classes on selling a HUD home. Offered in Indianapolis and Florida monthly, this session will make you much more knowledgeable and prepared to work with HUD homes. See our current schedule.

HUD has eliminated the minimum commission of $2500, split between the selling and listing agents, and it is no longer available on the HUD Homestore. Going forward, all listings will reflect a maximum 6% total commission, split between the selling and listing agents. As of now, HUD has no plans to increase the commission percentage beyond 6%, but only may do so on a case by case basis.

To learn about the case by case exceptions. visit this post from our blog.

Simply put, a HUD offer is a unique offer as the listing agent is not providing an offer of cooperation. In the HUD Sales Contract the selling agent contracts with HUD for payment. This payment does not come from the Listing Broker. It does not mean you will not get paid. It means you need to build your payment into your bid understanding the seller, HUD, will pay a maximum 3% or $1250 whichever is more.

When submitting an accepted contract, a buyer will execute an Addendum A to the Sales Contract called a Forfeiture and Extension Policy. The terms of forfeiture of earnest money deposits are covered. This particular risk is not specifically cited. For an owner-occupant purchaser, it is possible that a plea could be developed based upon the open ended "other good cause" clause.

Bottom line is that your buyer takes this risk. Please be sure and be completely familiar with all the terms of this agreement when submitting an accepted package.

This is a list that we will add to as more companies are identified. As a buyer or agent, there is nothing in your bid submittal that requires you to identify a closing agent. HUD will pay your settlement fee as long as you utilize their contracted closing agent. Do not assume it is the company(s) below. Your ratified contract from the Asset Manager should provide this information. This is for reference only as the question is frequently asked:

Lawyers Advantage Title 225 S Westmonte Drive Suite 1100 Altamonte, FL 32714

This is a list that we will add to as more companies are identified. As a buyer or agent, there is nothing in your bid submittal that requires you to identify a closing agent. HUD will pay your settlement fee as long as you utilize their contracted closing agent. Do not assume it is the company(s) below. Your ratified contract from the Asset Manager should provide this information. This is for reference only as the question is frequently asked:

Hocker and Associates 7202 N Shadeland Ave # 207 Indianapolis, IN 46250-2031 (317) 578-1630

Contract Processing and Title 5750 Castle Creek Parkway North Dr. Indianapolis, IN 46250-4338

I am sorry but there is no method to submit bids/offers once a bid has been accepted. When a bid has been accepted, the property will be removed from the listings on HUDHomeStore.com. At this time, no more bids can be submitted. HUD or the Asset Managers will not accept offers any other way than the electronic bidding at HUDHomeStore.com. The Local Listing Brokers are not able to accept these offers....no matter how much the buyer insists!

Traditionally buyers of HUD homes have to have legal status in the United States in order to purchase as an owner occupant or investor. These means they need to have a registered individual tax identification at minimum to make a bid.

There are 2 different $100 down programs that buyers might be able to take advantage of. First is the Good Neighbor Next Door program, searchable on HUDHomestore.com but limited in applicability. See more information on this option here. Most likely what you are seeing reference to is a FHA financing program for HUD Homes where an FHA buyer, when qualified, offers full list price in their bid utilizing FHA financing with a $100 downpayment and even request up to 3% in closing costs. Your FHA lender should be familiar with this.

There really is not any one answer to this question. The selling agent must become familiar with the bidding process and timelines at HUDHomestore.com. The easiest thing is to find the property, and look on the listing page in the upper left part of the page. Review the Bid Submission Deadline and the Bid Submission Time Remaining. Based on the type of propety and the stage of the bidding process this could be as short as one hour or as long as 10 days.

Once you have this bidding time identified, then note that your bid will be reviewed in the next business day and you should be able to log in to your HUDHomeStore.com account after 12 noon to review the status of your offer.

When preparing line 5 of the Sales Contract, you will be able to request up to 3% of the bid amount for closing costs over and above those to be paid by HUD.

What the costs to be paid by HUD? Take a few minutes to review HUD Notice for Allowable Closing Costs Paid by HUD. Please note that HUD does not pay the cost of title insurance for a buyer.

HUD homes are sold in as-is condition. A HUD sales contract does not provide for a home inspection contingency. There a re a number of documents available on the property condition posted under the Addendum tab at HUDHomestore.com.

The escrow is what is available if buyer chooses to use FHA 203B financing. The escrow amount represents repairs that would need to be made (per FHA appraisal) to make the home FHA eligible It is funds set up after closing to pay for needed repairs at 110% of those noted by the FHA appraiser. HUD homes that are noted as Insured Escrow (IE) are homes with the information identified to plan for a FHA 203B loan. They are funded as an additional amount to the FHA loan through the FHA 203 B program. Your FHA lender should be familiar with this. It does not affect the price offered as that price is the as-is price.

The home inspection must be scheduled through the Field Service Managers. Return to HUDHomestore.com and click on the tab for Property Contacts. Enter the state and case number and the contacts will appear. Contact the Field Service manager listed and let them know that you want to schedule a home inspection for your accepted bidder. There are Utility Activation Request forms on our website or at the Asset Managers. These will need to be completed to request the utilities be activated. The FSM will have utilities turned on for a 48 hour period within an allowed period of 15 days after your contracts ratification. Each FSM has their own procedures so do not assume anything until you have the paperwork required to proceed. Things to plan for with your buyers for the utility activation request:

1. In states where winterization is required, it is a year round process. Buyer will be charged a de/re winterization fee.

2. The winterization fee is non-refundable

3. The fee must be paid in certified funds or a money order.

4. Buyer will pay to have utilities activated and will be responsible for turning them off.

Once the contract is submitted and indicates FHA financing, the Asset Manager initiates the work order to the Field Sales Manager. They then use HUD’s contractor to perform the clearance test and recommend any remediation. This all occurs before closing.

HUD homes are sold as-is but owner occupant buyers, using FHA financing, will have the chance to irradicate termites at HUD's expense. All other buyers who discover termites will need to treat and repair after the closing at their own expense.

First, the buyer needs to have a home inspection to complete a termite inspection. If termites are found, or damage related to termites, the buyer's agent needs to contact the Field Services Manager (FSM) assigned to the property to inquire as to procedures. The FSM will likely confirm the termite issue with their own inspection. Treatment and any repairs will be completed for the FHA buyer only.