• For Insurable and Insurable With Escrow properties, bids shall be opened and reviewed on the fifteenth (15th) day of the Exclusive Listing Period. All bids will be treated as having been received simultaneously. If no winning bid is received by the fifteenth (15th) day, bids shall be opened and reviewed on each day after the fifteenth (15th) day up to the thirtieth (30th) day, or until a winning bid is received. If no winning bid is received in that thirty (30) day period, the listing shall be extended to all buyers. See Extended Listing Period below.
• For Uninsurable properties, bids shall be opened and reviewed on the sixth (6th) day. All bids will be treated as having been received simultaneously. If no acceptable Owner Occupant net bid is received, the listing shall be extended to all buyers. See Extended Listing Period below.

Back to Top

Where do I go if I have questions about a property?

Contact the Listing or Selling Agent, or the Asset Manager for the property. You can find contact information by clicking the Property Case number, then clicking the Agent Info tab. The HUD Homestore Help Desk cannot answer questions about individual properties and will refer you back to the Agent Information.

Back to Top

I am an investor. When can I bid on a HUD property?

During the exclusive listing period, bids may be submitted by Owner Occupants. At the conclusion of this exclusive listing priority period all general public bids will be accepted.

Back to Top

Do I need an agent to make an offer?

You cannot put in an offer on a HUD Home by yourself. You must use a Selling Broker who is licensed to sell HUD Homes to represent you, or you can go through the Listing Broker for the home. Only brokerages with a NAID number can submit bids on HUD homes. Agents should check with their brokers to see if they have a NAID number.

Back to Top

What is Required Earnest Money Deposit?

Earnest Money Deposit must be in the form of a cashier's check, money order, or other certified funds made payable to the U.S. Department of Housing and Urban Development. The original Earnest Money check should be submitted with the sales contract after bid acceptance. The Earnest Money deposit will be sent to the Closing Agent after contract execution.

• $1,000 for offers greater than $50,000,
• $500 for offers $50,000 or less,
• 50% of the Listing Price for Vacant Lots

Back to Top

What is required downpayment?

Owner Occupants Only:
3.5% Minimum Down payment for FHA financed properties.
Maximum mortgage amount 96.5% 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.

Back to Top

Bid Opening, Review and Results

In order to be valid for bid opening on a specific day, bids must be completed and confirmed on the Internet no later than 11:59 p.m. on the previous day. Bids received on the same day shall be considered to have been received simultaneously. Friday, Saturday and Sunday bids will be considered to have been received simultaneously and will be reviewed simultaneously on the following Monday.

Bids will be opened and reviewed each business day. The highest acceptable net bid to HUD will be selected. Results will be posted each business day by 1:00 p.m.

REMINDER: Brokers must check the HUD Listings website on a daily basis for available properties and Bid Result Publication. If your bid is selected, Brokers must submit the original written and completed HUD Sales Contract along with the required Addenda to the appropriate office 0f M&M Contractor within the next 48 hours of Bid Result Publication otherwise the bid will be considered canceled and the second highest acceptable net bid to HUD will be considered. To be acceptable, hard copies must contain no errors.

Back to Top

Forfeiture of Earnest Money Policy

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.
Forfeiture of Earnest Money Deposits:
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.
Investor Purchasers:

• 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:
  1. There has been a death in the immediate family (contract holder, spouse, or children living in the same household);
  2. 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;
  3. There has been a loss of job by one of the primary breadwinners, or substantial loss of income through no fault of the purchaser;
  4. On an insured sale, HUD or a Direct Endorsement underwriter determines that the purchaser is not an acceptable borrower;
  5. 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. “Preapproved” 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
  6. For other good cause, as determined by the 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, or where documentation must be received by M&M Contractors no later than close of business on the tenth day following cancellation of contract.

Back to Top

Closing Time Frame

All purchasers must close on or before forty five (45) days of contract acceptance date.

Back to Top

Closing Extension Policy

ALL SALES ARE EXPECTED TO CLOSE WITHIN THE APPLICABLE TIME FRAME IDENTIFIED ON LINE 9 OF THE SALES CONTRACT.
If the closing does not occur on or before the specified date on line 9 of the HUD Sales Contract 9548, the HUD Broker should contact HUD's Closing Agent no later than FIVE days prior to the contract expiration date and request an extension. M&M Contractor, as HUD's Representative, may grant an extension of closing time and, if approved, each extension will be for a period of fifteen (15) days as follows:

• The initial 15-day extension will be provided for owner occupant purchasers, at no cost, only 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.
• Documentation submitted with the extension request must establish that a closing can reasonably be expected to occur within the extension period. Extension fee’s that do not qualify for waiver will be charged as follows for a period of fifteen (15) day increments:

• Extension fee checks are to be either Money Order or Bank Certified, Personal checks and Cash are not acceptable. Funds are to be made payable to HUD and delivered to HUD’s Designated Closing agent along with the attached closing extension request and all necessary backup as described above.
• Extension fees are non-refundable however, if closing occurs in less than the approved extension time, the buyer will be credited at closing for the per day fee for the unused portion of time.
• The approval of an extension does not obligate M&M Contractor, as HUD's Representative, to grant future extensions.

Back to Top

How do I obtain a NAID?

 

You can find the documents to apply for a NAID on HUDHomestore.com using the NAID Registration link. When you have completed the application process, you will be issued a NAID. Once you have obtained a NAID, you can register at HUDHomestore.com and create a user name and password login. If you are a Selling Agent, your principal broker must be registered before you can register. This NAID registration permits you to make an offer on a HUD property and proceed to the sale closing.

To obtain a NAID:

1. Click the NAID Registration link.

2. Click the Bidder Application link and complete the form.

3. Click the Selling Broker Certification link and complete the form.

4. Find the correct address for your state's Homeownership Center, and mail the forms.

Back to Top

 

Why an agent has to register as a bidder?

HUD requires each selling broker/agent (as well as nonprofits and government agencies) to register as a bidder so HUD can confirm that you are using a valid NAID and to authenticate your identity. Only valid bidders are permitted to make offers on HUDHomestore.com.

Back to Top

How do I keep track of offers I make for clients?

Once you submit an offer you can check the status of your offer by logging in to HUDHomestore.com. On the Review Your Bids page you can search for a specific offer or view a list of all of your current offers. You can only view bids that you have submitted.

Back to Top

What is the Bid Amount?

The Bid Amount is the sale price for the property. It is a fair market value based on a recent appraisal. You can make an offer under or over the sale price. HUDHomestore.com will select a winning bid based on the offer that gives the highest net to HUD.

Back to Top

What is a Bid Open Date?

The Bid Open Date is the date on which the asset manager can open, and accept or reject bids.

Back to Top

When are bids opened?

The asset manager can open and accept bids on the Bid Open Date. The date and time that this can occur is shown on the Property Details screen. Bid Open dates vary according to the type of listing period that the property is currently in.

Back to Top

How will I know who is the asset manager for a particular property?

It can be found on “Agent Info” tab of the property on HUDHomeStore.com site.

Back to Top

What forms do I need to submit with an offer?

All required forms can be found on “Addendums” tab of the property. These are possible forms that might be required:
General Forms:

• Fillable HUD Sales Contract Form 9548 Revision (1/99)
• General Addendum to HUD Sales Contract
• Notice to Purchaser Addendum
• For Your Protection: Get a Home Inspection
• Certification of Owner-Occupant
• Radon Gas and Mold Notice and Release Agreement
• 203(k) Rehabilitation Financing Lead Agreement