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1©2011 FirstPreston HT. This document includes data that shall not be duplicated, used or disclosed - in whole or in part ...
Section 1• Intro to M&M III• HOC Regions• Broker Registration                                                             ...
HUD Basics• HUD has awarded contracts to several  companies to serve as Asset Managers  (AM) and other firms to serve as F...
HUD Basics• The purpose of the structure is to:  – Increase the effectiveness of HUD’s asset    disposition program  – Fos...
Home Ownership Centers (HOCs) Home Ownership Center Location                                                              ...
Atlanta HOC Regions                                                                                                       ...
Denver HOC Regions                                                                                                        ...
Philly HOC Regions                                                                                                        ...
Santa Ana HOC Regions                                                                                                     ...
Broker Registration                                                                                                       ...
NAID Number       • What is it?               – Name Address Identification Number               – Assigned to the Broker ...
NAID Registration             Selling Brokers, Nonprofits, or Government Agencies• You can make an offer on a HUD Home onl...
NAID Registration                                                                                                    Click...
Registering on HUDHomeStore.com                           Principal Broker Instructions• Prior to registering as a broker ...
Principal Broker User• Go to HUDHomestore.com• Click on “Bidder” Link                                                     ...
Selling Agent User• Selling Agents and Associate Brokers of the  same company must register after the  Principal has been ...
Section 2• Bidding Time Line• Brokers/Agents• Submitting an Offer                                                         ...
Bidding Time Line                                                                                                         ...
Exclusive “Owner Occupant” Period   *Must Live in the House for 12 Months / *May Not Purchase as O/O for 24 months • Prope...
Exclusive “Owner Occupant” Period   *Must Live in the House for 12 Months / *May Not Purchase as O/O for 24 months • Prope...
Real Estate Agents and Brokers                                                                                            ...
Listing Brokers•LB’s are subcontracted by the AM’s and are responsible forlisting and marketing HUD properties and serve a...
Selling Brokers•A selling broker may earn up to 3% commission, but may alsochoose to reduce their commission to increase t...
Commissions• Brokerage commissions   • Maximum of 6% Commission     • Listing Broker Commission is 3%     • Selling Broker...
Submitting an Offer                                                                                                       ...
Go to www.HUD.gov/HUDHomes                                                                                                ...
Bidding on a Property                                                                                                 • Cl...
Bidding on a Property• Select Submit an Offer                                                                             ...
Bidding on a Property• Select NAID Type                                                                                   ...
Bidding on a Property                                                                                            • Enter N...
Section Three• Home Inspections• Earnest Money                                                                            ...
Home Inspections                                                                                                          ...
Should Buyers Get Home Inspections?• All HUD homes are sold “As-Is”• HUD does not warrant the condition of its  properties...
Inspection Process Takes place after the sales contract has been executed Selling agent completes inspection request for...
Earnest Money                                                                                                             ...
Earnest Money                  May vary from AM to AM• Earnest Money Deposit - Made Payable to HUD                        ...
Section Four• Successful Closing                                                                                          ...
Extension Requests                                                                                                        ...
Extension Requirements• Extensions of Escrow Due Date   – Time to close is 20 - 30 days for cash and 30-45 days for     an...
Next Steps to Closing Ratified Contract     •   Signed contract sent to Closing and Selling Agents     •   HomeTelos forw...
Additional Resources                                                                                    •The bidding site ...
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One hour sshh pin

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Transcript of "One hour sshh pin"

  1. 1. 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 .
  2. 2. Section 1• Intro to M&M III• HOC Regions• Broker Registration 2 ©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 .
  3. 3. 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 ©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 .
  4. 4. 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 ©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 .
  5. 5. Home Ownership Centers (HOCs) Home Ownership Center Location 5 ©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 .
  6. 6. Atlanta HOC Regions 6©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 .
  7. 7. Denver HOC Regions 7©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 .
  8. 8. Philly HOC Regions 8©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 .
  9. 9. Santa Ana HOC Regions 9©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 .
  10. 10. Broker Registration 10©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 .
  11. 11. 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©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 .
  12. 12. 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 ©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 .
  13. 13. NAID Registration Click on NAID Registration 13©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 .
  14. 14. 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 ©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 .
  15. 15. Principal Broker User• Go to HUDHomestore.com• Click on “Bidder” Link 15 ©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 .
  16. 16. 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 ©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 .
  17. 17. Section 2• Bidding Time Line• Brokers/Agents• Submitting an Offer 17 ©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 .
  18. 18. Bidding Time Line 18©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 .
  19. 19. 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 ©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 .
  20. 20. 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 ©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 .
  21. 21. Real Estate Agents and Brokers 21©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 .
  22. 22. Listing Brokers•LB’s are subcontracted by the AM’s and are responsible forlisting and marketing HUD properties and serve as the “eyes andears” for the AM’s•Among other things, LB’s will place properties in the MLS andprovide signage on each HUD listing•Commissions are determined by the AM, with a maximum totalof 6%•If you are interested in becoming a Listing Broker you mustcontact the Asset Manager in your region to receiveinformation, as this is not a function of HUD. 22 ©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 .
  23. 23. Selling Brokers•A selling broker may earn up to 3% commission, but may alsochoose to reduce their commission to increase the net to HUD•Commission checks are made out to the brokers name andaddress as it is registered•Selling brokers are responsible for understanding HUD contractsand the entire HUD sale process. You must be able to properlyinform and assist your buyer throughout the entire transaction 23 ©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 .
  24. 24. 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 ©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 .
  25. 25. Submitting an Offer 25©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 .
  26. 26. Go to www.HUD.gov/HUDHomes 26©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 .
  27. 27. 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 ©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 .
  28. 28. Bidding on a Property• Select Submit an Offer 28 ©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 .
  29. 29. Bidding on a Property• Select NAID Type 29 ©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 .
  30. 30. Bidding on a Property • Enter NAID Number • Enter Real Estate License Number • Enter Security Code • Click “Verify NAID” ButtonNOTE: The License must be for the same state in which property is located 30 ©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 .
  31. 31. Section Three• Home Inspections• Earnest Money 31 ©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 .
  32. 32. Home Inspections 32©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 .
  33. 33. 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 ©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 .
  34. 34. 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 ©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 .
  35. 35. Earnest Money 35©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 .
  36. 36. 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 ©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 .
  37. 37. Section Four• Successful Closing 37 ©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 .
  38. 38. Extension Requests 38©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 .
  39. 39. 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 ©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 .
  40. 40. 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 ©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 .
  41. 41. 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©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 .
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