HUD Sales Training from Carolyn Walters of AmeriRealty Atlanta

1. OFFICE: 678-261-1234
CELL: 770-806-9997
Part I

2. HOW A HOUSE BECOMES A HUD
HOME
Please call us…
Tom Walters : 770-806-9997
Office: 678-261-1234
www. hudhomestore.com

3. HOW A HOUSE BECOMES A HUD HOME
By the end of
this lesson,
you will know
99 more about
foreclosures
% than 99% of
all realtors.

4. FORECLOSURE STEPS
1. A Home is Foreclosed Upon
2. The Mortgage Holder Transfers the
Property
3. HUD Pays the Mortgage in Full
4. HUD Assigns the Property to the
“M&M” contractor
5. The “M&M” Assigns the Property to the
Listing Broker
6. The Listing Broker then Lists the
Property with the Multiple List Services
7. The Selling or Listing Brokers Place
Bids on HUD Properties

5. WHAT IS A FORECLOSURE?
A property “taken back” by
the bank due to failure to
make mortgage payments.
This default is called a
foreclosure.

6. BANK FORECLOSURES
Banks are not in the
business of buying or
selling properties.
Their goal is to sell
these houses and get
them off their books as
quickly as possible.

7. BANK OWNED PROPERTY
If the property is “FHA
Insured” the bank
transfers the property to
HUD. HUD re-
imburses the FHA for
expenses. This means the
property is officially a HUD
home.

8. WHAT IS HUD?
HUD is the U.S. Department
of Housing and Urban
Development. HUD was
established to strengthen
communities and promote
equal housing opportunities
by providing affordable
mortgages. HUD does this
through FHA insured
mortgages. This is a good
option for first time home
buyers because they require
a smaller down payment
than a conventional loan.

9. HOW DOES IT WORK?
HUD is required to pay off
the bank.
HUD take ownership of the
property.
The property becomes a
HUD home.
A HUD Home is one, that is part
of the Federal Inventory of
homes originally financed
through FHA insured loans.

10. WHAT IS THE FHA?
The FHA is a federal
agency that insures
mortgages. The
FHA does NOT lend
money, build
houses , or
foreclose on
homes.

11. WHAT DOES HUD OFFER?
HUD offers:
INCREDIBLE INSEntives!
HUD enlists Marketing &
Management Contractors (M&M)
to help sell the properties.
The M&M is responsible for the
cleanup and securing of a
property.
These homes are then assigned to
a Broad Listing Broker (BLB).

12. • HUD homes are sold in “as
is” condition.
WHAT TO EXPECT
• HUD makes no repairs to
the houses.
• HUD recommends all
purchasers get a complete
home inspection.
• Many of the houses do have
ESCROW repairs requiring
you to have repairs done
after closing.
• If you find that your home
needs more repairs, you can
get a special 203K FHA loan
.

13. HOW TO FIND A HUD HOME?
WWW.
HUDHOMESTORE.COM
This website will provide
you with information that
is accurate and constantly
being updated.
Information in the multi-
lists can be inaccurate
due to bids being
accepted by HUD. This
website is very user
friendly . Please contact
the listing broker for
additional information.

14. HOW TO BUY A HUD PROPERTY
To buy a HUD home,
you must be a broker
or licensed agent
registered with HUD.
Buyers cannot directly
bid.
Only a registered agent
can submit a bid.
Your agent is required to
submit contract to the
M&M so it can be
received within 24
hours

15. HUD INCENTIVES
 HUD must sell these homes.
 HUD pays the listing agent and selling
agents commission.
 HUD will finance some repairs.
 HUD lists homes below market value.
 HUD will pay for the attorney’s fees
with HUD approved attorney.
 HUD will sell the house with a $100
down payment for owner occupants.
These are little know
incentives!

16. I hope that this lesson has
helped you to understand
how a house becomes a HUD Sold For Sale
home. Please check out some
of our other lessons to help
you purchase your new
home. If you have any further
questions, please contact
Tom or Carolyn Walters at
770-806-9997.
Purchase Marketing
Thank you!