BLB Resources and HUD processes for selling HUD homes.

1. Connecticut
HUD Sales Training Class
Welcome to HUD Selling
Broker training!

2. Presenting today….
Dan Kildea
Sellstate Leading Edge Realty
Tammy Boles-Senkewitcz
Asset Real Estate
Cell: 860-823-9426
sellstatelere@gmail.com
Cell: 860-908-4663
tammy@theassetteam.com

3. Copy of the presentation
Visit www.slideshare.net/dkildea

4.  Highlights of HUD’s M&M III Changes
 Where HUD Properties come from & where
to find them.
 Broker Registration Process
 Bidding Process
 Preparing & Submitting the Contract
 The Closing Process
What we will cover today. . .

5. Highlights of Changes made by
HUD
M & M firms-
 Manage & Market
 BLB Resources Inc.
 Pricing and Marketing
 Contract with Local Listing Brokers.
 Ensure customer service and
satisfaction.

6. Local Listing Brokers
 Referred to as LLB
 Formerly known as “Broad Listing Brokers”,or
“BLB”
 Multiple listing brokers in each area/county.
Local Listing Broker Duties:
 Inspect property for any repair items needed.
 Provide initial Broker Price Opinion (BPO).
 Insure access for showings.

7. LLB Duties
Marketing:
 List in the most appropriate MLS (s)
 Present as mainstream real estate, not as
distressed.
 Signage.
 On-going BPO’s and marketing reports.
 Customer Service to both buyers and agents.
 Industry meetings to train and inform agents
of changes and processes.
 Outreach events for buyers to promote HUD
homes.

8. • Myth: HUD will pay for you to totally
remodel and update your HUD Home.
• Fact: HUD Homes are
HUD Home Myth Busters
• Myth: HUD Homes are low-end housing.
• Fact: HUD homes are available in a variety
neighborhoods, condition and prices ranges.
• Myth: HUD Homes are not good investments.
• Fact: HUD homes are offered at fair market value
Sold AS-IS

9. Where HUD Properties Come From
A HUD-owned property. . .
 Home purchased using FHA insured loan
 Homeowner defaults on payments
 Foreclosed by the lender, and
 lender transferred ownership to HUD in return for
payment of the insurance claim.

10. HUD’s Mission and Fair Housing
 To increase homeownership, support
community development, and increase
access to affordable housing free from
discrimination including:
Race, color, religion, national
origin, sex, handicap, familial
status.

11. Benefits for You when
Selling HUD Homes
• Any licensed real estate agent can show any available
HUD property.
• You can advertise HUD homes.
• Unlike Short Sales, no long delay period
• waiting for approval
• You have reports and basic information about the home
• You know that HUD will not perform any repairs
• Large continuing inventory of homes

12. Email from MBA received 02/08/2018

13. Showing HUD Homes
• Any licensed real estate agent can show any available
HUD property.
 Sign In when showing property (kitchen countertop)
 Insure property is locked & secure when done!
 Removing or damaging any signage is forbidden!
• Unprofessional practices and non-compliance could
result in your brokerage being suspended from
selling HUD homes!

14. Can You Advertise HUD Homes?
 YES! (get approval from listing Broker)
 DO use equal housing logo
 Advertised prices must match
hudhomestore.com
 Be positive and promote HUD homes
• Acceptable References include…
 “HUD-Owned”, “HUD Acquired” or “For
Sale”
 Do not imply exclusivity.
 Do not place a sign on the property or
yard.

15. Showing HUD homes
 Use Showing Access to get codes

16. Where to find HUD Homes?
www.HUDHomeStore.com
From the home page you can:
 View the latest HUD news
 View the HUD resources available
 NAID Registration:
◦ check the status of your registration
◦ download the application
◦ send to HUD
 Find a Broker, Property contacts, FAQ’s
 Search properties by state, county, city,
zip code, price range, etc.

17. How You Can Sell
HUD Homes

18. 1:Broker
must have
NAID
2: Broker
must
register
on
website
3: Create
your
Selling
Agent
account

19.  Broker must submit paperwork to
HUD to receive a Name Address
IDentifier).
 Up to 45 days ( 6-8 weeks) to
process.
 Must renew annually, NO NOTICE
IS SENT.
 If your number expires, it takes 45
days to process as well.
 HUD Resource Center @
1-800-225-5342

20. Broker of Record must Register as a
“Bidder”

21. re.com
 Click “register as a BIDDER”.
 Once registered, you will be able to
log in and view properties, submit
bids, save searches, etc.
 If you try to register and the site
returns a page with a red error
message, your broker is either:
 Not registered, or
 You didn’t update the site with your
current license expiration date.

26. •ECR – Environmental Compliance Record
•PCR – Property Condition Report
•OO Package – Owner Occupant package
•LBP – Lead Based Paint
•MPR – Maintenance & Property Repair list
(Insurable with Escrow items)
•LISTING NOTES – same as MPR
•GNND – Good Neighbor Next Door

29. ANY QUESTIONS….

30. Who are HUD Buyers?
Owner
Occupants
Good
Neighbor
Next Door
Owner Occupants
Investors
Government
Agencies &
HUD
approved non-
Profits

31. HUD Buyer Types
• Owner Occupants
 Have priority during certain bid cycles
 Required to occupy as primary residence for 1 year
 Cannot purchase another HUD property for 2 years
 They cannot have purchased a HUD home as an
owner occupant in the last 2 years
• Investors
 May submit bids on Day 16 (Extended period)
 No restriction on purchase quantity

32. HUD Buyer Types (Continued)
• Government Agencies & HUD Approved Non-Profits
 Must be approved by HUD as a Non-Profit.
 Have their own NAID; submit bids themselves.
• Good Neighbor Next Door (GNND)
 The Good Neighbor Next door program offers
firefighters, EMTs, police officers and teachers
significant discounts for purchasing homes in
designated revitalization areas.

33. GNND Program
• HUD offers 50% discount off of the list price
to eligible buyers.
• Buyer cannot have owned another home for
one year prior to closing.
• Buyer must occupy home as primary
residence for a period of 3 years.
• Eligible participants must work in the same
area as the location of the home.
• Properties must be located in HUD
designated revitalization areas.

34. GNND (Continued)
• Buyer must bid 100% of the list price.
• Can utilize any type of financing or cash deal.
• When using FHA…
• Buyer must qualify for entire contract amount prior to discount
• Can finance into mortgage all reasonable and customary closing
costs
• HUD will not pay any closing cost or real
estate commissions.

35. Revitalization
Areas in
Norwich

36. Revitalization
Areas in New
London

37. Q: “So, when can
my Buyer submit an
offer? “
A: It depends on two
factors:
Location
Condition

38. Listing Codes
IN - Insurable
IE - Insurable with Escrow
UI - Uninsured
The Condition of the property will determine the
Listing Code…

39. Listing Codes
• Appraisal indicates the property meets
203b minimum property requirements
(MPR), no obvious repairs necessary.
• Think traditional FHA loan
IN - Insurable
• Appraisal indicates the property will be
eligible for 203b FHA loan but needs some
repairs; necessary repairs total less than
$5,000.
• Think traditional FHA loan
IE – Insurable
with Escrow
• Appraisal indicates property does not meet
minimum property requirements (MPR)
and/or requires more than $5,000 in MPR
repairs.
• Think FHA 203k loan
UI -
Uninsurable

40. IN – Insurable
 Property condition will qualify for FHA
financing
 Does NOT require using FHA loan for
purchase

41. IE - Insurable with Escrow
 Only applies when using FHA 203b financing and required repairs
are less than $5000
 Not a gift from HUD!
 NO REPAIRS CAN BE MADE BEFORE CLOSING.
 The buyer must come up with this amount in cash at closing ABOVE
the purchase price!
◦ On the HUD contract form 9548, enter “TBD” for the escrow amount.
◦ Your buyer’s lender will complete an FHA appraisal; that appraisal will
determine what items need to be placed on escrow list.
◦ At the closing table, the purchaser will give this amount to be held in an
escrow account. The lender will order the repairs to be complete in 90
days by a licensed contractor.
◦ FHA will inspect and the contractor will be paid out of the escrow account.
◦ If all the money is not used, it will be credited toward the loan principal.

42. UI - Uninsurable
 Property requires repairs in excess of
$5,000.
 Eligible for FHA 203k renovation
financing.
 Does NOT require use of FHA
financing.

43. Listing
Code
IN - Insurable
IE - Insurable
with Escrow
UI -
Uninsured
Listing
Period
Exclusive
Extended
Lottery
The Listing Code (condition)
determines the Listing Period…

44. Exclusive
Listing
Period
IN
Insurable
IE
Insurable
with Escrow
Extended
Listing

45. EXCLUSIVE
PERIOD:
First 10 days
EXCLUSIVE
PERIOD:
Days 11 to 15
EXTENDED
PERIOD:
Day 16 
Owner Occupants, non-profits, and
Government/Municipal agencies
Sealed Bid Period
Owner Occupants, non-profits, and
Government/Municipal agencies
Bids reviewed Daily
All Bidders (includes Investors))
Bids reviewed Daily
IN or IE properties; who can bid….

46. EXCLUSIVE
PERIOD:
First 5 days
EXCLUSIVE
PERIOD:
Days 6 to 15
EXTENDED
PERIOD:
Day 16 
Bids submitted during the first 5 days are held and not
responded to. On the 6th day all bids opened and reviewed.
(Sealed Bid Period)
(Governments, approved non-Profits, Owner Occupants)
The next 10 days are daily owner occupant bidding. Bids received
are reviewed each day, may be accepted.
(Daily Bid review)
(Governments, approved non-Profits, Owner Occupants)
On day 16 all Bidders are allowed for daily bidding. This is
where Investors can submit bids.
(Daily Bid review)
All Bidders

48.  Is the house Uninsurable (UI)?
 Then, the home will be listed under the
Lottery Period first…

49. 5 Day Sealed Bid period for Municipalities/
Non-Profits; bids opened on the 6th day.
UnInsurable (UI) properties
If no acceptable bids, All bidders can bid 6th day
forward.

50. Screen capture 9/21/2012

51. Screen capture 9/26/2012

52. If the property is in a Revitalization Area,
HUD may decide to list the home for sale
under the Good Neighbor Next Door (GNND)
program.

53. LOTTERY
PERIOD:
First 7 days
EXCLUSIVE
PERIOD:
Days 1 to 15
EXTENDED
PERIOD:
Day 22 
Good Neighbor Next Door qualified bidders.
First 5 days are sealed bids, all bids reviewed on day 6.
Day 6 & 7, daily bidding for GNND buyers.
Owner Occupants, non-profits, and
Government/Municipal agencies
Bids reviewed Daily
All Bidders (includes Investors))
Bids reviewed Daily
Good Neighbor Next Door properties

54. Dollar Period
 For properties that could not be sold
after 6 months on market.
 Offered to municipalities for $1.
 Foster opportunities for low and
moderate income home ownership.

55. READY TO WRITE
AN OFFER?

56. Remember….
1. If you have buyers interesting in making
an offer, and you can find the house still
listed on HUDhomestore.com, then it is
still available.
2. If the property is not available,
in a pending status, or
is under contract,
YOU CANNOT BID!

57. READY TO WRITE AN OFFER?
COMPLETE
THE CONTRACT
FIRST!

58. Submitting an Offer
 No local P&S needed!
 The contract packages are found in the addendums tab in the
property detail sheet.
 The contract package needs to be filled out in entirety
BEFORE you submit online.
 Earnest money in certified funds (made out to Buyer Select
Closing Agent [Attorney])and pre-qualification should be
received from your Buyer before you submit online:
$500 if sales price $50,000 and under
$1000 if sales price is $50,001 and over
 All signatures on the contract and addendums should be
in blue ink, black ink is acceptable.
 No white out or liquid paper can be used on contractual
documents.

59. 123-123456John Doe and Mary Doe
123 Main Street, Any City, Lake County, State
John Doe and Mary Doe
100,000
1,000
Buyer Select Closing Agent (legal firm name)
X
3,000
97,000 360
3,000
(not to exceed 3%)
3,000
91,000
The Contract
X
3,000

60. X
45 or 30
X
X X
JD
John Doe 123-44-5678 Mary Doe 123-44-5665
201-555-6789
06/25/2013
XYZ Realty, Inc.
234 Main Street, Anycity, ST 22222
55-5555555 XYZRLTY5555
555-222-5555
MD
Buyer’s selected Attorney (Buyer Select Closing Agent)
123 Ofori Lane, Your Town, USAJohn Doe Mary Doe
Fred Smith
Jane McKay 860-123-4567
John Doe & Mary Doe

61. Top 5Common
Contract Errors
Frequently Made Errors Correct Entry
Line #3 – Earnest Money Held By Buyer Select Closing Agent
Be sure to enter correct amount of earnest
money.
Line #4 – Type of Financing Check correct box that corresponds to the
financing type. 203b is not accepted if the
property is listed UI.
Line #9 – Closing Timeframe BLB Resources allows 45 days for FHA/other
financed offers, and 30 days for cash.
Line #11 – Frequently left blank and it
should not be.
Be sure to check correct box and attach all
appropriate addenda. Other addenda always
included in a contract package. Lead Based
Paint addendum required if house built prior to
1978.
Line # 12 – Purchasers initial Earnest
Money Deposits
All purchaser(s) initials must be on the contract.

62. NO REPAIRS
Or
MOVING IN
BEFORE
CLOSING!

63. Submitting an Offer
1. Go to www.Hudhomestore.com
2. Log in as Bidder
3. Find the property
4. Click on “Submit an Offer”

64. Submitting an Offer

66. 60000

70. Once your Bid is complete:
 Print the Bid Acknowledgement page.
 Include a copy of the Acknowledgement page
when you send the Sales Contract to Ofori.

71. Offer Acceptance
 On bid deadline day, all offers are reviewed and
either accepted, rejected (cancelled), or counter
offered. This is done by email.
 The asset company will notify you via email if
your bid is accepted. Please keep an eye on your
spam or junk mail folder if you have put an offer
in. no_reply@blbresources.net
 If a change needs to be made after the contract
is accepted, notify your asset manager
immediately.
 Cancellation forms? On asset management’s
website.

72. COUNTER OFFERS
 If an offer is within acceptable range, BLB
Resources initiates counter-offer, specifying
the lowest Net amount HUD can accept.
 The email counter-offer will go to ALL buyers
that have submitted offers on that property in
the past, not just your buyer!
 Your buyer should make their best offer.
 Don’t Counter with a Counter!

74. Contract Package may include:
 Electronic HUD 9548 Sales Contract/ Condition of Sale
 Electronic Filing of HUD 9548 contract addendum
 Owner Occupant Certification ( if applicable)
 For Your Protection: Get a Home Inspection
 Radon Gas and Mold Notice
 Pre Qualification Letter Or Certification of Funds
 Forfeiture and Extension Policy or General Addendum
 Lead Based Paint Addendum ( if applicable)
 Flood Zone addendum ( if applicable)
 Notice to Purchaser addendum ( if applicable)
 Earnest Money check with EM Certification Form
 All signatures in blue ink
 Earnest Money check is sent in with the contract
package; made payable to Buyer Select Closing Agent!

75. Commission Restrictions
Effective 12-15-16, HUD will no longer pay a sales commission to the
Selling Broker (Buyer’s Broker) on an Investor sale if the investor/buyer
is also the Selling Broker (Buyer’s Broker) on that file.
For example, if Selling Agent John Doe is representing themselves
on a HUD sales transaction, and their sales contract is for Investor
purchaser type, then HUD will not be paying the Selling Broker
commission to John Doe.
This would also affect the Selling Agent commission if the Selling Agent
(Buyer’s Agent) is somehow affiliated with the buyer and the buyer is an
Investor type.
For example, if Selling Agent John Doe places an Investor-
purchaser bid for XYZ Co., and they are also affiliated (or own a
stake) with XYZ Co., then they will not receive a Selling Agent
commission.
This new policy only applies to the Selling Broker side, and only if the
Selling Broker is also the Investor buyer on the same sales transaction.
HUDHomestore will not be programmed to accommodate this change.

76. Buyer Select Closing Agent program
 CT now is part of HUD’s Buyer Select
program (BSCA), effective July 8,
2013
 EM check delivered to LLB

77. How can I Cancel my Client’s
Bid?
● Prior to bid acceptance, agents may cancel, modify
or withdraw bids by logging in on
www.HUDHomestore.com
● Note: multiple bids are not allowed for the same
property, the previous bid must be cancelled prior to
placing a new bid on the same property
● After bid acceptance, please complete the
cancellation request form available on BLB
Resources’ Agent Resources page corresponding
to your state
https://www.blbresources.com/resourcemap
● Fax to (248) 301-6647 or email to
3Pcancellations@blbresources.com

78. E-Signatures – Now Accepted
● As of 5/1/17, E-Signatures are
accepted through DocuSign
● All parties privy to the sales contract
will receive direct emails at
designated times in the workflow
requiring verification and e-
Signatures of the sales contract
documents

79. E-Signatures – Now Accepted Cont.
 All agents must be opting into the E-Signature process
unless a paper contract submission is approved by BLB.
HUD’s expectation is that most sales contracts will be
conducted via E-Signature. The Buyer’s Agent and buyers
will only be allowed to proceed with hard copy sales
contracts if they have an extenuating reason for not being
able to proceed via E-Signature. Our P260 database will
also need to be noted thoroughly with any exceptions
◦ EXCEPTION = NO EMAIL ADDRESS – If a buyer does not
have an email address or immediate access to a
computer/Internet, then request permission from BLB to do a
paper contract as we will note the P260 record with as much
information as possible. If your buyer does have a computer and
internet, but no email address, we recommend they get a free
email account from Gmail, Yahoo, or the other countless of e-
mail services available online

80. E-Signatures – Bid Submission
 Selling Agent Registration on HUDHomestore
◦ Selling Agents (Buyer Agents) MUST register for their own Selling
Agent/Bidder account on HUDHomestore and submit their bids
under that account. It’s not only against HUD policy to submit a bid
under their Broker’s HUDHomestore account or that of another
Selling Agent, it conflicts with the E-Signature process and will
cause issues down the road
 Purchasers (New)
◦ Previously, when submitting a bid, the Selling Agent would enter a
primary purchaser and possibly a secondary purchaser
◦ The Bid Submission screen now allows for a primary purchaser
and up to three (3) additional purchasers
◦ A phone number and email are required for each purchaser.
Although a cell phone number is optional for the primary purchaser
during bid submission, it is highly recommended to include one
since it may have to be used as a method of verification.
Verification is required before signing the electronic document
There are a number of changes to the Bid
Submission screen on HUDHomestore.com…some
are below

81. E-Signatures – Bid Submission
Cont.
 Buyers Select Closing
Agent (New)
◦ When placing a bid, the
Selling Agent is required to
select an existing Buyer
Select Closing Agent (BSCA)
or type in the name of a
company that has not yet
been set up with a Title ID #
◦ The Selling Agent must also
enter one escrow officer; this
contact is selected from any
already linked to the BSCA,
or a new one can be entered.
There is an option to enter
another backup officer, but
this is not required

82. E-Signatures – Bid Submission
Cont.
 Buyers Select Closing Agent
(Cont.)
◦ When typing the BSCA information on
the electronic bid form, Buyer Agent
should type slowly and pay attention to
the options being provided. If that BSCA
is listed, they can select it from the list so
the information matches P260 data.
 If the BSCA is not available in the list, then
buyer agent must call the buyer’s BSCA and
request a copy of their license and E&O
Insurance. These two documents will need to
be emailed to the
3Psalescontracts@blbresources.com email
address as soon as bid is accepted.
 The Buyer Agent will not get the “UPLOAD”
option in the “Checklist” screen of their
“Accepted Bids” tab on HUDHomestore until a
Title ID has been approved by HUD, which
means the contract cannot go out until the
upload is present and verified.
◦ BLB Resources will be notified if a new
BSCA is entered that is in need of a Title
ID #

83. E-Signatures – Bid Submission
Cont.
 Conflict of Interest Question (New)
◦ The Selling Agent is required to respond to a question concerning whether
the purchaser is affiliated with HUD, or companies contracting with HUD,
including asset managers, field service managers, appraisers, listing
brokers, and closing agents
◦ If one or more purchasers has a conflict of interest, an additional dialog
box displays asking whether one of the purchasers is a HUD employee
◦ If there is a conflict of interest and the purchaser is a HUD employee, an
automated email is sent to the Selling Agent stating that they have 7 days
to upload the HUD Conflict of Interest form
◦ If there is a conflict of interest with one of the purchasers who is not a HUD
employee (i.e., does not have an approved Conflict of Interest form), the
bid is automatically rejected

84. E-Signatures – Bid Submission
Cont. Designated-Signer Requirement (New)
◦ The Selling Agent is required to enter the name of the
individual in their company that is responsible for signing
contracts.
◦ This individual is referred to as the E-Signature Signer or
Designated-Signer
◦ Initially, these fields are populated with the contact information
for the NAID registered broker in HUDHomestore.com. This
information can be changed at this stage of bid submission or
at a later time after a bid is accepted
◦ A Broker Authorization form will be included within the “E-
Signature Additional Instruction” package, which will be sent to
the Selling Broker (Buyer’s Agent) upon bid submission

85. E-Signatures – Bid Submission
Cont.
 Accepted Bids, EMD Upload via “Checklist” Screen:
◦ Once a bid has been accepted by BLB, the Selling Agent will receive an
email letting them know they can check and edit the bid information. If
needed, the signer, purchaser, and Title Company information can be
updated by going into “Accepted Bids” tab on the menu bar of their in
HUDHomestore profile
◦ After the contract is created by the BLB, a Bid Acceptance Final
Verification email will be sent. The Selling Agent will then be able to upload
the EMD check and additional documentation in HUDHomestore under the
“Accepted Bids” tab
◦ Selling Agents seem to be having trouble locating the “Checklist” link.
Once they login to their Bidder account on HUDHomestore, they should
click into “Bidder Functions” and select the “ACCEPTED BIDS” tab from
the menu bar. The “Checklist” link will be located on the right=hand corner
of that screen (refer to screenshot below):

86. E-Signatures – Bid Submission
Cont.
̶ The Buyer Agent MUST upload a copy of the
EMD check and the additional docs from the “E-
Signature Additional Instructions” package as
ONE PDF document into the EMD UPLOAD
option found on the “Checklist” screen
̶ All items that can and should be included are
the following: a copy of the EMD, Proof of
Funds, Electronic Filing Addendum, Agency
Disclosure, Photo ID, PCR Receipt Addendum,
LBP Receipt Addendum (if applicable), Flood
Zone Addendum (if applicable), LLC Articles (if
applicable), Broker Authorization (if applicable)

87. Information needed for Buyers’ Attorney
Buyer will select their attorney for closing. .
Selling agent insures Attorney fills out the BSCA form
Attorney will coordinate with Title company for HUD,
and prepare all necessary closing paperwork
If Attorney has a Title ID # from HUD, enter their Title
ID# on form
If they have not closed a HUD deal recently, Selling
agent needs to obtain from the attorney:
Proof of law firms’ E&O insurance
CT Juris #
Provide the above to LLB, along with BSCA form

88. What Makes An Offer “Sign-able”
A Completely Correct Contract with all
of the required addenda!
A correct social security number MUST
be submitted with the original bid or the
contract WILL be cancelled.

89. FHA and the HUD Appraisal
 Using FHA financing? Buyer will need
to pay for a new appraisal.
 HUD’s appraisal is not available to
the lender.
NOTE: The asset company may
require a submission of proof of
funds when bidding over asking
price.

90. Home Inspections
 HUD highly recommends that your buyer have a home
inspection completed.
 You have 15 days after receiving the seller signed
contract to complete a home inspection
 Contact Field Services firm (BLM) through email from
BLB Resources link
 Buyer agent must get home inspections authorized with
Field Service Manager (FSM) firm prior to inspections.
 Selling agent will work with buyer to turn on utilities,
stay in timeframes, re-winterization fees, etc.
 Remember!! No repairs until after closing!
 Selling agents must accompany buyers, inspectors,
appraisers, etc, to HUD properties prior to closing.

91. Termite Letters
 HUD will provide a termite letter only if:
- State mandated
- FHA financing
 Send request in to the asset manager
 The asset company will order the
inspection; HUD will fund up to $1000 in
treatment and repairs
 If not FHA, the buyer can have an
inspection performed in the 15 day
inspection period at their own cost.

92. Lead Based Paint (LBP) Stabilization
 HUD will complete a LBP assessment
only if all three stipulations exist:
--home was built before 1978
--owner occupant
--FHA financing

93. If LBP test is Positive
Using 203k financing: HUD will credit up to
$4000
If 203b (FHA) financing:
1. HUD will perform stabilization up to $4,000.
2. If >$4,000, buyer has 3 options:
a. Switch to 203k and accept credit as noted above
b. Switch to conventional financing or cash
c. Cancel and receive refund of Earnest Money deposit
(EMD)

94. Contract Extensions
 Sales price $0-$25,000 $10 per day
 Sales price $25,000-$50,000 $15 per day
 Sales price $50,001 or above $25 per day
 Granted in 15 day increments/ must be
submitted in certified funds
 If all 15 days are not used, the unused
amount will be prorated back to buyer and
refunded in escrow.
 The fee (in certified funds, payable to HUD)
and request form must be submitted to
3paddenda@blbresources.com at least 5
days prior to contract expiration.

95. Forfeiture of Earnest Money
 Warn your buyers that they could lose their earnest
money if they fail to close.
 Investors: lose 100% earnest money for failure to
close
 Owner Occupants: Could lose 50% of earnest
money for failure to obtain a loan
 Could lose 100% of earnest money if no
documentation is sent in.

96.  HUD recommends that you complete
a walk thru the day of the closing.
 The lockbox may be removed when
you get to property. Please coordinate
with the listing broker to retrieve the
key.
 Contact the asset manager if there are
any issues.

97. Lender Documents
and the Closing
 Please let the lender know they need
to have all the closing documents to
the HUD closing agent at least 5 days
prior to close.
 Post Closing – Buyers Re-key their
new home immediately at their own
expense.

98. 5 “take-aways” to remember with HUD….
 IN (Insured) and IE (Insured with Escrow) means your buyer can
get an FHA loan on the house.
 IE (Insured with Escrow) is NOT a gift from HUD.
 Earnest Money is made payable to Buyer’s Attorney,
but delivered to Listing broker. Certified check or
money order.
 Docu-Sign is default Contract process, Selling Broker
signs contract, not Agent.
 Buyer does not get keys to the house, needs to
re-key immediately.

99. Resources for Agents
For more information on training
events, procedures, forms:
 www.BLBResources.com
Main Nationwide website
 www.hudhomestore.com
Other sites:
 www.hud.gov

100. Information on FHA Issues/
Lenders/Programs/ Processes
FHA Resource Center
 1-800-CALLFHA ( 1-800-225-5342)
 Email: info@fhaoutreach.com
FHA frequently asked questions website
 www.fhaoutreach.gov/FHAFAQ

101. We need your Feedback !
The feedback, ideas, and concerns from
the Agents are driving the changes that
are needed to make this a smoother
process.

102. Thank you for attending !
Presentation available at:
www.slideshare.net/dkildea
Dan Kildea
Sellstate Leading Edge Realty
Tammy
Boles-Senkewitcz
Asset Real Estate
Cell: 860-823-9426
sellstatelere@gmail.com
Cell: 860-908-4663
tammy@theassetteam.com