Hud Listing Broker Presentation

1,997 views

Published on

Published in: Real Estate, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,997
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
26
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • I hate maria
  • The Principal Broker will select “Principal Broker with NAID” from the “Role” box.
  • To complete the setup process, read and check the box accepting the “Terms and Conditions,” then enter the security code characters, and click “Submit.” Please note that the security code characters are case-sensitive.
  • When bidder setup has completed successfully, you will be returned to the bidder page as shown and your name will appear in the upper right hand corner.
  • IN – properties with MPS repairs totaling $250 or less will be listed as IN and will not include those MPS repairs. IE – lender holds the repair escrow money until repairs are completed (within 90 days after closing) and is responsible for disbursing the funds to the appropriate parties. The escrow repair amount only applies to FHA 203(b) financing. These properties may also qualify for 203(k) financing
  • Note: Addendum not previously approved by Seller may not be made a part of this contract. Approved addendum must be signed by, and in the same style as, those signing as Purchaser(s)
  • Note: Addendum not previously approved by Seller may not be made a part of this contract. Approved addendum must be signed by, and in the same style as, those signing as Purchaser(s)
  • Please note: “Daily bids submitted on Friday, Saturday and Sunday will be reviewed on the next business day in order of received date” – i.e. bids received Friday night are reviewed Monday morning, if no acceptable bids then Saturday bids are reviewed, if no acceptable bids then Sunday bids are reviewed.
  • Unused extension fees will be prorated to purchaser and refunded by escrow – i.e. if 10 days out of 15 day extension are used, the remaining 5 days will be refunded to the buyer.
  • This list is not all-inclusive, agents may advertise in any media as long as they follow the guidelines in the previous slides.
  • Hud Listing Broker Presentation

    1. 1. <ul><li>Presented by: </li></ul>
    2. 2. How to Successfully Sell HUD Homes <ul><li>HUD Home Overview </li></ul><ul><li>Who Can Buy and Sell HUD Homes? </li></ul><ul><li>NAID & Broker Registration </li></ul><ul><li>Bidding and Submitting Offers </li></ul><ul><li>Sales Contracts </li></ul><ul><li>Advertising HUD Homes </li></ul>
    3. 3. What is the M&M Program? <ul><li>An outsource program to manage and sell a large number of HUD properties </li></ul><ul><li>4 Home Ownership Centers (HOCS) located in Philadelphia, PA; Atlanta, GA; Denver, CO; and Santa Ana, CA </li></ul>
    4. 4. M&M III – New Contract as of 7-31-10 <ul><li>Field Service Managers (FSM) – Private companies contracted by HUD to maintain, inspect and repair assigned properties </li></ul><ul><li>Asset Managers (AM) – Private companies (not affiliated with FSM’s) who will be responsible for marketing and selling the homes </li></ul>
    5. 5. What is a HUD Home? <ul><li>An FHA insured mortgage that has gone into default </li></ul><ul><li>Lender acquires property, submits FHA insurance claim, then conveys ownership to HUD </li></ul><ul><li>HUD will then sell the home through their Asset Manager (AM), BLB Resources </li></ul><ul><li>A HUD Home can be a Single Family Residence (SFR), Townhome, Condominium or other type of residence up to 4 units </li></ul>
    6. 6. What is a HUD Home? <ul><li>Not This! </li></ul>
    7. 7. HUD Home <ul><li>Lidford, La Puente </li></ul>
    8. 8. HUD Home <ul><li>Linda Court, Temecula </li></ul>
    9. 9. Who can buy a HUD Home? <ul><li>Individuals and investors, HUD-approved non-profit organizations or government entities </li></ul><ul><li>Buyers who can secure a loan or pay cash to secure real estate </li></ul><ul><li>Pre-qualification letter from lender or proof of cash funds is required </li></ul><ul><li>Priority is given to owner occupants </li></ul>
    10. 10. Who is an owner occupant? <ul><li>Buyer purchasing property as primary residence for at least 12 months after close of escrow </li></ul><ul><li>Buyer has not purchased a HUD Home as an owner occupant within the past 24 months </li></ul>
    11. 11. Good Neighbor Next Door (GNND) <ul><li>Designated properties in Revitalization areas available at 50% discount of list price to: </li></ul><ul><ul><ul><li>Officers </li></ul></ul></ul><ul><ul><ul><li>Teachers </li></ul></ul></ul><ul><ul><ul><li>Emergency Medical Techs </li></ul></ul></ul><ul><ul><ul><li>Firefighters </li></ul></ul></ul><ul><ul><li>Properties must be located in the area or district where the GNND participant works or services </li></ul></ul>
    12. 12. GNND Participation and Stipulations <ul><li>Buyer must meet HUD’s eligibility requirements </li></ul><ul><li>Buyer signs a second mortgage and note for the discounted amount of the list price </li></ul><ul><li>No interest or payments are required on “silent second” if buyer fulfills the three-year occupancy requirement </li></ul><ul><li>Additional addenda are required for these sales </li></ul><ul><li>Neither buyer nor his/her spouse may have owned any residential property during the year prior to the date of submitting a bid on the home intended to purchase </li></ul><ul><li>Neither buyer nor his/her spouse may have ever purchased another home under the GNND sales program </li></ul>
    13. 13. CAUTION: <ul><li>Falsifying information regarding Owner Occupant Status is considered a felony and is punishable by a fine not to exceed $250,000 and/or a prison sentence of not more than 2 years (18 U.S.C. 1010, 3559; 3571) </li></ul><ul><li>Buyers, Local Listing Brokers and Selling Brokers can all be investigated by HUD </li></ul>
    14. 14. Who can sell a HUD Home? <ul><li>Any licensed real estate broker registered with HUD or an agent employed by a HUD registered broker </li></ul><ul><li>A NAID is required to submit a bid but is not required to show a HUD Home </li></ul><ul><li>Broker and agent must also register to bid on www.HUDHomestore.com </li></ul>
    15. 15. How do I show a HUD Home? <ul><li>Homes are vacant with a standard MLS lockbox at the time of listing </li></ul><ul><li>If keys are missing from lockbox, please contact the LLB to have it replaced </li></ul><ul><li>Please note that all purchasers must be accompanied by a state licensed broker or agent when viewing any HUD Home </li></ul>
    16. 16. Broker NAID Registration
    17. 17.
    18. 18. Please include the following with your completed forms: <ul><li>IRS documentation OR Social Security Card </li></ul><ul><li>Copy of Driver’s License </li></ul><ul><li>Copy of Real Estate Broker’s State License </li></ul><ul><li>Copy of first page of a recent telephone bill, utility bill or bank statement </li></ul>
    19. 19. Registration to bid on www.HUDHomestore.com <ul><li>Each selling broker and agent must register as a bidder </li></ul><ul><li>Principal broker of office must first have a valid NAID and completed the registration process before associate brokers and selling agents register </li></ul><ul><li>Broker cannot register with more than one NAID per state license </li></ul><ul><li>If there are several agents in different locations that want to register, all must register under a single NAID </li></ul>
    20. 20. <ul><li>Click the “Bidder” link under the “Register” heading on the upper right hand corner of the page </li></ul>
    21. 21. <ul><li>Fill in the required fields, including selecting a user name, password, and security questions </li></ul>
    22. 22. <ul><li>Principal Broker, Associate Brokers, and Selling Agents select “Selling Broker” in the “NAID Type” box. </li></ul>
    23. 23. <ul><li>Enter contact information, accept terms, enter security code & submit. </li></ul>
    24. 24. <ul><li>A message will display showing a successful setup, or advising of needed corrections. If needed, make corrections and submit the form again. Otherwise, click “OK” button to return to the bidder page. </li></ul>
    25. 25. How can I find available HUD Homes? <ul><li>Daily (Mon. – Sat.) listings are featured on: </li></ul><ul><li>www.HUDHomestore.com </li></ul><ul><li>Local MLS Boards </li></ul>
    26. 26. HUD Home Process <ul><li>Prior To Listing: </li></ul><ul><ul><li>Field Service Manager (FSM) inspects property and ensures it is “Ready to List” </li></ul></ul><ul><ul><li>BLB Resources orders an Inspection and “AS-IS” FHA appraisal to determine the list price </li></ul></ul>
    27. 27. HUD Home Process (cont…) <ul><ul><li>After property is listed: </li></ul></ul><ul><ul><li>Local Listing Broker (LLB) lists property in MLS </li></ul></ul><ul><ul><li>A licensed broker/agent shows the property. HUD registered selling brokers submits bid electronically </li></ul></ul><ul><ul><li>BLB Resources reviews bids for acceptability </li></ul></ul><ul><ul><li>Brokers for accepted offers will be notified by www.HUDHomestore.com </li></ul></ul>
    28. 28. Financing types <ul><li>IN (Insurable) – Qualifies for FHA 203(b) financing and do not have Minimum Property Standard (MPS) repairs, may qualify for 203(k) financing, a rehabilitation loan for owner occupants only </li></ul><ul><li>IE (Insurable with Escrow) – Qualifies for FHA 203(b) with Repair Escrow, and has MPS repairs of $5,000 or less (plus 10% margin). Repair escrow is buyer’s financial responsibility, added to the FHA loan, is never a credit to the buyer, and does not apply if 203(b) financing is not available and utilized </li></ul>
    29. 29. Financing Types (cont…) <ul><li>UI (Uninsurable) – these properties do not qualify for FHA 203(b) financing. Typically, these properties have MPS repairs exceeding $5,000 or may not meet other guidelines for FHA financing </li></ul><ul><li>UK (Uninsurable, 203(k) Eligible) – these properties do not qualify for FHA 203(b) financing, but may qualify for 203(k) or 203(k) streamline financing </li></ul>
    30. 30. www.hudhomestore.com
    31. 31. Insured in Escrow IE
    32. 32. Addendum Tab
    33. 33. <ul><ul><li>All Uninsured ( UI ) and Uninsured – 203(k) eligible ( UK ) properties are assigned to the lottery program for 7 days </li></ul></ul><ul><ul><li>Properties in designated Revitalization areas also assigned to lottery program </li></ul></ul><ul><ul><li>These properties are only available for Good Neighbor Next Door (GNND) participants, HUD approved Non-Profit organizations and government entities </li></ul></ul>Lottery & GNND Program
    34. 34. Lottery Bidding Process <ul><li>Listed and sold exclusively through HUDHomestore.com – not found on MLS </li></ul><ul><li>Must submit full priced offers </li></ul><ul><li>HUD does not pay closing costs or commissions for these sales </li></ul><ul><ul><li>Neither listing agent nor selling agent will receive a commission unless you sell the property to a GNND participant, with a separate negotiated commission agreement between you and the buyer </li></ul></ul>
    35. 35. How are Bids Reviewed? <ul><li>IN/IE Properties – Owner Occupant bids received by 10 th day of listing will be reviewed on the 11 th day. If no bids are accepted, owner occupant bids will be reviewed daily until bid is accepted or until the 30 th day. Then all bidders may submit bids daily until sold </li></ul><ul><li>UI/UK Properties – Owner Occupant bids received by 5 th day of listing will be reviewed on 6 th day after listing. If no bids are accepted, then all bidders including investors may submit bids daily until sold </li></ul><ul><li>Daily bids submitted on Friday, Saturday and Sunday or Govt. holidays will be reviewed on the next business day in order of received date </li></ul>
    36. 36. <ul><li>Remember Bids can only be submitted through HUD’s website, www.HUDHomestore.com </li></ul><ul><li>Brokers must have an active NAID number </li></ul><ul><li>The broker and agent must be registered with www.HUDHomestore.com </li></ul>
    37. 37. HUD Sales Contract <ul><li>Please download the electronically fillable sales contract package from the “Addendums” tab on www.HUDHomestore.com </li></ul><ul><li>or from www.blbresources.com </li></ul><ul><li>When data is entered on the first page, it will auto-populate the appropriate fields of the sales contract package. </li></ul>
    38. 38.
    39. 39. <ul><li>Upper right hand box: Please type the FHA Case Number </li></ul><ul><li>Line 1: Please type in the purchaser(s) name(s) and complete property address of the property they are purchasing. Remember to include the county. </li></ul>
    40. 40. Line 2: Please enter name(s) and style in which title will be taken. Common examples of style in which title may be taken include: A single man/woman Joint tenants with right of survivorship Community property Tenants in common Please advise your client to seek legal counsel if they have questions regarding the style in which they should take title.
    41. 41. <ul><li>Line 3: Please enter purchase price and amount of earnest money deposit. </li></ul><ul><ul><li>Purchase price of $50,000 or less, the EMD is $500 </li></ul></ul><ul><ul><li>Purchase price of $50,001 or more, the EMD is $1,000 </li></ul></ul><ul><ul><li>For vacant lots or sales less than $500, the EMD is 50% of the sales price </li></ul></ul><ul><li>Please also indicate that the earnest money deposit shall be held by HUD’s Designated Closing Agent . </li></ul>
    42. 42. <ul><li>Must be certified funds </li></ul><ul><ul><li>In AK, CA, HI, OR and WA, funds must be a Cashier’s check from a bank or a US Postal Money order. Checks from credit unions, Western Union, Money Gram, etc. are not acceptable. </li></ul></ul><ul><li>Made payable to: “ HUD or (Purchaser’s Name) ” </li></ul><ul><ul><li>This way, if transaction is not consummated, buyer could more easily cash the check </li></ul></ul>Earnest Money Deposit (EMD) Please also reference the property address and FHA Case Number .
    43. 43. <ul><li>The lines for down payment amount, mortgage amount, months and repair escrow amount should be left blank . </li></ul>Line 4: Check the appropriate box. If purchaser is obtaining FHA insured (203b) financing , the following boxes should be checked:
    44. 44. <ul><li>The lines for down payment amount, mortgage amount and months should be left blank. The repair escrow amount should match what is featured on the property details on www.HUDHomestore.com . </li></ul>Line 4: If purchaser is applying for FHA insured financing with a repair escrow , the following boxes should be checked:
    45. 45. <ul><li>The lines for down payment amount, mortgage amount, months and repair escrow amount should be left blank. </li></ul>Line 4: If purchaser is applying for 203(k) financing , the following boxes should be checked:
    46. 46. <ul><li>The boxes for FHA insured financing and the lines for down payment amount, mortgage amount, months and repair escrow amount should be left blank. Please circle cash or conventional , as appropriate. </li></ul>Line 4: If purchaser is paying cash or applying for non-FHA financing (i.e. conventional mortgage loan, VA, Rural Development, etc.), the following box should be checked:
    47. 47. <ul><li>Line 5: Please enter requested closing costs, up to 3% of the purchase price. </li></ul><ul><li>HUD will pay up to 3% towards a buyer’s closing costs. All costs will be paid in full compliance with the guidelines provided in HUD Notice H 2003-02 </li></ul><ul><li>* Note: If line 5 exceeds actual and typical allowable financing and/or closing costs, such excess shall not be paid by Seller and may not be used by Purchaser to reduce amount(s) owing to Seller. </li></ul>
    48. 48. Closing Costs Paid Automatically by HUD <ul><ul><li>Proration of property taxes and any special assessments such as HOA fees, utility bills </li></ul></ul><ul><ul><li>Settlement or closing fee: HUD will pay HUD’s closing agent, however buyer is responsible for cost if an additional title company is used on the buyer’s behalf </li></ul></ul><ul><ul><li>Recording fees and charges for the deed (i.e., normal amount charged per page for recordation) </li></ul></ul><ul><ul><li>Condominium or HOA Transfer Fee and Document Fee – HUD will NOT pay for a lender’s certification </li></ul></ul>
    49. 49. <ul><li>Line 6a: Selling agent commission up to $1,250 or 3% of the purchase price. This must be the same commission entered at the time the bid was submitted. </li></ul><ul><li>Line 6b: Listing agent commission $1,250 or 3% of the purchase price. </li></ul><ul><li>Please note that the selling agent may reduce their commission, but the listing agent commission may not be reduced. </li></ul>
    50. 50. Commission Restrictions <ul><ul><li>Only licensed, NAID registered real estate brokers and their agents can receive commissions on HUD Home sales </li></ul></ul><ul><ul><li>Commission entered by the selling broker on the electronic bid must match the commission on the sales contract </li></ul></ul><ul><ul><li>Both closing costs and commission amounts must be shown on the contract and be deducted from the purchase price, reducing the NET to HUD .. </li></ul></ul><ul><ul><li>Just a tip HUD home are awarded based on NET to HUD.. </li></ul></ul>
    51. 51. <ul><li>Line 7: Subtract Lines 5, 6a and 6b from Line 3 to determine the net amount due to HUD and enter on this line. </li></ul><ul><li>Line 8: Check the appropriate box for occupancy , as submitted in the bid. Unless purchaser is a nonprofit or government agency, the discount amount should always be blank. If purchaser is a nonprofit or government agency, enter the appropriate discount percentage. </li></ul>
    52. 52. <ul><li>Line 9: Please enter 45 days , unless purchaser is obtaining 203k financing , then enter 60 days . </li></ul><ul><li>Line 10: Check the appropriate box for back-up status . </li></ul><ul><li>Line 11: If property was built prior to 1978 , check the box for LBP is attached, if built in 1978 or later, check box for is not attached. </li></ul><ul><li>The box for “ Other Addendum is attached ” must always be checked. </li></ul>
    53. 53. <ul><li>Line 12: Purchaser(s) must initial on Purchaser(s) line. Please do not initial on Seller’s line. </li></ul><ul><li>If there is more than one Purchaser, please remember to have all Purchasers initial . </li></ul>
    54. 54. <ul><li>Line 13: Purchaser information: </li></ul><ul><ul><li>Please remember to type or print Purchaser(s) name(s) </li></ul></ul><ul><ul><li>SIGNATURE(S) – All Purchaser(s) signatures are required </li></ul></ul><ul><ul><li>Social Security Number or EIN/FIN for ALL Purchaser(s) </li></ul></ul><ul><ul><li>Purchaser(s) address and phone number </li></ul></ul><ul><ul><li>Date contract was signed </li></ul></ul><ul><li>Please DO NOT have Purchaser(s) sign on the “Seller” line or in the “Authorizing Signature & Date:” box. This is to be used by the authorized HUD signing agent ONLY . </li></ul>
    55. 55. <ul><li>Broker or authorized branch manager must sign, not selling agent </li></ul><ul><li>AND </li></ul><ul><li>MUST BE SIGNED IN BLUE INK Signature stamps are NOT acceptable </li></ul><ul><li>ALL this needs to be done by 11:59 PM CST by the bid deadline date </li></ul>
    56. 56. Conditions of Sale must be signed by the purchaser(s)
    57. 57. If Purchaser is a licensed Real Estate Agent or Broker, Purchaser must check the first line. If not, check the second line. Both the Purchaser(s) and the broker must sign.
    58. 58. <ul><li>Please enter the FHA Case number and property address at the top of the Radon Gas and Mold Notice. </li></ul><ul><li>Purchaser(s) must date, sign and print name at the bottom. </li></ul>
    59. 59. <ul><li>If Purchaser(s) is an owner-occupant, complete the Owner-Occupant Certification addendum. </li></ul><ul><li>Broker must also sign and date. </li></ul>
    60. 60. <ul><li>Please fill in the FHA Case number and property address at the top of the first page. </li></ul><ul><li>Please enter an overnight account number on page 2 , if desired. If no account number is entered, earnest money will be returned via certified mail. </li></ul><ul><li>Purchaser(s) must sign and date the bottom of page 3. </li></ul>HUD Forfeiture and Extension Policy
    61. 61. Purchaser(s) must choose whether they wish to have a home inspection performed .
    62. 62. <ul><li>If property was built prior to 1978, the 3-page LBP Disclosure form must be downloaded from the “Addendums” tab of the property details on HUDHomestore.com. </li></ul><ul><li>Selling Broker must initial one of the 3 financing types: </li></ul><ul><ul><li>No FHA Financing </li></ul></ul><ul><ul><li>Any FHA Financing Except 203k </li></ul></ul><ul><ul><li>FHA 203k Financing </li></ul></ul><ul><li>Purchaser(s) must initial 2 acknowledgements on page 3, Selling Broker to initial 3 rd acknowledgement. </li></ul><ul><li>Both Purchaser(s) and Selling Broker must sign page 3. </li></ul>Lead Based Paint (LBP) Disclosure
    63. 63. Do I need a Pre-Qualification letter to submit a bid? <ul><li>Yes! Purchaser(s) must have a pre-qualification letter or pre-approval letter from a lender </li></ul><ul><li>If this is a cash sale, verification of cash funds is required AND you should have EMD </li></ul><ul><li>EMD must be cashier’s check or U.S. Postal Money Order with no termination date or cancellation provision (no Money Gram or Western Union money orders accepted), MUST be payable to “HUD or (insert Buyer’s Name)” </li></ul><ul><li>Please have these documentations prior to placing your bid </li></ul>
    64. 64. <ul><li>Bids are accepted based on HUD’s guidelines which include considering the highest net, not the highest offering price </li></ul><ul><li>An owner occupant may bid on more than one property, however , BLB Resources will award only one acceptable bid that is in the best interest of HUD. </li></ul>How are Bids Accepted?
    65. 65. How will I be notified if my bid is accepted? <ul><li>When BLB Resources accepts a bid, the selling agent who submitted the winning bid will be notified by www.HUDHomestore.com </li></ul><ul><li>If your bid is not accepted it will be noted as Cancelled in the system. </li></ul><ul><li>Back up offers We hold backup offers where the bids meet the acceptable threshold based on the net to HUD, but were not the highest </li></ul><ul><li>In the event the winning bid cancels, the first backup will be notified to submit the sales contract package </li></ul><ul><li>BLB Resources will also endeavor to notify the agent by e-mail or a phone call.. In trying to help with the newness of selling HUD homes you might also get a phone call from the LLB, like me, to congratulate you and offer any assistance. </li></ul><ul><li>Currently all other bidders are not notified </li></ul>
    66. 66. HUD Home Process (cont…) <ul><li>If bid is accepted: </li></ul><ul><li>Signed sales package with EMD is sent to BLB Resources, Irvine, CA office within 2 business days </li></ul><ul><li>EMD must be cashier’s check or U.S. Postal Money Order with no termination date or cancellation provision (no Money Gram or Western Union money orders accepted), payable to “HUD or (insert Buyer’s Name)” </li></ul><ul><li>BLB Resources reviews package, requests corrections accordingly and ratifies contract </li></ul>
    67. 67. Where do I deliver or mail my contract & addenda, if I have the winning bid? <ul><li>Please deliver the original signed sales contract and addenda along with agency disclosure from your brokerage to BLB Resources within 2 business days </li></ul><ul><li>BLB Resources – California Office </li></ul><ul><li>16845 Von Karman Ave, Suite 100 </li></ul><ul><li>Irvine, CA 92606 </li></ul><ul><li>(800) 960-2526 </li></ul><ul><li>Attn: Sales Manager </li></ul>
    68. 68. Buyer’s Home Inspection <ul><li>BLB Resources recommends the purchaser retain the services of a home inspection company </li></ul><ul><li>The purchaser has 15 days from contract ratification to conduct a home inspection </li></ul><ul><li>Utilities may be turned on for up to 72 hours for buyer’s inspection, at buyer’s expense </li></ul><ul><li>Deposits and fees for activating utilities may be required by the FSM – please contact BLB Resources for further instructions </li></ul>
    69. 69. <ul><li>Please view the “Agent Info” tab of the Property Details on www.HUDHomestore.com for the FSM assigned to the property. </li></ul><ul><li>If Purchaser chooses to have a home inspection performed, contract package must also include a copy of the completed FSM’s utility activation/home inspection form provided. </li></ul><ul><li>Original utility request form and deposit (if applicable) must be sent to FSM after contract ratification. </li></ul><ul><li>Purchaser’s inspection may not be done until the signed form is returned from the FSM. </li></ul><ul><li>It is still Purchaser’s responsibility to activate utilities. BLB Resources or the assigned FSM will not activate utilities. </li></ul>FSM Inspection Request Forms
    70. 70. HUD’s As-Is Policy <ul><li>HUD makes NO representations or warranties concerning the condition </li></ul><ul><li>of the property and will make </li></ul><ul><li>NO repairs to the property. </li></ul>
    71. 71. To obtain a copy of the appraisal <ul><li>Copies of the appraisal will be available to the winning bidder’s broker and lender </li></ul><ul><li>Complete the required request form and submit with sales contract package to BLB Resources </li></ul><ul><li>Or fax to (949) 379-2896 or email to [email_address] </li></ul>
    72. 72. <ul><li>Yes, a termite inspection will be ordered at contract ratification if property meets one of the following requirements: </li></ul><ul><li>Property located in area where Wood Destroying Organism Inspections are mandated by state or local jurisdictions </li></ul><ul><li>FHA insured financing is being used, and property is located in a Termite Probability Zone – please visit: www.hud.gov/offices/hsg/sfh/ref/sfh1-23a.cfm </li></ul>Will Seller provide a termite inspection?
    73. 73. How can I Cancel my Client’s Bid? <ul><ul><li>Prior to bid acceptance, agents may cancel, modify or withdraw bids by logging in on www.HUDHomestore.com </li></ul></ul><ul><ul><li>After bid acceptance, please complete the cancellation request form available on www.blbresources.com Fax to (949) 379-2896 or email to [email_address] </li></ul></ul><ul><ul><li>Signed cancellation form with reason and supporting documentation </li></ul></ul><ul><ul><li>If no documentation is submitted with the Cancellation Request form, the EMD will be automatically forfeited </li></ul></ul><ul><ul><li>When BLB Resources receives a cancellation request, we will process the request within 2 business days </li></ul></ul>
    74. 74. What is the extension policy? <ul><li>15-day increments only </li></ul><ul><li>If sale fails to close for any reason, the extension fee is forfeited, even if a portion or all of the earnest money is refunded </li></ul>Gross Sales Price Fee per day Extension Fee $24,999 or less $10 $150 $25,000 to $49,999 $15 $225 $50,000 or more $25 $375
    75. 75. Prior to Close of Escrow, Buyers May NOT: <ul><li>Do home improvements, repairs or landscape modifications </li></ul><ul><li>Occupy the property </li></ul><ul><li>Change any locks </li></ul><ul><li>Store personal property on the premises </li></ul><ul><li>AND do not give your buyer a key at closing. </li></ul><ul><li>These actions are strictly prohibited , are a breach of contract , and may be grounds for cancellation of the sale and forfeiture of the EMD </li></ul><ul><li>Purchasers should be advised that they are responsible for re-keying the locks of the property immediately after closing for their own security </li></ul>
    76. 76. HUD Home Process (cont…) <ul><li>Closing : </li></ul><ul><ul><li>Either sale closes at Closing Agent’s office or package is emailed out for signatures </li></ul></ul><ul><ul><li>Title transferred to new owner </li></ul></ul><ul><ul><li>Buyer is responsible for rekeying the property after the close of escrow </li></ul></ul><ul><ul><li>LLB will remove all signage </li></ul></ul>
    77. 77. <ul><li>Yes! Any agent may advertise HUD Homes. Please abide by the following guidelines: </li></ul><ul><li>Advertise HUD homes in a professional, ethical and positive manner </li></ul><ul><li>Please refer to properties as “HUD Homes,” “HUD-owned,” or “HUD-acquired” </li></ul><ul><li>Always include the Equal Housing Opportunity Logo and/or statement on any and all advertising, including signage, websites, flyers, etc. </li></ul>May I advertise HUD Homes?
    78. 78. <ul><li>Note any flood plain zones, or other warning information as it appears on the property’s Internet listing, if applicable </li></ul><ul><li>Adhere to all federal, state, county, city and real estate commission advertising regulations and the Truth-in-Lending Act when advertising HUD Homes </li></ul><ul><li>When showing HUD Homes, always secure the property (all doors, windows, etc.) Please put the key back in the lockbox </li></ul>Advertising Guidelines
    79. 79. <ul><li>Advertise homes before they are listed for sale to the general public </li></ul><ul><li>Use HUD or FHA in your URL </li></ul><ul><li>State or imply the price of the property differs from the list price shown on the HUD website </li></ul><ul><li>Do not give out the HUD keys </li></ul>Things NOT to Do
    80. 80. <ul><li>Refer to or advertise HUD Homes as “distressed,” “repo,” “foreclosed,” “repossessed,” “must sell” or any other adjectives with notable negative connotation </li></ul><ul><li>Place signage in/on any HUD property (except LLBs) </li></ul><ul><li>Destroy, damage, or remove the advertising or signage of another HUD-registered selling or listing agent </li></ul>Things NOT to Do
    81. 81. Where Can I Advertise?

    ×