HUD Home Buying Process

Effective April 1st, 2016 HUD has started the M&M Contract 3.7 Period. With that comes a few changes. The biggest is that there is now only 1 HUD Asset Manager for our area and that is Sage Acquisitions. We are excited to announce that we have been selected to be a Listing Broker for Sage Acquisitions. They are not new to the HUD game and neither are we. RE/MAX Results and Sage Acquisitions are ready to keep things moving smoothly during the transition period. Below is a layout out their processes and procedures. If you have any questions please contact me for further explanation.

All properties that are actively being marketed are still found at either www.Sageacq.com or www.HUDHomeStore.com.
- If you are an agent make sure that you are registered with  www.HUDHomeStore.com and that all of your information is current. It is too late to check and or change this one a bid has been accepted. 

- Bids are still submitted at www.HUDHomeStore.com. The bid periods are outlined below. 
Insured (IN) and Insured with Escrow (IE) properties:

·    Exclusive listing period is available for owner occupants, HUD non-profits, and government entities only for the first 15 days.

·    Sage Acquisition will not open bids the first 10 days. 

·    Starting on day 11, if no acceptable bids have been received, Sage Acquisitions will opens bids daily.

·    Investors can bid starting on day 16.

·    If opening daily, bids submitted on Friday, Saturday, and Sunday are all considered to have been submitted simultaneously.  If Monday is a Federal holiday, then bids submitted on Monday will also be reviewed the same time as those submitted Friday through Sunday.

 

Uninsured properties (UI - Over $5,000 in work needed to be considered    insurable by FHA)

·    Exclusive listing period is available for owner occupants, HUD non-profits, and government entities only for first 5 days.

·    Sage Acquisitions will not open bids the first 5 days.  All bids submitted are considered to have been received simultaneously and will be reviewed on day 6.

·    Starting on day 6, if no acceptable bids have been received,  Sage Acquisitions will open bids daily.

·    Investors can bid starting on day 6.

·    If opening daily, bids submitted on Friday, Saturday, and Sunday are all considered to have been submitted simultaneously.  If Monday is a Federal holiday, then bids submitted on Monday will also be reviewed the same time as those submitted Friday through Sunday.

Note:  If rollover from Exclusive to Extended period occurs on a Weekend or Federal Holiday, exclusive listing period bids will be opened first and all of those bids would have to be canceled before the Extended listing period bids would be available to Sage Acquisitions to review.

All forms can be found at either www.Sageacq.com or www.HUDHomeStore.com.

  Earnest Money (#3):


Please be sure to include the original Earnest Money with a copy of the sales package and deliver it to the Listing Broker. It must be in the form of a cashier’s check, money order or other certified, non-stoppable funds.  Please make EM payable to the legal name of the selected closing attorney.

 

v $1,000 for offers greater than $50,000,

v  $500 for offers $50,000 or less,

v  50% of the Listing Price for Vacant Lots

  Who Can Sign Contract for the Selling Brokerage (In Blue INK):

v Broker of Record or buyer’s agent on a case by case basis -  IF you have a property specific, recent letter signed by Qualifying broker on company letterhead

  Closing Time Lines (#9):

v 30 Days for Cash

v 45 Days for Conventional, FHA 203B

v 60 Days for a 203K

  Pre-qual or Proof of Funds w/ all contract packages:

v Needs to be on company letter head (bank’s name, address and phone #)

o   Stating that the lender is licensed to be a mortgage lender in GA

o   Have buyer’s name as submitted with bid

o   State credit has been pulled

o   State financial information has been reviewed

o   State maximum loan amount

o   Type of financing (FHA 203B, FHA 203B w/ repair escrow, conventional, USDA, etc)

o   Signed by bank rep

v Letter from a Financial Institution acknowledging that purchaser has funds available for down payment.

v Make sure the lender uses the buyer’s name exactly as they are on the contract when sending the package over to the closing attorney

v Include copy of Driver’s License & Social Security Card

  Appraisals:

v The buyer’s lender will order an appraisal as part of the loan process.

  Inspections:

v  The inspection process (or a link to the Field Services Manager's website which will outline the process) will be sent out with the signed contract. If the buyer decides to complete an inspection with the utilities functioning the form must be signed and submitted to the Field Service Manager (FSM), along with the appropriate payment, the FSM will then contact you. It is the buyer(s) responsibly to pay all applicable fees & have the utilities started once they receive the consent from the FSM.

  Termite Letters:

v HUD’s new policy on termite letters is to only order letters on properties with an accepted offer using FHA financing.  It will be ordered by the Field Service Manager after the contracts have been signed by the seller. Once they received a clear letter they will send it out. (Approximately 7-10 days after you receive seller signed docs.)

  Closing Packages along with the Insurance Declaration Page are due to Closing Attorney’s office no later than 12:00 p.m. 5 Business Days Prior to Closing

  Extensions:  Extension Request forms MUST be received by Sage Acquisitions within 5 business days prior to the contract expiration date along with a certified funds check for the extension request fee. If you think you are going to need an extension, for any reason,  go ahead a fill out the extension request form & send it in along with the certified funds, made payable to HUD to the address below.

  Keys:   Buyers do not get a copy of the HUD key.

v  The buyer’s agent should work with the listing agent to gain access to the home after the closing has been completed. The buyer will then be allowed to either re-key the existing locks or change out the locks.  The agent should not give a key to the buyer.

Other Possible items to include (these forms can either be found along with the HUD 9548 Sale Contract under the addendum's tab at www.Sageacq.com or at www.hudhomestore.com):

v  Lead Paint Addendum, if the property was built prior to 1978. The Lead Based Paint Addendum is property specific and will be posted with the property listing.

v  Notice to Purchaser and Acknowledgement

v  For your Protection: Get a Home Inspection

v  Notice to Purchaser Addendum when the offered amount exceeds the appraised value at the time the offer is submitted.

v  Certification of Owner-Occupant, if purchaser is an owner-occupant.

v  Buyer Select Closing Agent Form – Signed by attorney (the attorney’s signature does not have to be original)



Consider Bobby's Group, Inc at RE/MAX Results a resource for your HUD questions. Give us a call if you need assistance or further explanation of  any of the items above.