1. How to Bid on HUD-Owned Properties
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all
Presented by:
Sherry Ludecker

2. U.S. Department of Housing and Urban
About HUD
HUD's mission:  To create strong, sustainable, inclusive communities and quality affordable homes for all. 
Replaced Hope VI Often include demolition and new construction
Former Home Before and After Renovation
Cedar St, Bluff City TN
U.S. Department of Housing and Urban
Development

3. U.S. Department of Housing and Urban Development
A Team Effort...
The U.S. Department of Housing & Urban Development
Appraisal Company
Field Service Management Company
Asset Management Company
Local Listing Broker
Selling Agent
U.S. Department of Housing and Urban Development

4. What to Know Before You Show
Read The MLS Comments and Instructions
Make An Appointment
Electronic Key Box Access
Utilities Are NOT On!
U.S. Department of Housing and Urban Development

5. What to Know Before You Show
Visit
and Look Up the Property.
Verify Eligible Bidders:
Owner Occupants
Nonprofits / Government Agencies
Submission Deadlines
U.S. Department of Housing and Urban Development

6. What to Know Before You Show
Check The Addendums
Review The Property Condition Report
U.S. Department of Housing and Urban Development

7. What to Know Before You Show
Repair Costs Can Range From Small to Large!!
Review The MPR Report
U.S. Department of Housing and Urban Development

8. "IE"- Insured Escrow vs. "UE" Uninsured Escrow
Click to add text
Click to add text
Repairs:  $4,125
U.S. Department of Housing and Urban Development

9. "IE"- Insured Escrow vs. "UE" Uninsured Escrow
Click to add text
U.S. Department of Housing and Urban Development

10. U.S. Department of Housing and Urban Development
FHA 203K &  203B Loans
FHA 203B Loans and FHA 203B with a Repair Escrow
      Loan for purchase  or purchase plus the cost of making the repairs and
      improvements
FHA 203K Loans
      For properties needing more than $5,000 in repairs
**NO REPAIRS CAN BE MADE
 TO A HUD PROPERTY PRIOR TO CLOSING**
U.S. Department of Housing and Urban Development

11. U.S. Department of Housing and Urban Development
Cash & Loan Types
Cash
Conventional
FHA 203B   &   FHA 203K
Repair Escrow Loan Programs VA
USDA
U.S. Department of Housing and Urban Development

12. Info You Will Need Before Placing a Bid
Your Brokers NAID Number
Your License Number
Clients Name, Address and Social Security Number.
Loan Type or Cash?
Name and Contact Information of Your Closing Agent/Agency
U.S. Department of Housing and Urban Development

13. Placing a HUD Bid Step by Step
Visit
Login OR
Click Bidder
U.S. Department of Housing and Urban Development

14. Placing a HUD Bid Step by Step
The Bidder Registration Page Will Open
Fill Out All
Required Info
Marked With*
U.S. Department of Housing and Urban Development

15. Bidding Points to Know:
HUD will pay a 3% Selling Agent Commission or a Flat Rate Commission- Refer to the Listing
HUD will pay up to 3% in Buyer Closing Costs for Owner-Occupant Buyers
HUD considers the NET Offer Your Submit
U.S. Department of Housing and Urban Development

16. U.S. Department of Housing and Urban Development
An Accepted HUD Bid
U.S. Department of Housing and Urban Development

17. U.S. Department of Housing and Urban Development
An Accepted HUD Bid
If Your Client's Bid Gets Accepted You Will Receive an From the Asset Management Company
Collect the Buyer's Proof of Funds or Preapproval Letter  and Earnest Money
Both Documents Must Be Uploaded onto
U.S. Department of Housing and Urban Development

18. U.S. Department of Housing and Urban Development
Earnest Money
You Will Have 2 Business Days to Turn in Earnest Money to The Listing Broker 
NO PERSONAL CHECKS ARE ACCEPTED!!
Earnest Money Checks Must Be A Certified Check or Money Order Made out to the Listing Brokerage.
U.S. Department of Housing and Urban Development

19. U.S. Department of Housing and Urban Development
Earnest Money Amounts
Sale Prices up to  $50,000  = $500
Sale Prices over    $50,000  = $1,000
Sale Prices over $250,000   = $2,000
Vacant Lots  = Half of List Price
U.S. Department of Housing and Urban Development

20. If Your Bid Is NOT Accepted...
If Your Clients Bid Does Not Get Accepted You May Not Receive any Notification.
You May Receive a Counter Offer
U.S. Department of Housing and Urban Development

21. The Contract Documents
HUD uses Electronic Documents
Electronic Signing Through DocuSign
Selling Agent Approves
Buyer(s) Signs
Selling Broker Signs
Closing Agent Signs
Ask a Question for program answers, like NSP
U.S. Department of Housing and Urban Development

22. State Contract Forms / TAR Forms
HUD Does NOT Sign or Accept any State Real Estate Forms ie. Tennessee Association of Realtor Forms.
State Real Estate Forms to  Create
 for Broker Files:
Confirmation of Agency
Disclaimer
U.S. Department of Housing and Urban Development

23. Utility Activations – Inspections - Appraisals
The Field Service Manager MAY allow utilities to be turned on for Inspections and Appraisals
Instructions for How to Request Permission to Turn On Utilities is Provided Upon Bid Acceptance
The Task AND Expense of Utility Activation is on the Buyer and/or Buyer's Agent
U.S. Department of Housing and Urban Development

24. U.S. Department of Housing and Urban Development
Closing the Deal!
Cash Contracts are Given 30 days to Close
Financed Contracts are Given 45 Days to Close
A 15 Day Contract Extension May be Requested Through the Asset Manager.  Fees Apply Unless Waived by the AM.
U.S. Department of Housing and Urban Development

25. U.S. Department of Housing and Urban Development
Closing Coordination
The Buyer-Selected Closing Agency will work with the HUD Asset Manager to get the Contract Approved for Closing
HUD Keys Will NOT
    be Given Out at Closing.
The Selling Agent Must Assist the Buyer to Get the Locks Changed Immediately After Closing so that HUD Keys Can be Returned to the HUD Listing Agent.
U.S. Department of Housing and Urban Development

26. U.S. Department of Housing and Urban Development
Questions
U.S. Department of Housing and Urban Development