Successfully Selling HUD Homes
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Transcript of Successfully Selling HUD Homes
Successfully Selling HUD Homes WebinarDunamis Realty Group
Dunamis Realty Group6507 Jester Blvd.
Suite 507Austin, TX 78750
Tel. 512.372.8113 / 1.877.773.0007Fax. 512.372.4858
Email: [email protected]@DunamisRealty.com
Kim Bramlette, CRS, SFRBroker/Owner
Direct # 512.705.1932Office # 512.372.8113 or
1.877.773.0007E-mail: [email protected]
Office Location:6507 Jester Blvd. Suite 507
Austin, TX 78750
Contact Information
* Changes to HUD Contract HomeTelos, Matt Martin Real Estate Management & Pemco, LTD.
Have replaced Southwest Alliance
* www.HUDHomeStore.com Place all bids on site Register under a HUD Certified Broker (Broker Must be
registered first)
• Exclusive Owner-Occupant Period• Earnest Money MUST be submitted with the Contract• Up to 3% Buyers Agent Commission• Up to 3% Closing Cost
What's NEW with HUD?
Effective 10/20/2011Denver Home Ownership Center has approved a FHA $100 Down Payment Sales incentives for the
NEXT 12 MONTHS!
Bid Requirements: (Must have all 3, only applies to HUD Properties) Owner Occupant Purchases FHA Insured Financing Only Full Price bids based on current list price
Properties awarded bids prior to 10/20/2011 are not eligible for this incentive.Loan amount cannot exceed the full appraised value.
FHA $100 Down Payment Program is BACK!!
* Property that was originally insured by FHA when Purchased.
* If the owner of a FHA insured loan defaults, the Bank/Lender forecloses and files a claim with HUD. HUD did not foreclose on owner.
* The Federal Government established HUD (U.S. Department of Housing and Urban Development) to make these homes available to the public through a contractual process.
What is a HUD home?
* Just about anyone may purchase a HUD property!
* Listing Brokers or associated individuals who are privileged to information about HUD listings prior to the Public are NOT permitted to purchase HUD homes!
* Owner Occupant Buyers receive first preference to Bid
Who can Purchase?
* All HUD homes that are available to Bid on are viewable at
www.HUDHomeStore.com
* HUD properties are also advertised by Local Listing Brokers online and in Multiple
Listing Services!
* All buyers MUST have a HUD approved Real Estate Professional submit a bid on a
home!
Where to…LOOK!
HUDHomeStore.com - Bidder Registration
Select Bidder at the Right corner on the HUDHomeStore.com home page! Make sure your Broker has already registered as a Bidder!
There are helpful video links for bidding registration. As well as a place to check the status of your Brokers NAID number! Make sure you stay up –to-date on your NAID expiration! There is no longer email notification for upcoming expiration dates!
HUDHomeStore.com – FAQ & Resources
Both Pages are very
useful with lots of
information!
HUDHomeStore.com – Password Resetting
HUDHomeStore.com – Search Options
HUDHomeStore.com – Property Search
HUDHomeStore.com – Property Search
HUDHomeStore.com – Addendums Tab
HUDHomeStore.com – Agent Info Tab
* HUD is NOT a lending institution, however, purchasers of HUD homes MAY qualify for FHA-
Insured Mortgages
* Buyers are NOT required to use FHA-insured Loans
* Buyers can use conventional financing with a fixed or adjustable rate mortgage
* VA Loans
* Cash
Financing for a HUD
Varies by PropertyInsurable Properties
*Meet insurance requirements for FHA financing
Insurable with Escrow*Meet insurance requirements for FHA
financing with repair EscrowInitial Bid
PeriodOwner
Occupant Only
Daily BidsOwner
Occupant Only
Investor Bids
Accepted
Day 1 Day 10
Day 30
Insurable & Insurable w/Escrow
Insurable – Limited Eligible Bidders
Insurable – All Bidders & Repair Escrow
* Varies by Property – FHA appraiser deemed $5000 or more in required repairs to be FHA insurable for 203(b)
* After 5 day exclusive bid period, bidding opens to ALL purchasers on a daily bidding (ending at Midnight each day).
* FHA won’t insure property based on required repairs with 203 (b) financing. Buyer must have 203 (k) or cash to purchase!
Initial Bid PeriodOwner
Occupant Only
Daily BidsInvestor Bids
Accepted
Day 1 Day 5
Uninsurable
Uninsurable & Lottery Example
*Homes are Sold AS-IS!!*HUD will not make ANY repairs. All
disclosures deemed reliable but not guaranteed.
*Highly Recommended to have a professional home inspection!!* Also look into home protection insurance for your clients, some HUD Homes will qualify!
Professional Home Inspection
*All Bids on HUD homes are submitted on www.HUDHomeStore.com
Making the Offer!
* The listing price is determined by HUD to be an estimate of the properties current fair market value
* On the Properties screen click “Submit a Bid”
* You will need your Brokers NAID # to continue
* Once your bid is accepted you will be notified via E-mail from the Asset Manager & the Bid information will be posted on the website.
Place a bid on the Property Details page for the property you are bidding!
You need a Registered HUD Realtor to place a Bid.
When a bid is awarded, the Realtor has 2 business days to deliver contracts to the Asset Manager:
*Detail is IMPORTANT* ALL Documents must be signed in BLUE ink!,
and delivered to the Asset Manager* Earnest Money MUST be made out to HUD * Missing any of these details may cost the
buyer a property & YOUR commission!!
You Won the Bid
Required forms*Each Asset Management Company has a
different sales contract and guidelines*Addendums – Earnest Money Guidelines,
Electronic filing Addendum, Owner Occupant Certificate (if applicable), Radon Gas & Mold, LBP, Earnest Money Forfeiture & Extension Policy, Home Inspection…. etc…
*Pre-Approval letter from a certified/ licensed Lender
Contract Package
*Earnest amount of $500.00 for properties under $50K and $1000 for properties over $50K for PEMCO or HomeTelos. Matt Martin 1% over
$50,000 with maximum $2000.
* Must be certified funds made out to HUD
* Earnest Money MUST be submitted with the Sales Contract
* Money is held by Closing Agent* AM will notify of the Closing Agent
* AM may be listed on Property Condition Summary
Earnest Money
Buyer has 15 Days to inspect the property once contract is executed.
You must contact the FSM for approval to turn on utilities and follow their
guidelines on De-Winterized/Winterization etc.
Buyer has to turn on utilities in their name!
Double Check EVERYTHING
* Buyers Agent has to order Title – you will get an email from the AM or Closing
Company* Buyers Agent has to order Survey –
Closing Agent does NOT do this!* Schedule closing with Closing Agent
(Luna & Luna)* If you are having trouble contacting Closing Agent don’t give UP! You may
have to call multiple times!
Prior to Closing
* Extensions for up to 15 days MAY be granted
* Submit letter from lender starting why you need an extension!
* $375 Fee to extend (fee’s vary)* Make sure this is done 6-7 days
business days prior to contract expiration date!
* There is NO automatic extension!!
Extensions
Never give a HUD Key to Anyone!!HUD does not provide Buyers keys at closing.
Be prepared with Locksmith after closing.
ABSOLUTELY NO REPAIRS prior to closing!!
All HUD Homes are sold AS-IS
EDUCATION – Stay informed and connected policies, forms and information changes all
the time!!
Helpful Reminders
“GETTING AMERICA’S HOMEOWNERSHIP BACK ON THE ROAD!!”
Why Search on HomeTelosFirst:• Comprehensive info and Tools• Detailed Information on buyer
Programs and incentives• Founded in 2001, HomeTelos is a
privately held firm located in Dallas, TX.
Register with www.HomeTelosFirst.com to submit
bids for HUD properties under HomeTelos Management.
Click “Register” and follow the directions provided.
Primary Broker Must be registered first with www.HUDHomeStore.comBroker must have a current NAID
number.
www.HomeTelosFirst.com
Real Estate Professionals Tab: My HUD Contracts HUD Closing Agents HUD Sales Forms Training Videos Register with HomeTelos
When you prepare and submit a HUD-9548 sales contract & addenda package for HomeTelos:
• Simply enter the exact offer terms and HomeTelos will generate a printable contract package for your buyer’s signature.
• HomeTelos provides you with the tools to insure that you submit a complete and accurate contract package the first time.
HomeTelos must receive the original signed contract and all
required addenda within 2 business days from the offer
acknowledged date. Contracts not received within two business days are subject to bid acknowledgement cancellation.
HomeTelos ….continued
HomeTelosFirst.com
HomeTelos ...HUD Sales Forms
HomeTelos HUD Sales Forms
BidSelect.com
Please raise your Hand if you have ANY Questions!!
For questions specific to a property please call
Kim Bramlette directly at 512.705.1932!
Dunamis Realty Group, LLC
Kim Bramlette, CRS, SFRBroker / Owner
Direct #512.705.1932Office #512.372.8113Fax # 512.372.4858
Email: [email protected]
Thank You!!