Successfully Selling HUD Homes

Last week Carrie Cowan & I went to a HUD class presented by Vanessa Wilde. It was VERY information. Here is some of the information we learned. – Jodi

– HUD properties are FHA Foreclosures. Once the private mortgage insurance pays off the loan & they become the property of the government.
– HUD now has three asset management companies: Pemco, Matt Martin & HomeTelo.
– You can find all active HUD Listings at: This site will have the most up-do-date status. If it’s not on here, it probably has a contract. Check here first!
– All agents must register with HUD &
– Properties are listed daily! (even on the weekends)
– Make sure you check the top of the listing for eligible bidders and bid submission deadline.
– If your buyer is getting FHA financing, the property must be E (insured escrow) and buyer must have escrow money for repairs (determined by HUD) which can be factored into the loan (FHA 203B long w/ repairs in escrow)
– The repairs escrow is held by the bank/lender until repairs are made. It’s a case by case decision on how funds are released.
-If the property needs over $5k in repairs, it is NOT insurable
-FHA appraisals have typically already been done on the property and are usually online.
– All HUD properties close at Northwest Title Co. (816.792.3335)
– There are potentially 5 different HUD keys (vs the one universal key we all use to use). You MUST call co-op to schedule an appointment. Many HUD homes now have lock boxes on the property. Also, please sign the login form inside each home.
– Commission is now 3% for the buyers agent with a minimum flat commission of $1250.
– There may be multiple back-up contracts on a property and you are now unable to see other bids on a property
– Earnest money depends on the asset management company. HomeTelo & Pemco are $500 (up to $50k) and $1000 (over $50k). Matt Martin varies per property.
– HomeTelo typically has a 20 day cash closing, HOWEVER, it doesn’t always close on time therefor you MUST file an extension (which includes a fee). Prepare your buyers for that!
– Typical financed closings are 45 days.
– If an offer is CANCELLED, it means the offer was reviewed but NOT accepted.
– If you are given a “bottom dollar” amount, make sure to add in your commission and any other costs!
– HUD listings are already designated selling agents, however, they will not sign the Agency Amendment
– you MUST have approval from the asset manager to do inspections (and get utilities turned on)
– only Active/Live termites will be treated
– HUD will correct lead based paint issues if it is under $4k.
– ALWAYS print the contract when you submit a bid online! There are certain areas that will be auto-populated and others you will need to write in.
– MUST include: Husband & Wife, Single Person, etc for contract to be accepted
– Earnest money to be held by: HUD Designated Closing Agent (#3 & #9)
– If buyer is paying cash OR getting conventional financing, make sure to check last box on #4
– Make sure #12 is initialed by buyer

About jodidanziger

St Louis Native. Proud University of Kansas Alumni. Kansas City Realtor. Social Media, Dog & Exercising lover. Purse & Shoe addict. Social Butterfly. And so much more!
This entry was posted in FHA, FHA foreclosures, Foreclosure, HUD, HUD homes, Jodi Danziger, Kansas City Real Estate, Realtor Jodi Danziger. Bookmark the permalink.

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