It is imperative that HUD selling agents understand BEFORE
submitting an offer for their Buyer financing terms that home is offered For Sale under. Not ALL HUD HUD owned properties qualify for FHA financing.
Agents, spend time with Buyer's explaining the HUD Home Buying process with your clients before you submit a bid for them. Review the addenda, contract, the amount of ED needed, how to endorse it as well as what terms it will be refunded under if any.
Please review with your Buyer type of financing on the listing,
After review, the Buyer may need to counsel with their lender to ensure they are approved for the correct financing.
When using FHA financing, and the financing terms list an escrow for repairs. That additional amount must be financed into the Buyers loan. HUD does not repair, credit or gift for damaged properties. HUD homes are Sold As-Is. Escrow is an additional amount the buyer must finance
on top of the purchase price. You must ensure your Buyer can qualify for the higher amount. The Buyer should have a contractor supply bids for repairs prior to submitting the offer. Your contractor may determine repair cost are less, sometimes more than identified on the laymen.The escrow amount is held by the lender, disbursed to your contractor as repairs are completed. Repairs must be completed within 6 months of closing.
When using Cash, Conventional or other than FHA loan products the escrow reserve is not needed.
Do not mistake the Property Condition Report (PCR) as a Home Inspection. It is a layman's opinion of repairs needed as well as the cost. One would be wise to have a home inspection once your offer has been accepted.
It is wise to take photos of the property the day you submit your offer. Ride by frequently with your agent to inspect the home from the time your offer is accepted until you have closed.
You are ready to submit the bid if the following answers are YES. Buyer is knowledgeable on the process, you have reviewed the financing terms, you have reviewed the addenda with Buyer,you have the correct pre-approval or proof of funds, you have the Buyers earnest deposit check (ED) payable to HUD and Buyers name, you may now submit your bid, obtain Buyers signature. Assuming your Buyers offer will be accepted get ready to overnight you contract to BestAssets. (Nebraska agents)
Regardless of how many HUD homes you have SOLD review the video, use the checklist. It just keeps life so much simpler.
Now as Bev Redden states..Get your HUD on...!NP Dodge Real Estate Company 1X,
is home of 1st Fridays,35/Dodge "HUDNet"
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3552 Dodge St. Omaha, NE 68131
Open to the Public, Do Drop In! ask for me Michele Torrence 402-731-5008.