Selling Broker Quick Reference Guide

SUMMARY

To submit an offer on a HUD home you must do the following in the order presented in paragraphs A, B, and C

          A.  Your office needs an active NAID number (see Step 1 below)

          B.  Your Designated Broker must register as a Bidder (see Step 2 below)

          C.  You (as a Broker or a Managing Broker) must also register as a Bidder (see Step 3 below)

 DETAILS
 

The following steps must be completed to submit a bid on a HUD home:

 

1.      The principal broker (in WA, known as the Designated Broker) must register and receive a NAID (Name & Address Identification). Please be aware it can take three to six weeks for the designated broker to receive his/her NAID.  If you are under a tight timeframe, please call us at 206-653-0085 and we can help direct you. Please visit the NAID Registration page on www.HUDHomeStore.com for information to complete this process.

 

2.      The principal broker (in WA, known as the Designated Broker) must then register as a Bidder on www.HUDHomestore.com. Registering as a Bidder is an additional step after obtaining the NAID number. Registering as a Bidder takes only 30 minutes. Please click here to see a short video on registering as a Principal Broker with a NAID.

 

3.      The selling agent/broker must also then register as a Bidder on www.HUDHomestore.com. Registering as a Bidder takes only 30 minutes. Please click here to see a short video on registering as a Selling Agent/Broker.

 

4.      Find a State of Washington HUD Home your buyer wishes to purchase by visiting www.HUDHomeStore.com. Please visit this site frequently for the latest HUD inventory. Properties are listed daily, not weekly. New listings may appear Monday – Saturday by 1:00 am.

 

5.      Complete the appropriate sales contract package for your buyer.  Use the Sales Package Verification Checklist provided at the end of this Quick Reference Guide. Please use BLUE ink to complete the sales contract package which is available at the end of this Quick Reference Guide. Please ensure your buyer has obtained a valid pre-qualification letter or proof of funds prior to submitting a bid.

 

6.      When the contract has been completed,

 

a.      Click the “Submit an Offer” button on the lower right corner of the Property Details screen on www.HUDHomestore.com.

b.      Enter the requested NAID/license information and click “Verify NAID” to get to the Bid Submission page.

c.      Answer the questions according to the completed contract package to complete the form and click “Continue.”

d.      Review the Bid Summary page, accept the terms & conditions and click “Confirm This Bid” to submit. Retain the confirmation number to log back in and track the status of the bid.

 

 

Financing Types

 

The abbreviations you will encounter to describe the allowable financing are provided in the following paragraphs.

 

·         IN (Insurable) – these properties qualify for FHA 203(b) financing and have no obvious Minimum Property Standard (MPS) repairs. These properties may also qualify for 203(k) financing, a rehabilitation loan for owner occupants only.

 

·         IE (Insurable with Escrow) – these properties qualify for FHA 203(b) with Repair Escrow, and have MPS repairs totaling less than $5,000. The repair escrow is the buyer’s financial responsibility, never a credit to the buyer. The lender holds the repair escrow money until completed (which must be within 90 days after closing) and is responsible for disbursing the funds to the appropriate parties. The escrow repair amount only applies to FHA 203(b) financing. These properties may also qualify for 203(k) financing.

 

·         UI (Uninsurable) – these properties do not qualify for FHA 203(b) financing. Typically these properties have MPS repairs exceeding $5,000 or may not meet other guidelines for FHA financing.

 

·         UK (Uninsurable, 203k Eligible) – these properties do not qualify for FHA 203(b) financing, but may qualify for 203(k) financing.

 

 

Property Availability and Bid Deadlines

 

Properties listed as IN and IE are available exclusively for owner occupant, nonprofit and government agency bidders for the first 30 days on the market. Please note the initial bid review is on the 11th day of listing. All bids received during the first 10 days are opened and reviewed simultaneously. If no acceptable offers are received, bids are reviewed daily (Mon. – Fri.) until the exclusive 30 day owner occupant period expires. Properties are then available for all bidders, with bids reviewed daily (Mon. – Fri.).

 

Properties listed as UI or UK (and some IN or IE properties located in HUD-designated revitalization areas) are first placed into the Lottery program for nonprofits and government agencies or for Good Neighbor Next Door participants. If no acceptable bids are received after 7 days in the Lottery program, these UI and UK properties enter a 5 day owner occupant exclusive listing period, with all bids received during this period opened and reviewed simultaneously on the 6th day. If no acceptable bids are received, the properties are then available for all bidders, with bids reviewed daily (Mon. – Fri.).

 

Please note that properties are removed from the HUDHomestore website at midnight the day of bid acceptance. It is vital that you download the LBP addendum, sales contract package and any other disclosure forms prior to submitting a bid as it is no longer available after a bid has been accepted.

 

Winning bid notification will typically be sent within 24-48 hours of bid deadline. Daily bid result postings may be forthcoming on the HUDHomestore website. If your bid is accepted, the sales package (and a COPY of the EMD check) must be received at the appropriate BLB Resources office within 2 business days of bid acceptance. The package may be hand delivered or sent in through OVERNIGHT mail or delivery service to assure timely delivery.

 

Please send sales packages directly to:

 

BLB Resources

16845 Von Karman Avenue, Suite 100

Irvine, CA 92606

Phone: (800) 960-2526

Extended hours: Monday – Friday 7:00 am – 6:00 pm PST (except Federal Holidays)

 

 

Earnest Money Deposits

 

Earnest Money Deposits must be certified funds (i.e. cashier’s check or U.S. Postal Money Order), made payable exactly as “(use your escrow company name) OR (user actual buyer’s name).” Please note that no Money Gram or Western Union money orders will be accepted. The original Earnest Money Deposit (NOT a copy of the check) must be received by the Listing Agent within two business days of bid acceptance. The amount of Earnest Money Deposit required is determined by the sales price as follows:

 

  • For properties with a sales price of $50,000 or less, the Earnest Money Deposit is $500
  • For properties with a sales price of $50,001 or more, the Earnest Money Deposit is $1,000
  • For vacant lots, the Earnest Money Deposit is 50% of the list price

 

 

Overbidding information

 

Please note that if a buyer is securing FHA financing, their lender will be required to use HUD’s FHA “AS-IS” Appraisal. A second appraisal may not be ordered simply to support a higher purchase price. In the event the appraisal is over four months old at the time of contract acceptance, the buyer will be required to obtain a new FHA “AS-IS” appraisal at the buyer’s expense. If a buyer’s bid is accepted and their bid amount is in excess of the HUD appraised value, the purchaser must pay the difference between bid amount and appraised value in cash, because FHA will not approve a loan amount that is greater than the appraised value of the property. If a buyer is securing a loan that does not involve FHA financing, then the buyer’s lender will always order a new appraisal on the property at the buyer’s expense regardless of whether they overbid the property.

 

 

Reference Materials

 

Follow these links to download detailed information for: