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HUD Homes are sold "As Is" without
warranty.
Irregularities in bids:
HUD reserves the right to waive any irregularity in
any bid, reject any and all offers, and to withdraw
a property at anytime.
Code and Zoning violations:
Brokers should advise Purchasers that the properties
may contain code and/or zoning violations. Our
contract requires us to identify code violations in
the Property Condition Report.
- Property Condition:
No guaranties and/or warranties are made. No
repairs will be performed by HUD after closing. BA
will ensure that prior to execution of a sales
contract, all available property condition
information will be disclosed in the property
condition report and environmental compliance
record. Purchasers are encouraged to have the
properties inspected by a qualified home inspection
service company to satisfy themselves as to the
condition of the property. Purchasers have 15
calendar days from the date of the Purchaser's
signature on the sales contract to conduct, at the
purchaser's expense, any inspections, test or risk
assessments desired by the Purchaser.
IN - Insured:
All properties listed as "INSURED" are eligible for
FHA financing. These properties are eligible for
insurance under Section 203(b) of the National
Housing Act. An interest rate will be charged on the
loan and is negotiable between the purchaser and
lender. The mortgage may include some mortgage
insurance payments. The originating lender is
responsible for making final determination whether a
property meets Minimum Property Standards and,
consequently, it's eligibility for FHA insurance.
IE - Insured with Escrow Repairs:
Properties listed as "INSURED WITH ESCROW REPAIRS"
means that certain repairs (not to exceed $5,000.00)
are required to meet Minimum Property Standards for
an FHA mortgage. Purchasers of these properties have
the option to purchase "as-is" with cash or
conventional financing. Or, these properties can
qualify for FHA Section 203(b) mortgages if the
purchaser and lender establish a repair escrow at
the closing for the completion of repairs within
90-days of the closing. Purchasers seeking FHA
insured financing to buy properties advertised as
insurable with repair escrow are required to
establish and fund a repair escrow with their lender
in an amount determined by the lender to be
sufficient to pay for the repairs. The originating
lender is responsible for making the final
determination whether a property meets MPS and,
consequently, is eligible for FHA insurance.
UI - Uninsured:
Properties listed as "UNINSURED" means that certain
repairs and or improvements are required to be
eligible for an FHA 203(k) mortgage. The required
repairs on most of these properties exceed $5000.00.
Purchasers of these properties have the option to
purchase "as-is" with cash or conventional
financing. These properties maybe eligible for a FHA
203(k) mortgage if the required repairs and or the
improvements are completed in accordance with FHA
guidelines. Ask a FHA lender for details.
BA will prepare a property condition
report for each property. Prior to completing a
property appraisal BA will prepare and provide to
the appraiser a comprehensive property condition
report that provides potential purchasers with any
information known to BA that may affect the
habitability, functionality or value of the
property, including but not limited to: the
functionality of all heating, cooling, plumbing, gas
and electrical systems and appliances; outstanding
code violations, pending litigation, demolition
orders, other legal actions that may impact the
property or violations of Homeowner's Association
covenants that are known to BA and that will not be
resolved prior to closing; condition of the septic
system or well; existing transferable warranties;
copies of Homeowner's Association documents; the
Environmental Compliance Record, the lead based
paint disclosure, and the mold disclosure. The
completed Property Condition Report will be posted
in the property file on EMS and will be made
available to prospective purchasers through the
Internet Property Listing.
New listings are available weekly on
Friday mornings.
During the Initial listing period, bids may be
submitted by Owner Occupants only during the first
10 calendar days.
Owner Occupant Priority Period.
All Owner-Occupant offers received during this 10
day Exclusive Listing, shall be considered to have
been received simultaneously. In order to be
valid for the period, bids must be completed and
confirmed on the Internet.
Owner-Occupant bids will be opened and reviewed and
the highest acceptable net bid to HUD will be
selected. Bids will be reviewed and posted at 1:00
p.m conclusion of the 10
day Exclusive listing period.
General Public Bid Period.
At the conclusion of the 10-day Exclusive Listing
Priority Period, all general public bids will be
accepted. These bids will be reviewed and the
highest acceptable net bid to HUD will be selected.
In the event the property remains unsold after these
bid openings, daily bids received by 11:59 p.m. will
be reviewed and results will be posted the next day
at 1:00 p.m.
Bids received on the same day shall
be considered to have been received simultaneously.
Friday, Saturday and Sunday bids will be reviewed
simultaneously on Mondays at 1:00 p.m., and the
highest acceptable net bid to HUD will be selected.
In the event the property remains
unsold, the bids (Owner-Occupant and General Public)
will be reviewed and posted daily at 1:00 p.m. and
the highest acceptable net to HUD bid shall be
selected. This listing will remain in effect
until the listing has been sold or withdrawn from
the market to be reanalyzed. Bids must
be completed and confirmed on the Internet before
11:59 p.m. in order to be valid for that day and
will be opened the next day excluding Friday,
Saturday and Sunday which will be opened on Monday.
Brokers must submit bids through Internet bidding at
this web site.
Sales Contract Submission
Zero Tolerance Policy - All names and
Identification numbers entered on the initial bid
submission must be correct and spelled as they
legally appear on the Driver’s License and Social
Security Card. All the information on the initial
bid submission must match the 9548 contract. If any
names or identification numbers are entered
incorrectly on the initial bid submission or the
initial bid submission does not match the 9548
contract, BestAssets on behalf of HUD will cancel
your contract. Because of this policy, we strongly
recommend viewing or obtaining a copy of the
buyer(s) Drivers License and Social Security Card
prior to submitting the initial bid and completing
the sales contract.
Brokers are required to review bid
announcements to verify if their offer was the
selected offer. Brokers must submit the original HUD
Sales Contract Form 9548 (1/99) along with all
necessary addenda within 48 hours after the
announcements are posted.
Submit documents to:
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For Iowa, Minnesota, Nebraska, North Dakota,
South Dakota and Wisconsin
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BestAssets
c/o Bid Administrator
501 Marquette, Suite 1200
Minneapolis, MN 55402
Office: (612) 333-7450
Toll-free: (888) 902-2378
Fax: (612) 333-6474
E-mail:
Minneapolis Regional Office
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To be acceptable, hard copies
must contain no errors.
REMINDER: Brokers must
check the web site on a daily basis for available
properties and bid announcements. If your bid
is selected, a completed contract (with the required
Addenda) must be in our office within the next 48
hours of Bid Result Publication or it will be
considered canceled and the
second highest acceptable net bid to HUD will be
selected.
If multiple bids are submitted on
the same property on behalf of the same purchaser,
only the bid producing the highest net return to HUD
will be considered.
| Multiple Bids on
different properties by same owner-occupant
purchaser |
Go Back To Index |
HUD allows an owner-occupant to
purchase only one property. If a prospective
owner-occupant purchaser submits bids on more than
one property, the bid will be considered in the
following sequence:
- If the prospective owner-occupant
purchasers bid is the only acceptable bid on one of
the properties, then that bid will be the only one
considered.
- If not, the bid that produces the
greatest net return to HUD will be considered and
all other bids submitted by that prospective
purchaser will be eliminated from consideration.
If your bid is selected, a completed
contract (with the required Addenda) must be in our
office within the next 48 hours of Bid Results
Publication or it will be considered canceled and
the second highest acceptable net bid to HUD will be
selected.
If after submitting
your contract to Best Assets and it requires a
change, then it must be in our office within 24
hours or it will be canceled and the second highest
acceptable net bid to HUD will be selected.
Required Contract and
Addendums in pdf format
To obtain an original HUD Sales
Contract Form 9548 Revision (1/99):
Certification of Owner-Occupant
Status: All bids by owner-occupants, who
are purchasing properties listed in the
owner-occupant category, must include an
Owner-Occupant Certification. Sanctions will
be immediately imposed upon Brokers, Agents and
Investors found to be abusing
the system.
Flood Insurance Notification - The purchaser
shall provide the Closing Agent proof of flood
insurance as a condition of closing for all improved
properties located in a special flood hazard area
where flood insurance is available through the
National Flood Hazard Insurance Program, even if it
is not required by the Purchaser's lender, if any.
This requirement does not apply to vacant lots,
properties sold to ACA partners that are scheduled
for demolition or properties sold without any type
of Federal Assistance including, but not limited to
discounts, Purchase Money Mortgage's
sales incentives and closing cost assistance.
You may withdraw an electronic bid
by sending us an e-mail or fax, no later than 10:00
a.m. on bid opening day.
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For Iowa, Minnesota, Nebraska, North Dakota,
South Dakota and Wisconsin
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BestAssets
c/o Bid Administrator
501 Marquette, Suite 1200
Minneapolis, MN 55402
Office: (612) 333-7450
Toll-free: (888) 902-2378
Fax: (612) 333-6474
E-mail:
Minneapolis Regional Office
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The message must include:
- Broker's Name
- Tax ID Number or SSN
- Real Estate agent's name and
telephone number
- Reason for cancellation
- Key information concerning the
bid:
- Case Number
-
Address
- Bid Confirmation Number
Counteroffers:
Properties that are listed during
the Exclusive and Extended Listing Periods may be
eligible for counter offers. If after fifteen (15)
calendar days of the 30 day Initial Listing Period,
we have not received an acceptable offer, we may
extend a counteroffer if the original offer meets
certain criteria approved by HUD. A
notification of the counteroffer will be sent to
selling agent or broker in writing via E-mail or
fax, which will outline the acceptable net to HUD
base on the offer.
Once notified of the counteroffer,
the Broker has the option to resubmit a second bid
online that meets or exceeds the counteroffer
requirement. We will then review all the
counteroffers in conjunction with the competitive
bids received after the bid deadline. We will accept
the bid producing the highest acceptable net to HUD
and post the acceptable offer on the web.
Backup Offers:
When submitting a contract, if line
10 is checked "may" hold such offer as a back-up to
accepted offer, the broker is stating that they
would like an opportunity in the event the first
bidder drops out prior to contract execution by
BestAssets. This means, if an offer is not accepted
because it was not the highest bidder, that offer
will be held to the side as long as the broker
elected to check the "may" box on line 10. In the
event that the winning bidder cancels their contract
or their contract cannot be executed, we will then
contact the next highest bidder with the acceptable
net to HUD. At that point, it is the Broker's
discretion whether they choose to accept or decline
the back-up offer opportunity, since it is not
binding. If a contract has been executed and then
cancelled, the bid process starts over and no
back-up offers will be considered.
Owner Occupants Only:
3% Minimum Down payment for FHA
financed properties.
Maximum mortgage amount 97% of the
appraised value
or sales price whichever is lower.
Investors:
1 unit: 25% Minimum Down
payment, for FHA financed properties;
2 to 4
units: 15% Minimum Down payment, for FHA
financed properties.
HUD requires all bids received
during the Exclusive or Extended Listing Periods be
backed by earnest money in the form of certified
funds (Cashiers Check, Official Bank Check, or Money
Order only). Cash will not be accepted. No later
than seventy-two (72) hours following receipt of a
signed sales contract, the Selling Broker may be
required to deliver the funds to HUD's Closing Agent
in accordance with local customs. When sending
in the contract package for approval, BestAssets on
behalf of HUD will only need a copy of the certified
earnest money funds since the HUD designated Closing
Agent or selling broker will have the funds in their
account.
Required Earnest Money:
The Selling Broker will then forward the Earnest
Money to the Closing Agent once they receive
notification of contract execution. They will retain
a copy for its records and for BestAssets on behalf
of HUD.
Earnest money deposits must be provided in one of
the following methods: Cashiers Check, Official Bank
Check or Money Order only with no termination date
or cancellation provisions. For all states
(MN, WI, IA, NE, ND and SD), the funds must be
payable to both HUD and the buyer by utilizing the
word "or" within it. For example, "HUD or Jane Doe".
The exception is for the State of Wisconsin:
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The Earnest money funds must be made payable to the
Selling Broker or HUD. Example, "EXZ Realty or
HUD". Both names must appear on the funds. When
sending a copy of the Earnest Money Check to
BestAssets on behalf of HUD after notification of
contract execution, please make sure to also include
a receipt of earnest money deposit into the Selling
broker's Account.
Required Earnest Money Amount:
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$1,000 for offers greater than $50,000; (not to
exceed $2000)
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$500 for offers $50,000 or less,
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50% of the Listing Price for Vacant Lots
The following provisions are
applicable in all instances except those where HUD
is unable or unwilling to close the sale, in which
case the entire amount will be returned.
Investor Purchasers:
- Uninsured Sales: 100% of the
deposit will be forfeited to HUD for failure to
close, regardless of the reason.
- Insured Sales:
- 50% of the deposit will be
forfeited to HUD for failure to close if the
purchaser is determined by HUD to be an
unacceptable buyer.
- 100% of the deposit will be
forfeited to HUD if the sale fails to close for
any other reason.
Owner-occupant Purchasers:
Return 100% of the deposit when:
- There has been a death in the
immediate family (purchaser, spouse or children
living in the same household).
- There has been a recent serious
illness in the immediate family that has
resulted in significant medical expenses or
substantial loss of income, thus adversely,
affecting the purchaser's financial ability to
close the sale.
- There has been a loss of job by
one of the primary breadwinners, or a
substantial loss of income through no fault of
the purchaser.
- For an FHA insured sale, HUD
(or a D.E. underwriter) determines that the
purchaser is not an acceptable borrower. For an
uninsured sale, the purchaser was pre-approved
for mortgage financing in an appropriate amount
by a recognized lender and, despite good faith
efforts, is unable to obtain mortgage
financing. "Pre-approved" means a commitment
has been obtained from a recognized mortgage
lender for mortgage financing in a specified
dollar amount sufficient to purchase the
property.
- There is other equally good
cause, as determined by BestAssets, in keeping
with the spirit and intent of the above policy.
Return 50% of the deposit when:
For an uninsured sale, despite good
faith efforts by the purchaser, there is an
inability to obtain a mortgage loan from a
recognized mortgage lender.
Forfeit 100% of the deposit when:
- No documentation is submitted.
- Documentation fails to provide
an acceptable cause for the buyer's failure to
close.
- Documentation is not received
by BestAssest no later than close of business on
the tenth (10th) day following cancellation of
the contract.
Vacant Lot Sales:
The purchaser is considered
to be an investor and instructions pertaining to
investors will apply.
BA will provide, at no charge, one
copy of the appraisal to the winning bidder for use
in obtaining a mortgage loan. If, for any reason,
the winning bidder's lender requires a new or
updated appraisal report, the cost of that report
will be the responsibility of the winning bidder.
However, the lender for a winning bidder obtaining
any type of FHA insured financing report except a
203(k) rehabilitation mortgage must use the
Contractor provided FHA appraisal report unless the
report is more than six (6) months old on the date
the sales contract is executed.
For all contracts executed on or
after October 12th, HUD will pay up to and may not
to exceed 3% of all closing costs considered to be
reasonable and customary in the jurisdiction where
the property is located. If the total closing costs
reflected on the HUD 1 settlement statement are less
than the amount indicated on the sales contract, HUD
will reimburse only the actual costs charged and
will not credit the purchaser with any difference
either in cash or through a reduced purchase price.
Within the three percent (3%) allowance, HUD will
reimburse loan origination fees up to one percent of
the mortgage. However, on an FHA 203(k)
rehabilitation mortgage loan, HUD will reimburse one
and a half percent (1.5%) of the mortgage. Please
review HUD Notice
H-2006-12.
All purchasers must close on their contract
acceptance date.
ALL SALES ARE EXPECTED TO CLOSE
WITHIN THE SPECIFIED TIME FRAME IDENTIFIED ON LINE 9
OF THE SALES CONTRACT.
Closing Extension Request:
If the closing is not expected to occur on or before
the specified time on line 9 of the HUD Sales
Contract 9548, the Broker must forward a written
extension request to HUD's closing agent prior to
the expiration of the time specified on the sales
contract.
BestAssets, as HUD's Representative, may grant an
extension of closing time and, if approved,
extension's will be granted for a period of fifteen
(15) days:
- Documentation submitted with the
extension request must establish that a closing can
reasonably be expected to occur within the extension
period.
- The extension request must be
accompanied by a cashier's check, money order or
other certified funds in the appropriate amount and
made payable to HUD. The fee is based on the
Contract Sales Price:
| Contract Sales Price equal to or less than
$25,000 Extension fee is $10 per day ($150) |
| Contract Sales Price of $25,001 to $50,000
Extension fee is $15 per day ($225) |
| Contract Sales Price over $50,000 Extension fee
is $25 per day ($375) |
- The initial 15-day extension will
be provided for owner occupant purchasers, at no
cost, if documentation is provided indicating that
proper and timely loan application was made, that
the delayed closing is not the fault of the
purchaser and that mortgage approval is imminent.
- The extension fee will be
retained by HUD. In the event that the purchaser
closes prior to the end of the extension period, the
unused, prorated portion of the extension fee will
be credited to the amount due at closing.
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The approval of an extension does not obligate
BestAssets, as HUD's Representative, to grant future
extensions.
SAMS
Forms for Broker Name and Address Identifier (NAID) Registration/Recertification
(Selling Brokers are
required to certify annually.
Non-profits and Government Agencies are required to certify every two years.)
Broker NAID
Packet for downloading (Includes Selling Broker Certification
Checklist, SAMS Form 1111 with instructions, Form 1111-A with instructions)
Caution: Selling
Brokers licenses expiring within three months of the certification reviewing
date please renew your broker’s license with your state prior to submitting your
NAID packet. The NAID certification
packet will need to contain the most current and active license or the packet
will be returned to the business address provided.
Please allow six to
eight weeks for the NAID review at Best Assets and certification process with
HUD. All the required forms must have all
necessary signature and information completed.
The checklist details the required verifications.
Incomplete NAID packets are returned to the business address provided.
Downloading Instructions
The file available for downloading is in "PDF" format and must be viewed with a
PDF reader. The Adobe Acrobat reader is free and can be
downloaded from the Adobe
web site. (It is only necessary to download Adobe Acrobat reader once.). For
complete instructions on how to download and view PDF files please use our
instruction page.
Selling
Broker NAID Certification packets should be sent For
Iowa, Minnesota, Nebraska, North Dakota, South Dakota
and Wisconsin
to:
All Broker Registration requests
should be sent to:
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For Iowa, Minnesota, Nebraska, North Dakota,
South Dakota and Wisconsin
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BestAssets
c/o Broker Administrator
501 Marquette, Suite 1200
Minneapolis, MN 55402
Office: (612) 333-7450
Toll-free: (888) 902-2378
Fax: (612) 333-6474
E-mail:
Minneapolis Regional Office
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Broker Commission: Up
to 5% commission of the purchase price to the
Selling Broker, IF the commission is
included in the bid and inserted on line 6a. of the
HUD sales contract Form 9548 (1/99).
"WHAT IF I NEED HELP?"
If you need help, you can obtain it several ways:
- There will be an on-line help
screen. It provides complete instructions for
filling out the HUD sales contract, and shows the
corresponding input for items required for
submission. You will be able to access this
document from the Internet at the appropriate State
Bidding Screen, or click on a numbered item on the
bid submission screen.
- You can also call, during the
hours of 8:00 a.m. through midnight
central time at (888) 902-2378
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