HudSoldHere - Terri Kilpatrick, Treesa Daniels, & Kristine Duncan

Everything You Ever Wanted To Know About The HUD Sales Process

When It Comes To Deadlines, HUD Means Business!!!

This blog is mostly intended to be helpful to agents selling HUD homes - but buyers, feel free to read along as well! This information will be quite useful if you decide to purchase one of the thousands of HUD homes on the market today.

I cannot stress enough how important it is to meet all deadlines when you are selling a HUD home. Not meeting deadlines = HUD canceling your contract. In this blog, I will list some of the most common causes of HUD's deadlines not being met, and also give some pointers on how you can avoid having your contract terminated.

Please keep in mind that there are now THREE Asset Management Companies (Pemco, Ltd., Ofori & Associates, and HomeTelos) managing HUD properties in our area, instead of just one company. For that reason, it is very important that when you are looking at a property on www.HudHomeStore.com, that you click on the "Agent Info" tab. You will find information for not only the Listing Broker, but the Asset Management Company and the Field Service Manager as well.

The websites for the three Asset Management Companies are:

www.HudPemco.com
www.OforiREO.com
www.HomeTelosFirst.com

Once you are notified that your bid has been accepted, you must overnight the buyer-signed contract package to the correct asset manager within 48 hours. Failing to get the contract package to the correct Asset Manager within 48 hours will result in your bid being canceled. No exceptions. Once your bid is canceled, the property may automatically be awarded to the next-highest bidder if that bidder requested that their offer be held as a back-up and your buyer will lose out completely. If there were no back-up offers, the property will return to the market and you will get the opportunity to bid again.

The main reasons that we are seeing for the 48 hour timeline not being met are:

Agents not having the contract package completed at the time the bid is placed.
This is UNACCEPTABLE! You MUST have the contract package completed and signed in blue ink by the buyer and Broker prior to submitting the buyer's bid online. One of the forms in the package is an "Electronic Filing of 9548 Contract Addendum". By signing this form, the buyer is essentially giving you permission to submit the bid online on their behalf. To get the correct forms, you will need to go to the Asset Manager's website and download them. For example - If you send Pemco branded forms to Ofori, your bid will be canceled, and vice versa. Attention to detail is VERY important! Not having the correct forms prepared at the time of placing the bid is the #1 reason for the 48 hour deadline not being met.

Agents not sending the earnest money in with the contract package.
Earnest money must be in the form of a Cashier's Check, made out to HUD. The Cashier's Check must be overnighted to the Asset Manager along with the contract package.

Agents sending the contract packages to the Asset Manager by regular mail instead of overnighting them.
I recommend ALWAYS overnighting the contract packages, and also keeping your tracking number handy in case you need to track down a lost package or need to be able to prove that the Asset Management Company did receive the package by the deadline.

Agents sending contract packages to the incorrect addresses or incorrect Asset Management Company.
It is always a good idea to check the Asset Management Company's website and verify that their address has not recently changed. Also, double check to make sure that you are sending the package to the correct Asset Management Company! If you fail to get the contract package to the CORRECT Asset Management Company within 48 hours, your bid will be canceled.

That's it for now. Hope you found this information to be helpful, and please feel free to contact me with questions regarding the HUD sales process.

Posted By - Terri Kilpatrick - 09/26/2011

Comments:

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