HUDguru synopsis of changes.
Last update 12-30-10
(previous contributions were made by a friend of the HUD guru: Genie Birnbaum)
Last update 12-30-10
(previous contributions were made by a friend of the HUD guru: Genie Birnbaum)
Overall:
- Every operation of HUD is based off of a rule or policy. I believe the asset managers have descresion to operate their business and enforce additional guidelines
- I believe we will need to learn a different system for every asset manager
The source of most of this comes from the original HUD webinar, a Pemco training class held by an LLB, or my personal experience:
- may be required to do "final walk through"
- may implement enforcement to require agents to use sign in sheet when entering a HUD owned property
- the FSM's authorize inspections (send your inspection request forms to FSM's)
- closing timelines for cash, financed, and fha (203b) are all 45 days. Only 203k is 60 days
- changing the type of financing (ie cash to financing or fha to conventional) will require a new contract (not just amendment)
- we will be required to write the bid confirmation number on the right hand corner of the contract
- make out earnest money to HUD another excellent HUD agent said she was required to make it out to buyer and HUD. I suspect its different for different AM's or she experienced it before the change. This is from an email I got directly from Pemco:
- Earnest money guidelines: Certified funds should be made payable to HUD only! This will conflict with the earnest money guidelines Addendum in the contract package. Please follow the recent changes.
- earnest money will be sent directly to the AM assigned to the deal, the AM will forward earnest to the closing agent
- form 9548 will expire july 31, but use it anyway
- pempco says no open houses for buyer agents however listing agents (LLB's) may hold open houses
- NAID certification and renewals will be sent directly to the Denver HUD office
- Electronic lock boxes will be used by LLB's
- LLB's are required to provide a key to non REALTOR agents.
- Bid timelines are: owner occupant IN and IE's: bid deadline 10 days then daily for 20 days, investors can bid on 31st day. For UI bid deadline in 5 days, investors can bid on day 6.
- commissions are 3% instead of 5% (but can still be voluntarily reduced by bidding agent)
- If you find a hud owned property but its not in the "active for sale stage" you can enter the address at hudhomestore.com and find asset manager and fsm info (nobody has been able to verify that this is true)
- Earnest money with some AM's could be 1% (as low as $500 as much as $2000). (All reports so far say the old system is still in place. $500 under $50k or $1000)
- Bid results may not be available to everyone. You may only be notified of the result of your personal bid without the ability to see what competing bidders submitted.