Bidding on HUD owned properties
1. The sales contract must be submitted to the asset management company within 48 hours of awarded bid. This includes:
-Proof of funds or pre-approval letter from lender
-Earnest money (cashiers check or money order payable to HUD)
Note: if there are errors in the contract, the buyers agent may be given extra time to make corrections. If corrections are not made on this attempt, the bid acceptance may be terminated.
2. Upon receipt of the contract signed by a HUD representative, certified funds must be sent by the buyer to Field Services to authorize utility activation. Utilities are activated in buyer’s name after authorization is received from Field Services. Utilities are activated for inspection only and must be turned off within 5 days of activation.
3. The HUD contract allows 30 days for cash closing or 45 days for closings with financing. If it goes beyond that time, regardless of who is to blame, the buyer must pay an extension fee for a 15 day extension. This may be refunded at closing for the first 15 days extended.
4. No work can be done prior to closing – not even lender required repairs. No one is authorized to enter a HUD home without a HUD approved agent being present. This includes the buyer, inspector, appraiser, or contractors that may be getting bids for repairs. Any unauthorized person is considered trespassing and may be prosecuted by the seller.
5. The listing agent is not allowed to provide a key to the home at closing. The locks must be rekeyed immediately by the buyer.
Other than bidding on HUD owned properties – there is much more information available on HUDHomeStore.com including the option to search for HUD homes, property condition report, and guidelines for bidding.
If you have questions about bidding on HUD owned properties or if you’re looking for a home to purchase, contact us.
Buying a HUD home
Buying a HUD home can be a little confusing because they are handled differently from other foreclosures. Don’t let that stop you for considering HUD owned properties… it’s a great way to save money on your new home!