michaelson, connor
& boul, inc.
5312 Bolsa Avenue, STE 200
Huntington Beach, CA 92649
Phone: (714) 230-3600
FAX: (714) 230-3699
Broker/Agent Handbook
A Guide to Selling
HUD Homes
Version 10/28/03
Table of Contents
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2 |
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3 |
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HUDs AS-IS Policy
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3 |
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Access to the
Property
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3 |
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Repairs,
Improvements, or Occupancy Prior to Closing
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3 |
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Broker
Registration
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4 |
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Property
Listings
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5 |
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Financing
Categories
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6 |
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7 |
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8 |
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9 |
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Placing
Bids
......
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9 |
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Overbidding with FHA
Financing
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9 |
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Bidding for
Investors
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9 |
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Listings with a Deadline of Daily
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9 |
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The
Sales Package
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10 |
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Errors and
Omissions
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10 |
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Sales Contract 9548 (1/99) Line by
Line
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10 |
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The Sales Package - Addenda
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13 |
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14 |
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Obtaining Appraisals and Termite
Inspection Reports
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14 |
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Turning on
Utilities
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... |
14 |
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Adding and Removing
Purchasers
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14 |
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Changing
Financing
.
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14 |
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Extension Requests
.
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15 |
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Re-keying the Property after
Settlement....................................................... |
15 |
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Cancellation
of Bids, Accepted Offers, and Ratified Contracts
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16 |
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17 |
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Transactions
Step by Step
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18 |
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MCB Contact Information
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19 |
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Prior to Placing a Bid Checklist
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20 |
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About this Handbook
This handbook is to be used
for Brokers and Agents working with Owner Occupant and/or Investor Purchasers.
This document may be revised in the future.
It is your responsibility to check for updates and/or revisions of this
document on our website: www.mcbreo.com. The latest Version date of this handbook is
printed on the cover and bottom left of each page; all previous versions are obsolete.
This Handbook does not include information on HUDs special programs
such as Officer Next Door, Teacher Next Door, Firefighter Next Door, EMT Next
Door, Government, and Non-profit Sales. Some of the content of this handbook will not
apply toward these special program sales.
What is a HUD Home?
When someone with a Federal
Housing Administration (FHA) insured mortgage can't meet the payments, the
lender forecloses on the home; FHA pays the lender what is owed; and then the United
States Department of Housing and Urban Development (HUD) takes ownership of the
home. Then HUD sells it at market value as quickly as possible. Michaelson,
Connor & Boul Inc. (MCB) is a Marketing and Management contractor for HUD 1
to 4 unit residential properties. MCB
maintains and sells these properties in accordance with HUD guidelines.
How are HUD Homes
Sold?
HUD homes are listed on the
MLS and on the internet. Registered
brokers and agents may place bids electronically on these properties on behalf
of a purchaser. The bid with the highest
net to HUD is selected as the provisional winner subject to receipt of all
required documents.
Who can buy a HUD
Home?
Any individual who can
qualify for a mortgage or who can pay cash may purchase a HUD home. Purchasers must use a broker or agent who is
registered with HUD to place a bid on a property. Purchasers must also have a pre-qualification
letter from a lender or proof of cash funds in the amount of or greater than
the property they are purchasing.
Who can sell a HUD
Home?
Any licensed real-estate agent or broker who is registered with HUD may show and submit bids on HUD Homes. Please be sure to register with HUD PRIOR to working with a prospective purchaser.
Important Information about HUD Homes
HUDs AS-IS
Policy
All HUD homes are sold strictly
AS-IS, this includes the responsibility of the purchaser to de-winterize the
property. HUD does not make any
repairs. There are no representations or
warranties, expressed or implied, on any HUD property. HUD does not guarantee the condition of any
property, FHA-insurable or not, nor whether it meets local codes or zoning
requirements. Brokers should advise
purchasers that there may be code and/or zoning violations on these properties
and that it is the responsibility of the purchaser to identify these
violations. Buyers are encouraged to have homes inspected by a qualified home
inspection company to satisfy themselves as to the condition of the property at
the time of sale.
Access to the
Property
Owner Occupant
and Investor purchasers MUST be accompanied by a broker or agent when
viewing any HUD home listed for sale. Buyers may not enter a house without
their broker/agent for any reason prior to closing. If there are difficulties gaining access to a
property please contact the local Broad Listing Broker. Lists of local broad listing brokers may be
found at www.mcbreo.com - click on your state and then Announcements.