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Michigan Announcements

TRANSITION TO M&M III
Under M&M III, HUD homes will be managed by various Field Service Managers (FSMs) for property maintenance issues and Asset Managers (AMs) for marketing services. There may be more than one FSM and AM for your area. For a listing of designated FSMs and AMs, please refer to www.HUDHomeStore.com for further assistance.

As the transition to M&M III continues, effective October 27, 2010 all properties that are currently listed on MCB’s website will continue to be listed for an additional 15 day period and all bids will be opened on November 12, 2010. All bids placed during this 15 day period will be considered to have been received simultaneously and will be reviewed by the new AM contractor. The notification of an acceptable offer may be delayed for several days during this transition.

Effective November 12, 2010 all remaining properties that are currently listed on MCB’s website will continue to be listed for an additional 15 day period and all bids will be opened on November 26, 2010. All bids placed during this 15 day period will be considered to have been received simultaneously and will be reviewed by the new AM contractor. The notification of an acceptable offer may be delayed for several days during this transition.

Effective November 27, 2010 MCB will no longer be listing any HUD properties.

All questions concerning bids on November 12th and 26th must be directed to the new AM contractor who will make the decision to accept or not. MCB will not be able to provide further assistance regarding these properties. If you have a sales contract that has been ratified by MCB it will continue to be handled by us until December 11. Any cases not closed by that date will be forwarded to the new AM.
Please refer to www.HUDHomeStore.com for further assistance

***EXPIRATION OF OWNER OCCUPANT SALES INCENTIVES ***

The following HUD Owner Occupant incentives will expire as of February 12, 2010:

The incentives will be eligible for owner occupant sales meeting the above criteria, that have a bid acceptance date on or before February 12, 2010. Any bids accepted after February 12 will not be eligible for any of these incentives.

Revised Owner Occupant Sales Incentive

$100 Down Payment Finance Option (FHA financing only)
$2,500 Sales incentive (for properties with a purchase price $25,000 or greater)
$500 Broker bonus (for properties with a purchase price of $25,000 or greater)

Beginning October 1st, 2008 all owner occupants (excluding HUD approved non-profit organizations, Good Neighbor Next Door participants, and units of local government) will receive $2,500 at closing for properties with a purchase price of $25,000 or more.
The $2,500 sales incentive can be used for the following items (for offers accepted after 10/1/08):

• Closing Costs
• Tax Pro-rations
• Repairs to the home
• Replacement of items in the home
• Pay down the unpaid principal balance of an FHA insured Mortgage

If the funds are used for repair or replacement of items the incentive will be deposited in a repair escrow account for FHA financed sales or reimbursed upon submission of receipts.

Some loan programs limit the amount the seller can contribute to the purchaser. This may impact the amount of the $2,500 incentive you can receive. Please consult your lender for further information.

Note: Neither the $2500 incentive nor the $500 broker bonus should be input into the bid submission or sales contract.
The $100 down payment financing is available on most properties through FHA approved lenders. Please note that the $100 down offer applies if the purchase price is less than or equal to the appraised value of the property.

Low Valued Properties
HUD has a continued interest to sell low valued properties in the state of Michigan (Appraised Values at $5,000 and below). After the initial exclusive listing periods have ended without an acceptable bid, a daily review will be generated on low value properties. We encourage brokers to submit offers on low valued properties for their clients daily, or until they no longer have an interest in the property. Low Valued properties will be reviewed on a daily basis after all exclusive listing periods have been completed.

NEW LEAD-BASED PAINT GUIDELINES, effective 9-1-2009
Any FHA Insured Financing, Except 203(k) - $4,000 Maximum

If deteriorated lead-based paint was identified in the Lead-Based Paint Inspection Report,
HUD will only perform stabilization, if the cost estimate is $4000.00 or less. If the cost
estimate is greater than $4000.00, HUD at its sole discretion may: (1) cancel the sales
contract, or (2) allow the purchaser to amend the contract financing to FHA 203k or conventional.
In the event that HUD cancels the sale, the purchaser will be entitled to a 100% refund of
earnest money.

If the cost estimate is $4000.00 or less and the Purchaser is dissatisfied with the information
provided, the Purchaser may withdraw from the contract and receive a full refund of earnest
money by providing written notification to HUD of the intention to withdraw. Written notification
must be postmarked by the latest of fifteen (15) calendar days from the date the contract is
accepted by HUD or two (2) business days following the date of the Purchaser’s signature on the
supplemental Lead-Based Paint Disclosure Addendum.

If deteriorated lead-based paint was identified in the Report and the Purchaser does not exercise the
option to withdraw from the sales contract, HUD will stabilize the deteriorated lead-based paint in
accordance with the stabilization plan and obtain lead clearance by the close of the escrow period or
any extensions thereof.

FHA 203(k) Rehabilitation Mortgage Financing

The $4,000 maximum also applies to 203k credits at closing, as well.

On a 203(k) loan, HUD will credit the buyer the lesser of the amount in the stabilization cost estimate with clearance testing or 10%
of the purchase price, but in either case, the total will be no greater than $4,000.

Upon contract execution HUD will procure a lead-based paint inspection and will deliver the Report to the
Purchaser by e-mail, along with a lead-basedpaint stabilization plan, if deteriorated lead-based paint is
found, and a supplemental Lead-Based Paint Disclosure Addendum.

If deteriorated lead-based paint was identified in the Report and the Purchaser does not exercise its
option to withdraw from the sales contract, the Purchaser shall stabilize the deteriorated lead-based
paint as part of its work plan for the property rehabilitation and shall obtain lead clearance before occupancy.

For more information, please contact Michigan MCB office, 248-827-0200.
City of Detroit, Michigan Purchasers:

Please visit the link below for the American Dream Down Payment Initiative (ADDI):

http://www.detroitmi.gov/Departments/PlanningDevelopmentDepartment/HousingServices/AmericanDreamDownPaymentAssistance/tabid/1954/Default.aspx

Neighborhood Stabilization Program Bulk Sales Initiative

HUD's new Neighborhood Stabilization Program provides emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. For more information see HUD’s NSP website: http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/

As part of this important program, HUD has introduced its Bulk Property Sales Initiative, for eligible NSP grantees to purchase HUD homes with their NSP funds. Properties that have been marketed by MCB for more than 60 days are eligible for this program. While these properties will simultaneously be offered to the general public, NSP participants may locate them on our website under Special Programs- NSP Bulk Sales Listings. Please click here for all specific program information.

December 5th, 2008 ATTENTION ALL REALTORS AND PURCHASERS IN ARIZONA, MICHIGAN AND NEVADA

HUD’S BEST OFFER APPROACH ON OFFERS SUBMITTED

We are offering a new BEST OFFER approach for selected properties. This special offering will be on all those properties that have been tagged with the notation “All offers will be considered on this property”. The bidding period for this offer will be a five-day closed bidding period, (from Friday until Tuesday), with all offers reviewed on the sixth day (Wednesday). During this closed bidding period, in addition to offering a reduction in price on the designated properties, we will be considering all reasonable offers from both owner/occupants and investor purchasers. Please submit your best offer to us for consideration.

Good Neighbor Next Door Program - HUD has revised regulations governing the Officeer Next Door / Teacher Next Door / Firefighter/EMT Next Door Special Sales Programs. These Programs are now known collectively as the Good Neighbor Next Door Program. Please click here for and on overview and refer to our Special Programs section of the website for more details.* As a result of the changes named above, the GNP-Stage 2 program is no longer available and properties will be relisted to the general list on Fridays, after the GNP-Stage 1 period has ended.

CLOSING COST IMPLEMENTATION

Please be advised that HUD’s new closing cost policy takes effect on any contract that is executed by MCB beginning on October 12, 2006. If your contract contains a request for more than 3% closing assistance, it must be received and in ready-to-sign condition (no corrections required) by October 11, 2006. If it is not, you will be issued a correction notification to reduce closing costs to 3%. NO EXCEPTIONS

NEW CLOSING COSTS GUIDELINES

Effective Oct. 12th, 2006 - For all contracts executed on or after October 12th, HUD will pay up to an amount equal to 3% of the purchase price for purchaser financing and 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. NOTE: If the purchaser is requesting HUD paid closing cost assistance, the amount must be entered on line 5 of the bid submission form at the time the bid is submitted. Adding an amount to the purchase agreement after submission of the bid is not allowed. Please review HUD Housing Notice H-2006-12