BEFORE YOU BID
THINGS TO KNOW
Disclosures
HUD Homes:
Sold "As Is" without warranty.
Irregularities in Bids:
In accordance with Housing notice 92-96 with reference to HUD Handbook 4310.5, HUD assumes no liability for errors in the EMRF and/or Sales Contract. HUD continues to reserve the right to reject any and all bids and to waive any informality or irregularity in any bid. Properties are subject to withdrawal or change without notice
Code and Zoning Violations:
Brokers should advise Purchasers that the properties may contain code and/or zoning violations. Code and Zoning status must be determined by the Purchaser.
Property Condition:
There will be no guaranties and/or warranties made. No repairs will be performed on the property by HUD after closing. Purchasers are encouraged to have the properties inspected by a qualified home inspection service company to ensure that they are fully aware of the condition of the property.
Potential Purchasers:
Contact a HUD Approved Broker to obtain a copy of the current listings, to visit listed homes or to make an offer. HUD pays closing cost up to 3% of the purchase price, IF inserted on line 5 of the sales contract.
Brokers:
In order to obtain a selling broker commission, this commission amount of up to 3% of Purchase Price, must be entered on the bid submission.
Changes in Financing: Buyers and Brokers please make note, if changing from FHA 203b/203b Repair to Cash or Conventional on a HUD property where Lead Based Paint Stabilization and/or Termite Inspection/Hazard work has been commenced or completed the buyer is required to reimburse HUD for all the costs incurred. Buyer will be charged at closing for the stabilization and/or treatment costs. Closings will not move forward until HUD is reimbursed.
BID ACCEPTANCE
BID ACCEPTANCE - NEXT STEPS
Congratulations! Your bid has been accepted by the U.S. Department of Housing and Urban Development (HUD). At this time you should have received an automatically generated email indicating the acceptance of your bid. SELLING AGENT Please follow the 4 Steps below very carefully or your bid may be in jeopardy of being cancelled.
STEP 1 – Selling Agent has two business days to complete these tasks commencing from the receipt of your bid acceptance from HUDhomestore.gov. Please be aware that if you do not upload all of the required documents during this time frame, your bid will be canceled.
- Please verify your bid information online. See Below. VERIFING PURCHASER INFORMATION
- Upload Copy of Earnest Money – Earnest money must be in form of a cashiers check/certified funds and made out to the Title Company. See Below. UPLOADING EARNEST MONEY
- Upload Acceptable Form of Proof of Funds or Mortgage Prequalification See Below. UPLOADING PREQUALIFICATION/PROOF OF FUNDS
- Other Document Uploads as Applicable – See Below. OTHER DOCUMENTS NEEDED FOR UPLOAD
- Delivery and CONFIRMATION of receipt of earnest money deposit from the Local Listing Broker.
STEP 2 - The above documents will be reviewed by HUD. Once approved and the earnest money check has been CONFIRMED received by the Local Listing Broker, A-Team will generate the eSignature contract via DocuSign.
STEP 3 – Selling Agent has until the following business day from receipt of the DocuSign envelope to complete eSignature process. Ultimately, it is the responsibility of the selling agent to ensure that this contract is signed by all parties.
A sales contract from DocuSign will be emailed to the following;
The Selling Agent – The sales contract must be reviewed for complete accuracy then once approved is emailed to;
The Selling Broker – Sales contract execution can only be signed by the NAID registered selling broker then once executed is emailed to;
The Purchaser – All Purchasers on the accepted bid must have INDIVIDUAL unique email addresses to execute the sales contract via DocuSign then contract is emailed to;
The Buyer Select Closing Agent – The BSCA must execute the BSCA Closing Addendum included in the sales contract. Once completed the contract is emailed to;
A-TEAM REALTY – Once sales contract is ratified by A-TEAM DocuSign will distribute via email the executed contract package to all signees.
STEP 4 - Please visit https://ateamrealtyinc.com/forms/ for Utility Activation Requests and BSCA Pre & Post Closing Instructions.
ITEMS OF NOTE
- Social Security Number or Employer Identification Number may not be changed once the bid has been accepted. If this information is incorrect on the initial bid, the bid MUST be cancelled.
- The selling agent may not sign on behalf of the NAID Selling Broker without notarized letter of authorization to do so. See Below, Other Documents Needed for Upload.
VERIFING PURCHASER INFORMATION
- Log into www.HUDhomestore.gov
- Click the Accepted Bids tab.
- Locate your case number and click on the Checklist link.
- Verify Purchaser and Title Company. Email addresses provided on this screen must be accurate. These are the email addresses that documents will be sent to for eSignature.
- Upload Earnest Money and Financing Documentation.
UPLOADING EARNEST MONEY and PREQUALIFICATION/PROOF OF FUNDS
Before a contract can be sent for eSignature, earnest money and financing documents must both be uploaded.
Copy of the Earnest Money Check
- Must be certified funds
- $500 for a sales price below $50,000.00
- $1,000 for a sales price greater than or equal to $50,000.00 is the minimal.
Mortgage Prequalification and/or Proof of Funds
- For Cash sale, please provide proof of funds. Must be in the form of a bank statement or letter from the bank and it must include the purchaser's name and a date no older than 30 days.
- For non-FHA financing, please include a Prequalification letter that indicated the following:
- Property address
- Purchaser's name
- Loan amount and/or LTV
- Proof of Funds for down payment
- All gift letters must be notarized.
OTHER DOCUMENTS THAT MAY BE NEEDED FOR UPLOAD
- Letter of Authorization for a Broker Designated Signer (letter to the authorized selling agent associated with the Brokerage of the NAID Broker In Charge used to place the bid may sign on behalf of the broker) only in situations where required.
- Articles of Organization (if the purchaser is an Investor purchasing the property under an LLC or Corporation)
- Social Security Card
- Gift Letter
- Other supporting documentation as requested by A-Team
HUD - FAQ
HUD-owned Purchaser FAQ's
Q: How do I activate the utilities? Especially if I am a buyer or appraiser who needs to see systems working in order to obtain a loan?
Answer:
Brokers will have to notify the Field Service Manager (FSM) that they are requesting utilities be turned on and follow their policies and procedures for utility activation. The contact information for the FSM is provided in the contract package that is issued to listing brokers once a contract has been accepted.
Q: What is the bid period?
Answer:
Each listing on www.HUDHomeStore.com has a Bid Submission Deadline. It is located directly beneath the Case Number and Eligible Bidders on the Property Details page of each property. Please be advised that the Bid Submission deadline is Central Standard Time (CST). The Bid Submission Deadline will change as it progresses through the various Listing Periods.
Q: I don't have a NAID #. How do I submit a bid?
Answer:
You cannot submit an offer without an active NAID #. The purchaser(s) will need to contact a broker with an active NAID # to submit the bid. A list of active NAID brokers is listed on www.HUDHomeStore.com under the Find a Broker section.
Q: What is the difference between an Owner Occupant purchaser and an Investor purchaser?
Answer:
An Owner Occupant purchaser is a person who plans to live in the property as their primary residence for the first 12 months after the close of escrow and has not purchased another HUD Home as an Owner Occupant within the past 24 months.
An Investor purchaser is someone who buys the property as a second home or as an investment, or who does not qualify as an owner occupant.
Q: What is the Lottery Listing Period?
Answer:
Certain property eligibilities allow Good Neighbor Next Door participants, HUD registered nonprofit organizations, and/or government entities to bid on the property prior to becoming available to Owner Occupant bids. These properties, which are usually located in HUD designated revitalization areas or are determined to be uninsurable, are available in the Lottery period for seven (7) days. If there are no winning bids when the Lottery period ends, these properties then enter the Exclusive Listing Period for 5 or 30 days, depending on the insurability of the property.
Q: What is the Extended Listing Period?
Answer:
This is the listing period after the Exclusive Listing Period has ended. All bidders are eligible to place a bid in the Extended Listing Period.
Q: How can I modify and/or withdraw my electronic bid?
Answer:
Please be advised that bids can only be modified and/or withdrawn prior to the expiration of the current bid submission deadline you submitted your offer under.
You may modify and/or withdraw your bid by logging in to your Bidder profile on www.HUDHomeStore.gov and clicking on Bidder Functions. You will need to enter at least one of the following pieces of information to retrieve your offer information: Bid Confirmation Number, Property Case Number (aka FHA Case Number), Purchaser Last Name, or the Purchaser SSN/EIN.
Select the Bid Confirmation Link of the offer you wish to modify/withdraw. The next screen will show you the details of the bid. Click on the Withdraw Bid or Modify Bid button at the bottom of the screen.
Please be advised that if you modify your offer your bid confirmation number will change!
Q: I have an accepted offer but I would like to renegotiate the amounts of my bid. Is this possible?
Answer:
No, HUD will not renegotiate the amounts in your offer after bid acceptance. Purchasers have the option to cancel their bid acceptance and submit a revised offer if and when the property is relisted. However, please be advised that there may be back up offers in place. Should you cancel your offer, the property will be offered to any back up offer purchasers prior to relisting it on the HUD Homestore. There is also no guarantee that a property will be relisted at all.
Q: If the sale is canceled, will the EMD be refunded?
Answer:
EMD refunds and forfeitures are reviewed on a case by case basis. Please review the HUD Forfeiture and Extension Policy for specific scenarios regarding EMD forfeitures/refunds.
Q: When can the buyer get a home inspection done?
Answer:
The buyer has a 15 day period after contract ratification (execution) to activate utilities and complete the home inspection. All inspections, tests, and risk assessments are performed at the purchaser's expense.
Q: What will be the turnaround time on payment once a property closes?
Answer:
The closing agent (per their contract with HUD) has 30 days to send out commission checks. Title will generally send them out right after closing.
