Q: How do I become eligible to sell HUD homes?
The designated
broker for your company or office must have a current Name Address
Identifier number (NAID#) issued by HUD. This number allows the
agents associated with the broker to submit bids on behalf of prospective
purchasers of HUD homes. The broker (not individual agents) registers with
HUD through the M&M Contractor by completing the information on the
SAMS (Single-Family Acquired Asset Management System) forms known as SAMS
1111 and 1111A, with attachments. Please see " Broker
Certification Forms" located under " Forms and
Instructions" of this web site for the forms and Instructions.
The registration package should be completed correctly and sent to the
M&M Contractor’s Regional Office for the state where you are licensed.
The M&M Contractor will check the forms for accuracy and forward them
to HUD who processes them and issues the NAID#. Please allow three to six
weeks for your NAID# to become active.
Q: How often do I resubmit information to HUD to keep my NAID#
current?
The designated broker must update the registration
information annually and/or any time there is a change from what HUD was
provided on the SAMS 1111 or SAMS1111A Forms. Changes to the ownership,
address, telephone number, or authorized signatory should be reported on a
new SAMS 1111, with box "b" checked in the first item and the information
that needs updating clearly printed on the form. What most brokers forget
is to send in a new SAMS 1111 with a copy of the broker's real estate
license every time it is renewed. If HUD has only your expired license on
file, they may deactivate your NAID# because they have no evidence on file
that you are still legally doing business under the license laws of your
state. Regardless, your NAID number should be renewed annually.
Q: I am an agent and I have sold HUD homes before. Now that I am
licensed under a new broker who is not registered with HUD, can I just use
the old broker's FID/SSN to place bids?
No. As an agent you can
only bid under the NAID# of a broker who has legal responsibility for your
actions as a licensee in your state. Your new broker should complete the
SAMS 1111/1111A as soon as possible if you want to continue selling HUD
homes.
You must also
update your buyer center information on our property listings
website.
Q: Can I bid under a temporary NAID# until my broker's application
is processed?
No. Temporary NAID numbers are not available, and you
must not use a different broker's NAID#.
Q: We were registered with HUD some time ago, but now cannot get to
the bid screen using our FID/SSN from before. What happened and how can we
correct it?
If your broker's license has been renewed since you
first registered with HUD, then your NAID number was probably deactivated
when the license HUD has on file expired. Complete and send in a new SAMS
1111/1111A with all attachments. Place a check mark in box "b" to indicate
that you are an "Existing Payee." If you know your old NAID#, enter it in
box 7 in the first section. HUD may renew your old number, or issue you an
entirely new number. Use "Check Your NAID Number" to determine when your
NAID# is active again. Allow at least three weeks for processing after the
M&M Contractor has received and checked your package, and forwarded it
to HUD.
Q: How do I get a key to the HUD houses?
Keys are available
from the Listing Brokers. To locate the Listing Broker nearest you, hover
your mouse over the "Broker and Agent Info." navigation button on the left,
click on Locate a Listing Broker. The Listing Broker will ask for your
business card, drivers license, NAID# or other contact information. You
must never copy or loan these keys to anyone.
Q: Can I hold an "Open House" on HUD homes that are in my
area?
Under special circumstances involving properties that have
been on the market for an extended period of time, the Listing Broker may
be allowed to hold an open house on a HUD home, however open houses are
prohibited except by the Listing Broker.
Q: What are "Bid Statistics" and how is this different from "Bid
Results"?
Bid Results post the acknowledged bids so the buyers'
agents will know to deliver the complete contract package within 48 hours
to the M&M Contractor office. Bid Statistics provide information on
what bids have been received and whether they were acceptable or not. A
property must have been on the market for at least 12 days before bids on
that property are posted to Bid Statistics.
HUD-9548 Sales Contract
Download the electronic version of the Form 9548.
Sales Contract Electronic Filing Addendum HUD-9548
Download the new Addendum to certify that the document has not been altered.
Q: Is it possible to get a list of the properties in my
area?
Yes. You may keep informed about available HUD homes by viewing
the property listings on this web site. Simply click on
HUD Properties For Sale. This information is
real time, so always check before you go out with your client to see
properties. You may also want to set up watchlists for areas
of interest.
Q: Some HUD-owned houses might not be in good condition. Does HUD
make repairs?
HUD homes are sold "as is," without warranty. That
means HUD generally will not make repairs except to preserve and protect
the property or to eliminate a major safety issue. Known defects are
reflected in the price and stated in the listing on the website, as well
as on the Property Condition Summary sheet.
Q: How do I make an offer to purchase? What happens after I place a
bid?
A HUD registered real estate agent or broker must place an
offer in the form of an electronic bid on behalf of the client.
Instructions
are included in the " Guidebook for Real
Estate Professionals ". If the bid offers the highest price,
net of closing costs and commissions, above the minimum acceptable price,
then the bid will be acknowledged, assuming all other considerations are
met. The bid will become the acknowledged bid listed in "Search Offer
Results," allowing the agent or broker 48 hours to deliver to the
appropriate Regional Office the complete and correct Sales Contract
package with all addenda signed, a copy of the loan pre-qualification
letter, and the earnest money check. A thorough description of how to
complete this all-important contract package and get it in correctly and
on time is given in the
Guidebook
for Real Estate Professionals available on this site. Only when
a complete and correct contract package is submitted on time will the
M&M contractor sign on behalf of HUD as Seller. Otherwise, your bid
may be cancelled and the property may be offered to the next highest
acceptable bidder, or it may be placed back on the market for others to
bid.
Q: Can a HUD home be purchased as an investment property?
Yes, but
owner occupant purchasers are given priority for the initial listing
period that the house is on the market for the general public. Owner
occupants are
persons who will affirm in writing that they have not purchased a HUD
owned property in the last two years and they will live in the home as
their primary residence for at least one year. After the initial listing
period, investors may purchase the houses for resale or for rental.
Q: For owner-occupants, can an agent bid on more than one house at a
time?
Yes. If the owner-occupant is the highest bidder on multiple
houses, the M&M Contractor will choose the one that will be
acknowledged for the successful bidder. The owner-occupant will not get to
choose so make sure that any home that the agent submits a bid on is one
that the owner-occupant are prepared to close on! Please read the
information on multiple bids in the "Guidebook for Real
Estate Professionals ."
Q: How will I know if the bid I submitted is acknowledged as the
highest?
Check on the web site in the "Search Offer Results"
section the morning after the bid deadline to see if yours is the
acknowledged bid. PLEASE NOTE: Having your bid acknowledged does not mean
you have "bought" the house, nor that it is "sold." The M&M Contractor
must receive your complete and correct contract package, review it for
accuracy, and sign it on behalf of HUD as the seller, and only then it is
considered "contract pending." When you "win" the bid, all that signifies
is that you have the right to submit a contract package within 48 hours.
Bids are subject to cancellation until the Sales Contract is signed
because all real estate transactions must be conducted in writing,
something that cannot occur until your contract package is checked and
accepted, as indicated by the seller's signature on the documents. If your
contract package does not come in on time, or is found to be incomplete or
inaccurate, the bid acknowledgement may be cancelled and the next highest
bidder given an opportunity to submit a contract package, or the property
may be placed back on the Internet for another round of bidding. Please
see our Disclaimers
section for more information.
Q: Whose Social Security Number should be used in bidding?
The agent
should confirm the correct full name and Social Security Number (SSN)
for each buyer prior to placing the electronic bid. The same name(s) and
SSN(s) must be used on the contract. This information will automatically
populate on a copy of the full contract package that can be printed out
once the bid has been electronically submitted.
Who signs the Sales Contract?
Everyone who is on the mortgage and taking title to the property signs the contract and addenda.
There can be additional people added to line two of the contract that
will be on the deed but not the mortgage. The additional person(s) would
not sign the contract. These
bids and contracts are not assignable to anyone else. NOTE: Be sure to
sign your name exactly the same way each time on all documents. The names
and signatures must match the SSN given for that person. You must place
the bid with the name exactly as it appears on the social security card, including middle
initial or middle name.
Q: How do I cancel a bid? And, can I then enter another bid
instead?
You may cancel a bid – prior to the bid being reviewed –
by simply clicking the cancel button for that bid in your "My Buyer
Center". Please print a copy of the cancellation and retain for your
records.
You may then enter a new bid on the property. If more than one bid is
received by the same buyer on a property, without one being cancelled,
the bid with the highest net to HUD will be the one considered.
Q: I placed a bid on a property, but the next day it is still listed
as available. Why?
Bids are reviewed the morning after a bid
deadline, and results are posted, usually before noon. If the property is
still available, then perhaps it is still too early, and all bids have not
been reviewed, so posting has not yet occurred. Check again later. The
other explanation is that no current bid was acceptable. In that case, the
property would remain available for further bidding and you may bid
again.
Q: How do I get a copy of the HUD contract form?
The Sales
Contract is available to download and print from our web site. Look in our
Broker and Agent Info. section under "Forms". There
is an addendum required called "Electronic Filing of the HUD-9548" stating
that the document has not been altered in any way. Other addenda are also
required and available in this section. See the
Guidebook
for Real Estate Professionals for details on completing the
HUD-9548.
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Q: If my contract is signed, but for some reason I cancel or cannot
close, will I lose my earnest money deposit?
Per paragraph 12 of
the Sales Contract, which the buyer(s) must initial, the earnest money
deposit is at risk of forfeiture if the buyer cancels without good cause.
There is an addendum to the HUD-9548 called "Forfeiture of Earnest Money
Policy." Please read this carefully because it provides the HUD guidelines
on whether and in what circumstances the deposit will be returned or
forfeited.
Q: We sent in our contract package within 48 hours of seeing our bid
acknowledged on "Search Offer Results." How will I know if everything is
okay and the contract has been signed by the M&M
Contractor?
The agent sends the contract package by a delivery
service that provides a tracking system so he/she will know that it was
received in time. If there are any errors or omissions discovered when the
package is reviewed, the agent will receive an "Urgent Notice" via email
at the email address they provided or by fax. An immediate response to
complete or correct the contract package is required or the bid is
cancelled. If there are no errors or omissions, the contracts are put in
line for signature by an M&M Contractor employee who has power of
attorney from HUD. After being signed, the contract is sent back to the
agent by second-day delivery service. Remember, until your agent receives
the fully executed Sales Contract, the property is not considered to be
officially under contract.
Q: How do I know how to fill out the blanks in the Sales Contract?
And what addenda are necessary?
The agent should carefully follow
the "Item by Item" instructions for the HUD-9548 provided in the " Guidebook for Real
Estate Professionals ." The Listing Broker may be consulted for
assistance, and there are training seminars offered regularly for agents,
brokers, lenders, and others who are interested in selling or purchasing
HUD-owned homes. Filling out the contract completely and correctly is the
most important part of the transaction process during the early stages
prior to closing. Please read and follow the instructions provided in the
Guidebook carefully. There is a list of addenda provided, and all
documents are available in the Broker Information section under ":Forms." Agents
using BidSelectTM have "fillable" forms online to aid in the
successful completion of the contract package.
