Home > Blogs > Paul David Hiebing > Paul David Hiebing, REALTOR® @ Grampp Realty: Real Estate in the Quad-Cities' Blog

Are You "Certified" to Sell HUD Foreclosure Properties? And, If Not, Why Not?

By Paul David Hiebing

Real Estate Agent with Grampp Realty: Real Estate in the Quad-Cities Iowa : # S40848000

April 18, 2007 09:03 AM

Most, if not all, REALTORS are aware of the fact that both home buyers and investors can often find great house bargains in the HUD (U.S. Department of Housing and Urban Development) foreclosure market.

Often times these homes will sell for anywhere from 60% to 85% of "AS-IS" market value, allowing both first time home-buyers and investors the opportunity to purchase the size, type and quality of a home that they could not afford in the traditional buyer's market.

We all know that? Right?

However, were you also aware that in order to sell HUD foreclosure properties, you and your brokerage firm MUST be certified with HUD as a buyer's agent brokerage? If you and your brokerage are not certified with HUD, you CAN NOT even place an on-line bid to purchase a HUD foreclosure property. And, this on-line bidding process is the only way to purchase a HUD home. PERIOD!

There are inherent risks involved in the purchase of a HUD home: ("As-Is" condition, strict inspection time-lines and responses, limited availability of seller paid closing costs, etc.) However, a good "HUD Certified Buyers Broker and Selling Agent can help lead the home-buyer through the often difficult process of obtaining financing for, bidding on, inspecting, and setting the closing for the sale of a HUD foreclosure property.

The process for finding a HUD certified buyer's brokerage and selling agent is relatively simple:

Go to: http://www.hud.gov/homes/index.cfm, click on your home state and follow the instructions for finding a HUD certified buyers broker and selling agent.

For agents and brokerages that are not HUD certified, the process for getting certified is relatively simple. But it will take about 6 weeks to receive your certification.

GO TO: http://www.hud.gov/offices/hsg/sfh/reo/mm/mmfaq.cfm for information on how to become certified.

So, once again. my question is: Are You "Certified" to Sell HUD Foreclosure Properties?, And, If Not, Why Not?

You really don't have an excuse not to be.

Comments(8)

Comment

Show All Comments

Sort:

Michelle Way

AVALAR Pro Realty - Jackson, MS

ABR, GRI, WCR

I closed a Hud Home in December 2006. I wish I would have read your blog before this deal. The buyer had 700 plus credit scores. 14 years on the job. Money in the bank. 401K plan and the list goes on. Perfect situation to get a easy check. WRONG. Not even fha would finance him because it was uninsurable. So we had to go conventional. The property was sold as is but the mortgage company after receiving the appraisal wanted the repairs done before closing. The only problem is the property belong to hud and you can't get even the water turned on without their approval in writting. Plus no repairs can be done to the property prior to closing. So they made him put up an escrow account for the repairs out of his money. Can you say nightmare. One good thing is the commission is 5 percent.

Apr 18, 2007 09:22 AM

Donna McCrummen

Keller Williams Towne Square Realty - Bernardsville, NJ

Does each independently owned office of a large franchise need to be certified?

Apr 18, 2007 09:26 AM

Paul David Hiebing

Grampp Realty: Real Estate in the Quad-Cities - Bettendorf, IA

Quad-City REALTOR®, @ Grampp, Realty of The Q.C.

Yes, each local branch of a large, nationally-franchised agency needs to be ceritified by HUD, in the location (state) that it is purchasing HUD homes in..

For example, lets say you work for ABC Realty, which is a local franchise of Big/Max Realty. (without giving actual names)... Even if Big/Max national franchise is certified, ABC Realty must be certified as well..

However, if ABC Realty had offices in four different cities in the same state, (four branches plus a home office) as long as the Owner-Broker of ABC Realty was certified, the agents in each of the four offices could use the Owner-Broker NAID number..

You need to have an NAID number to submit the offer.

Getting certified is really simple---- must agencies are (if they are smart) Ask your broker if your agency is.

Apr 18, 2007 09:35 AM

Roger Stensland

Keller Williams Realty Puget Sound - Maple Valley, WA

Let's Move!

When I spoke to a HUD rep, he said that the brokerage has to be certified and that is all. It is funny that a company that is not a HUD company is responsible for certifying brokerages as HUD brokers.

Apr 18, 2007 09:36 AM

Suzanne Cutler

SUCCESS! Real Estate - Braintree, MA

Paul,

Lot's of great information which I bookmarked so I can read later. Thanks!

Apr 18, 2007 11:30 AM

Timothy Schwartz

Century 21 Mack Morris Iris Lurie - Marlboro Twp, NJ

Paul, great post. I flagged this post to be a Featured Post, it has a wealth of information...m oney making information. REO's are coming back and a lot of coin will be made.

Apr 18, 2007 01:40 PM

Anonymous

Mike Rogers

I work as an accountant for a real estate company that sells HUD homes. I am told I cannot buy a HUD home. What is the prohibition?

Jul 19, 2008 01:33 PM

Matthew Zivkovic

Pay Per Lead Marketing - Vernon Hills, IL

We are looking for agents to sell foreclosures

My name is Matthew Zivkovic. I am the sales manager for the largest Foreclosure Brokerage in Illinois, Chicago Realty Partners.

We have developed a rock solid marketing program to get a seemingly unlimited amount of leads. We have perfected a way to consistenly pump 20-30 buyer leads a day. We do this using an exclusive foreclosure/preforeclosure data base that displays available foreclosures in any city in the USA

These leads are GOLD. We have the numbers to prove it and know these leads are very profitable

What we need:

We are looking for agents(preferrebly Brokerages or Teams) to work our leads. We need agents with the ability to handle a large volume of leads. For smaller markets, 1 agent and an assistant can do very well, but for major cities you must have the infrastructure to handle an onslaught of buyer leads.

What we offer:

Foreclosure Database website -This is different from any website you have ever seen or heard of

Exclusive Territory that can be as large as you want it to be for no additional cost. We prefer that you cover the largest area possible. Are system only works if we give exclusivity to each agent.

50-150 Leads Per Week from qualified buyers who are looking for a buyer's agent specializing in Foreclosures. Yes, I can show you lots of data to quanify these numbers. We have been kicking butt in one of the toughest markets for years and can prove it.

The Price:

There is 0 start up fee. Yes, we want this to be a slam dunk

Month to Month contracts(4 week notice to cancel)

This is a Pay Per Lead

You Pay $10.00 per General Lead Inquiry*

You Pay $30.00 for Property Showing Request**

*Genral Lead Inquiry is when a lead registers for the foreclosure database and request to be contacted by you! You should close 1 in 20.

**Showing Reqquest is when a lead request for you to show them a property from the database. The closing percentages of these is much higher

We offer a 2,000 per mont maximum payment for the first 3 months. If we deliver less than $2,000 worth of leads you pay the lower amount.

If we get you more than $2,000 worth of leads you pay nothing for the additional leads.

We do this to make sure that we are a match for each other. We also know it will take a couple of months to get the ball rolling on your end working to close these leads.

After 3 months you can set your budget for how many leads you want and we will stop delivering leads when ever the maximum is reached.

Please send all inquiries to my email at matthewsellschicago@yahoo.com or call me at 847-372-1591

Oct 16, 2008 04:02 PM