How to Submit a Bid for a Columbus HUD Home Listing
Only HUD registered bidding agents can place a bid on Columbus HUD Homes on your behalf. Make sure to work with an agent who has experience in dealing with the complex paperwork that's required by HUD. Incomplete contract packages will be rejected and can cause you to lose your winning position!
Items needed BEFORE your agent can place a bid on your behalf:
- Lender pre-approval letter - must state the type of loan and amount you are pre-approved for
- Earnest Money Deposit in certified funds made out to the brokerage who will be representing you. The amount of the deposit varies with the amount you are offering. For properties up to $50,000 the deposit is $500. For bids between $50,001 and $100,000 the deposit required is $1,000. For offers above $100,001 the earnest money deposit has to be at least $1,500.
- HUD contract paperwork filled out in BLUE INK - this is very important! HUD does not accept emailed or faxed contracts. Originals only!
I recently attended a HUD Home Seller Seminar for Real Estate Agents, presented by Marla Webb from the Ohio NHMS office in Cleveland. Marla stated that 9 out of 10 contract packages are submitted incorrectly, and that only 5 out of 10 contracts get ratified (fully accepted) by HUD. Wow.
Here is MY track record: 100% of my buyer's contracts have been ratified (accepted) by HUD. I'd be happy to work with you, too, and guide you through this process.
How low can you go?
HUD has a proprietary review process for accepting bids. We have been tracking bidding statistics and can help you determine what amount should be meeting internal guidelines. HUD will accept the bid that has the highest NET, provided it meets the threshold amount.
You won - what next?
Congratulations! The next 48 hrs are crucial. HUD has to receive a COMPLETE CONTRACT PACKAGE WITH ORIGINAL SIGNATURES within 48 hrs or you may forfeit your winning position! Ideally, your preferred agent has completed the contract package with you at the time you submitted the bid, in order to be adequately prepared. The two most important items YOU, the buyer, have to provide are:
- Earnest Money Check in certified funds for $500, $1,000 or $1,500
- Lender pre-approval Letter stating loan amount and type of loan
HUD will review the contract package to make sure everything has been included and everything has been filled out correctly. HUD will email the ratified (accepted) contract to your bidding agent within 10 days.
Important Deadlines
The following time lines start with the day your agent received the ratified contract:
INSPECTIONS: must be completed within 15 days and CLOSING: no later than 60 days. Don't forget to have a locksmith at the ready to change the locks for you!
More about the INSPECTIONS: must be completed within 15 days. ALL HUD properties have been winterized. Your agent needs to submit a Utility Activation Request to HUD's appointed Management Company BEFORE turning on the utilities. You then have 72 hrs to complete your home inspections and appraisal (only needed for Conventional or VA loans) before required to submitting proof to the management company that the property has been re-winterized again.
We are HUD specialists and have the inside track to all HUD properties in the Columbus Ohio area. Our team has the experience to help you guide you through the process. Let's chat and see what opportunities are there for you!
Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650 http://ColumbusOhioHUDHomes.com
Comments (0)Subscribe to CommentsComment