A Quick Refresher on the Most Basic Aspects of Bidding on HUD Homes
Many of you have bid on HUD Homes in the past and know these items already, but if you've never placed a bid before sometimes knowing the basics before you start the process is helpful and relieves a bit of the stress of getting it right. If it's been awhile since you've placed a bid, it's also easy to forget the basics of the process, so here we go:
2) You must be able to positively identify your buyer & their bid information.
The terms you will be agreeing to when placing the bid are as follows:
The purchaser has received a pre-qualification letter from a lending institution if the purchase is to be mortgaged. If paying cash, the purchaser has received certification from a financial institution stating that sufficient funds are available to complete the purchase.
The original signed contract, including all addenda, will be delivered to the asset manager within two (2) business days of being notified of the bid award.
The earnest money deposit will be submitted with the Sales Contract (In OR a copy goes with the contract).
Acopy of the purchaser's driver's license (or an acceptable form of photographic identification)and social security card or employer identification number, if applicable, has been obtained to verify the purchaser(s) identity.
The name(s) and identification number(s) will be entered on the bid site as they legally appear on the driver's license and social security card.
3) The original contract must be signed in BLUE ink.
4) The earnest money check will go to an OR address and not with the contract to CA.
5) The earnest money must be a cashiers check or postal money order payable to "Primary Buyer or HUD" with all words in " " included.
6) HUD does not accept our OR Real Estate Sale Agreement but does require our OR Disclosed Limited Agency Agreement.
7) HUD's Oregon Wood Burning Stove Addendum is required as a disclosure even if there is no wood stove on the property.
Again, these are the basics to get you started. Utilizing the auto-populate contract and checklist provided will make a world of difference in getting the contract out free of errors, minimizing the risk of your buyer losing the property and saving the cost of re-mailing corrected documents.