Selling HUD Homes - The Basics to get Started

By
Real Estate Broker/Owner with Desert Sky Real Estate, LLC 200201121
https://activerain.com/droplet/GWq
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A Quick Refresher on the Most Basic Aspects of Bidding on HUD Homes
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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:

1)  You and your office must be registered to bid at www.HUDHomestore.com.
 

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).
  • A copy 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. 

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Property Photo
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307 NW 7th St ~ $295,000
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Residential or Commercial

  • Bedrooms: 4
  • Baths: 2
  • Sq.Ft: 3752
  • Built:  1924
  • 201201619
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Property Photo
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639 NW Elm Ave ~ $122,500
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Commercial in Redmond

  • 2 Buldings 
  • Paved Parking
  • Sq.Ft: 2177
  • Built: 1926
  • 201204809
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1290 NE Smith Rock Way ~ $125,000
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4.28 Acres in Terrebonne

  • Smith Rock Views
  • Fenced
  • Septic Feasability
  • Paved Street
  • 2900147
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Property Photo
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518 NE Barnes Rd ~ $36,000
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Prineville on 1/2 Acre

  • Bedrooms: 2 
  • Baths: 1  
  • Sq.Ft.: 1205
  • Built: 1948
  • 201204788 
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How to Complete a HUD Sales Contract Package
 

Selling Broker Quick Reference Guide & Checklist


 Owner Occupant Contract Package
 

Investor Contract Package 


Oregon Wood Burning Stove Addendum
 

Don't hesitate to contact me with any additional questions. 

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Topic:
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Location:
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Groups:
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Tags:
central oregon homes for sale
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hud homes for sale oregon

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Rainmaker
1,676,131
Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

The one part i don't agree with is the ID portion. This should be during the closing or such. If the need for proof of funds or a pre-approval somebody would have obtained that prior to the upload.

Aug 27, 2012 02:47 PM #1
Ambassador
2,174,989
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thanks for a nicely written post on Selling HUD Homes - The Basics to get Started.

Aug 27, 2012 02:55 PM #2
Rainmaker
84,748
Terri Visser
Desert Sky Real Estate, LLC - Redmond, OR
CRS - 12 Years Selling Central Oregon Real Estate

Winston - I don't necessarily agree or disagree (although it's always good to know your buyer) but it is a statement you are agreeing to and certifiying you have done when you submit a bid on a HUD Home.  I believe it is partly to make sure the buyer's name appears as it does on their ID that will be used at close to prevent problems later.  Have a great evening.

 

Aug 27, 2012 03:01 PM #3
Rainmaker
84,748
Terri Visser
Desert Sky Real Estate, LLC - Redmond, OR
CRS - 12 Years Selling Central Oregon Real Estate

Thanks Michelle!

Aug 27, 2012 03:02 PM #4
Rainmaker
1,304,604
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Nice post and thanks for sharing the knowlege and help hopefully the folks will use it.

Aug 27, 2012 03:10 PM #5
Rainer
473,411
April Swenson
Coldwell Banker Ocean Shores Brokers - Ocean Shores, WA
CRS and Managing Broker - Ocean Shores Real Estate

Thank you so much.  Always good to know.  I did not know it had to be signed in Blue Ink....seems overkill to me.

Aug 27, 2012 03:18 PM #6
Rainmaker
84,748
Terri Visser
Desert Sky Real Estate, LLC - Redmond, OR
CRS - 12 Years Selling Central Oregon Real Estate

Thanks Charles.

April - It's how they tell it's an original.  Overkilll maybe, but their rules :~)  Thanks for taking the time to stop by and comment.

Aug 27, 2012 03:26 PM #7
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Rainmaker
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Terri Visser

CRS - 12 Years Selling Central Oregon Real Estate
Buying or Selling? I can help! Please Call Today.
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