Step 6:

Submitting the Bid & Contract

 

 

Complete the sales contract, addenda and collect EMD PRIOR to submitting a bid.

 

Click here to watch video for how to locate Properties, Addendum and Contracts.

 

Completing a HUD Sales Contract

 

 

Complete the sales contract, addenda and collect EMD PRIOR to submitting a bid.

 

Click here to watch video for how to locate Properties, Addendum and Contracts.

 

HUD now has the E-Signature Process

TIPS: 

When an agent places a bid on the HUD Homestore, additional information is required that was not previously requested

•Make sure all information is accurate to avoid delays

•Read all the instructions and follow up timely

•Read all emails from DocuSign, HUD Homestore and Sage Acquisitions for a smooth process

The agent placing the bid must also make sure that the E-Signature Signer Information is accurate for who will sign for them as the Broker.

Bids will be submitted online

The information entered on the bid submission page will become the first page of the sales contract

Bid Lines

•Line 3:  Offer Price

•Line 4:  Type of Financing

•Line 5:  Closing Costs

•Line 6:  Agent Commission

•Line 7:  Net to HUD

•Line 8:  Buyer Type

With the introduction of E-Signatures on HUD Contracts, information is required that was not previously requested.

The information entered on the bid submission page will become the first page

of the sales contract.

 

Closing Cost – Line 5

HUD will allow up to 3% the purchase price of the property to go toward closing costs and closing agent fees

•Buyer is responsible for Closing Agent Fees that are not included in the bid.

•Buyer is responsible for closing costs if there is an insufficiency of funds to go towards Closing Agent Fees

Enter this numeric figure (not percentage) on Line 5

Commission – Line 6a

HUD will allow UP TO 3% the purchase price of the property to go toward agent commission.  No commission will be paid if the buyer is a licensed selling agent.

Line 6b will populate 3% for Listing Broker Commission

Click here to find the allowable 3% Closing Cost

 

 

•Note: Lines 5 and 6a will be deducted from the offer price and will affect the net

amount paid to HUD.

Closing Time Frames

FHA/Conventional  closes 45 days from contract acceptance

Cash Closing  closes 30 days from contract acceptance

203k Closing  closes 60 days from contract acceptance

 

 

HUD HOMES ARE SOLD AS IS WHERE IS

 

•HUD makes no representation or warranty to the condition of the property

 

•HIGHLY recommended to have a Home Inspection.The purchaser is responsible for taking the necessary steps

to determine the condition of the property.

 

•Initial property condition reports (PCR) are conducted and may be found at www.HUDHomestore.com. These are preliminary and not meant to replace a traditional home inspection.

 

•Buyers do not acquire any liens or bills from previous owner.

EMD: Earnest Money Deposit

 

 

Deposit Amounts (certified funds only)

•$500 for sales price under $50,000

•$1000 for sales price $50,001 and up

•1D, 7A and 5P ONLY: $2000 for sales price greater than $250,000

The Selling agent will be responsible for delivering earnest money on all awarded bids to the Listing Broker.

 

The Listing Broker will only accept certified funds and will verify the correct amount of earnest money and name of the payee.

•The payee will always be the closing agent.

 

The Listing Broker will ensure that the earnest money is remitted within (2) two business days of contract execution by Sage to the closing agent. 

 

May be entirely or partially forfeited or refunded if contract fails to close

•Specifics outlined in Forfeiture and Extension Policy

 

 

Step 7.
Utilities and Inspections

© 2020 by Native American Group LLC t/a Better Homes and Gardens Real Estate Native American Group.

A licensed real estate firm in the states of VA/NC

 

 

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