successfully selling hud homes

Successfully Selling HUD Homes WebinarDunamis Realty Group

Dunamis Realty Group6507 Jester Blvd.

Suite 507Austin, TX 78750

Tel. 512.372.8113 / 1.877.773.0007Fax. 512.372.4858

Email: [email protected]@DunamisRealty.com

Kim Bramlette, CRS, SFRBroker/Owner

Direct # 512.705.1932Office # 512.372.8113 or

1.877.773.0007E-mail: [email protected]

Office Location:6507 Jester Blvd. Suite 507

Austin, TX 78750

Contact Information

* Changes to HUD Contract HomeTelos, Matt Martin Real Estate Management & Pemco, LTD.

Have replaced Southwest Alliance

* www.HUDHomeStore.com Place all bids on site Register under a HUD Certified Broker (Broker Must be

registered first)

• Exclusive Owner-Occupant Period• Earnest Money MUST be submitted with the Contract• Up to 3% Buyers Agent Commission• Up to 3% Closing Cost

What's NEW with HUD?

Effective 10/20/2011Denver Home Ownership Center has approved a FHA $100 Down Payment Sales incentives for the

NEXT 12 MONTHS!

Bid Requirements: (Must have all 3, only applies to HUD Properties) Owner Occupant Purchases FHA Insured Financing Only Full Price bids based on current list price

Properties awarded bids prior to 10/20/2011 are not eligible for this incentive.Loan amount cannot exceed the full appraised value.

FHA $100 Down Payment Program is BACK!!

* Property that was originally insured by FHA when Purchased.

* If the owner of a FHA insured loan defaults, the Bank/Lender forecloses and files a claim with HUD. HUD did not foreclose on owner.

* The Federal Government established HUD (U.S. Department of Housing and Urban Development) to make these homes available to the public through a contractual process.

What is a HUD home?

* Just about anyone may purchase a HUD property!

* Listing Brokers or associated individuals who are privileged to information about HUD listings prior to the Public are NOT permitted to purchase HUD homes!

* Owner Occupant Buyers receive first preference to Bid

Who can Purchase?

* All HUD homes that are available to Bid on are viewable at

www.HUDHomeStore.com

* HUD properties are also advertised by Local Listing Brokers online and in Multiple

Listing Services!

* All buyers MUST have a HUD approved Real Estate Professional submit a bid on a

home!

Where to…LOOK!

HUDHomeStore.com - Bidder Registration

Select Bidder at the Right corner on the HUDHomeStore.com home page! Make sure your Broker has already registered as a Bidder!

There are helpful video links for bidding registration. As well as a place to check the status of your Brokers NAID number! Make sure you stay up –to-date on your NAID expiration! There is no longer email notification for upcoming expiration dates!

HUDHomeStore.com – FAQ & Resources

Both Pages are very

useful with lots of

information!

HUDHomeStore.com – Password Resetting

HUDHomeStore.com – Search Options

HUDHomeStore.com – Property Search

HUDHomeStore.com – Addendums Tab

HUDHomeStore.com – Agent Info Tab

* HUD is NOT a lending institution, however, purchasers of HUD homes MAY qualify for FHA-

Insured Mortgages

* Buyers are NOT required to use FHA-insured Loans

* Buyers can use conventional financing with a fixed or adjustable rate mortgage

* VA Loans

* Cash

Financing for a HUD

Varies by PropertyInsurable Properties

*Meet insurance requirements for FHA financing

Insurable with Escrow*Meet insurance requirements for FHA

financing with repair EscrowInitial Bid

PeriodOwner

Occupant Only

Daily BidsOwner

Occupant Only

Investor Bids

Accepted

Day 1 Day 10

Day 30

Insurable & Insurable w/Escrow

Insurable – Limited Eligible Bidders

Insurable – All Bidders & Repair Escrow

* Varies by Property – FHA appraiser deemed $5000 or more in required repairs to be FHA insurable for 203(b)

* After 5 day exclusive bid period, bidding opens to ALL purchasers on a daily bidding (ending at Midnight each day).

* FHA won’t insure property based on required repairs with 203 (b) financing. Buyer must have 203 (k) or cash to purchase!

Initial Bid PeriodOwner

Occupant Only

Daily BidsInvestor Bids

Accepted

Day 1 Day 5

Uninsurable

Uninsurable & Lottery Example

*Homes are Sold AS-IS!!*HUD will not make ANY repairs. All

disclosures deemed reliable but not guaranteed.

*Highly Recommended to have a professional home inspection!!* Also look into home protection insurance for your clients, some HUD Homes will qualify!

Professional Home Inspection

*All Bids on HUD homes are submitted on www.HUDHomeStore.com

Making the Offer!

* The listing price is determined by HUD to be an estimate of the properties current fair market value

* On the Properties screen click “Submit a Bid”

* You will need your Brokers NAID # to continue

* Once your bid is accepted you will be notified via E-mail from the Asset Manager & the Bid information will be posted on the website.

Place a bid on the Property Details page for the property you are bidding!

You need a Registered HUD Realtor to place a Bid.

When a bid is awarded, the Realtor has 2 business days to deliver contracts to the Asset Manager:

*Detail is IMPORTANT* ALL Documents must be signed in BLUE ink!,

and delivered to the Asset Manager* Earnest Money MUST be made out to HUD * Missing any of these details may cost the

buyer a property & YOUR commission!!

You Won the Bid

Required forms*Each Asset Management Company has a

different sales contract and guidelines*Addendums – Earnest Money Guidelines,

Electronic filing Addendum, Owner Occupant Certificate (if applicable), Radon Gas & Mold, LBP, Earnest Money Forfeiture & Extension Policy, Home Inspection…. etc…

*Pre-Approval letter from a certified/ licensed Lender

Contract Package

*Earnest amount of $500.00 for properties under $50K and $1000 for properties over $50K for PEMCO or HomeTelos. Matt Martin 1% over

$50,000 with maximum $2000.

* Must be certified funds made out to HUD

* Earnest Money MUST be submitted with the Sales Contract

* Money is held by Closing Agent* AM will notify of the Closing Agent

* AM may be listed on Property Condition Summary

Earnest Money

Buyer has 15 Days to inspect the property once contract is executed.

You must contact the FSM for approval to turn on utilities and follow their

guidelines on De-Winterized/Winterization etc.

Buyer has to turn on utilities in their name!

Double Check EVERYTHING

* Buyers Agent has to order Title – you will get an email from the AM or Closing

Company* Buyers Agent has to order Survey –

Closing Agent does NOT do this!* Schedule closing with Closing Agent

(Luna & Luna)* If you are having trouble contacting Closing Agent don’t give UP! You may

have to call multiple times!

Prior to Closing

* Extensions for up to 15 days MAY be granted

* Submit letter from lender starting why you need an extension!

* $375 Fee to extend (fee’s vary)* Make sure this is done 6-7 days

business days prior to contract expiration date!

* There is NO automatic extension!!

Extensions

Never give a HUD Key to Anyone!!HUD does not provide Buyers keys at closing.

Be prepared with Locksmith after closing.

ABSOLUTELY NO REPAIRS prior to closing!!

All HUD Homes are sold AS-IS

EDUCATION – Stay informed and connected policies, forms and information changes all

the time!!

Helpful Reminders

“GETTING AMERICA’S HOMEOWNERSHIP BACK ON THE ROAD!!”

Why Search on HomeTelosFirst:• Comprehensive info and Tools• Detailed Information on buyer

Programs and incentives• Founded in 2001, HomeTelos is a

privately held firm located in Dallas, TX.

Register with www.HomeTelosFirst.com to submit

bids for HUD properties under HomeTelos Management.

Click “Register” and follow the directions provided.

Primary Broker Must be registered first with www.HUDHomeStore.comBroker must have a current NAID

number.

www.HomeTelosFirst.com

http://www.hometelosfirst.com/

Real Estate Professionals Tab: My HUD Contracts HUD Closing Agents HUD Sales Forms Training Videos Register with HomeTelos

When you prepare and submit a HUD-9548 sales contract & addenda package for HomeTelos:

• Simply enter the exact offer terms and HomeTelos will generate a printable contract package for your buyer’s signature.

• HomeTelos provides you with the tools to insure that you submit a complete and accurate contract package the first time.

HomeTelos must receive the original signed contract and all

required addenda within 2 business days from the offer

acknowledged date. Contracts not received within two business days are subject to bid acknowledgement cancellation.

HomeTelos ….continued

HomeTelosFirst.com

HomeTelos ...HUD Sales Forms

HomeTelos HUD Sales Forms

BidSelect.com

Please raise your Hand if you have ANY Questions!!

For questions specific to a property please call

Kim Bramlette directly at 512.705.1932!

Dunamis Realty Group, LLC

Kim Bramlette, CRS, SFRBroker / Owner

Direct #512.705.1932Office #512.372.8113Fax # 512.372.4858

Email: [email protected]

[email protected]

Thank You!!