1.Welcome to PEMCO!Successfully Selling HUD Asset Management Company contracted by HUD toHomes in California manage the HUD Sales Process in 26 States and U.S. Territories.Presented by: Areas defined as 1A, 2A, 1D, 2D. 2,S PEMCO, Ltd. has been performing marketingAngie Nwanodiand management services for HUD for moreThe ACG Group, Realtors At Evergreen Realty Realtors than 10 yearsHUD Local Listing Broker for PEMCO, Ltd. Most recent contract with HUD in 2010 to expandAsset Management Contractor to the US Department of HUD in across the country in M&M3!areas 1A, 2A, 1D, 2D, & 2S Were excited about bringing our team to you andRevised 06/28/11 working with Real Estate Professionals to move HUD homes!Dynamics of the HUD Sales Mortgagee Compliance Process for M&M3 Manager (MCM) One Nationwide Contractor Michaelson, Connor & Boul (MCB) Michaelson, HUD Based out of OklahomaSanta Ana HOC Performs a variety of pre- and post pre- conveyance services to ensure that HUDs HUD interests are protectedMortgagee Field Services Asset Manager Conveyance conditionCompliance ManagerHUD Designated Guidance to Mortgagees regarding claims and Manager**PEMCO** Closing conveyance MCM (1) FSM (2)AM (2)Agent Ensure marketable title Field Services ManagerAsset Manager (AM) (FSM)Multiple Contracts per RegionAM manages & markets sales process and properties Properties to be assigned randomly Ensures accurately and competitively valued Makes sure sales achieve highest net returnFSM provides property maintenance and Minimize holding timepreservation services consisting of: Handles closing and accounting of funds Takes customer service and satisfaction Inspecting the property Securing the property Multiple AMs per region Performing cosmetic enhancements/repairs Properties to be assigned randomly to Providing ongoing maintenance contractors

2. Asset Managers Property Flow Chart / QCRegion 2S Region 2S Covers: Alaska, California, MCM FSM AM ReceivesMarkets Hawaii, Oregon, and Washington Mortgagee InitiatesProperty & Inspect& ensures Safe SecureFHA Claim Ensures Marketable & Marketableand Condition & Condition initialMarketability Equal distribution of inventory conveyanceQC the MCMQC the FSMQC If Issues amongst two AMsto HUD RejectIf IssuesReject RejectProperty PropertyProperty PEMCO, BLB ResourcesWhat is a HUD Home?What is a HUD Home? NOT low-end housing! low- Definition: a one-to-four unit single- Definition: one- to- single- family residence acquired as a result of a foreclosure on an FHA-insured mortgageFHA- Vary in price, location, and condition HUD Homes for sale throughout the state Some are move-in ready, others are notmove- Offered for sale at fair market value, based on a recent appraisal by certified FHA appraisers Sold AS-ISAS-Understanding AS ISAppraisals All appraisals are performed by FHA No warranties, guarantees, or certified appraisers representations about the property, Appraisals are good for 6 months FHA Insurable or otherwise HUD pays for first appraisal. If lender No repairs requires a 2nd appraisal for a Exception: Safe, Secure, Marketable Marketable conventional loan, buyer is responsible Buyers allowed and encouraged to get for fee. If appraisal expires under independent Home Inspections contract, buyer is responsible for new Buyers do NOT acquire bills/liens appraisal. Properties are sold with clear market title 3 3. FHA Appraisal Appraisal ExpirationRequirements The statement of work paragraphs 5.2.1.2.3 andFHA requirements: Appraisals are 5.2.1.2.2 state:good for 120 days. It is lender Appraisals are ordered every 6discretion to allow the buyer to use a months and appraisal and photos 1004D which provides an additional 30 are to be given to the winningdays to the appraisal in a non bidder for use in obtaining a declining market. If the lender requires an additional appraisal, the mortgage loan. If lender requires a 2nd appraisal, buyer pays for it. buyer is required to cover this cost. Who can buy a HUD Home?Buyer Types Continued Owner Occupants Giving priority during certain cycles- 30 daycycles- exclusive list period to O/O bidders Must occupy the house for 1 yearBuyers will fall into one of three categories: CANNOT participate in HUD sales for 2 years after purchase1. Owner-Occupants Owner-2. Investors Investors3. Government Agencies & HUD approved CANNOT Bid until day 31 Non-Profit Organizations Non- No restriction on quantity HUDs Special Programs HUD HUDs Special ProgramsHUDProperties which are eligible for HUDs special HUDprograms will list to a lottery round before they round Good Neighbor Next Doorare listed for sale to the general public Designed to enhance urban communities by offering discounts on HUD homes to Firefighters, EMTs, Police, and Teachers EMTTwo types of lottery round eligible bidders 50% off the property list-price GNND and HUD approved Non-Profit/Govt Agency Non- Profit/Govt- Full time employment & must live and work in Revitalization Area- Information on becoming a HUD Approved Non-Profit Non-Organization is at www.hud.gov Requirements: Property must be located in a designated Revitalization Area Buyer must live in the home for at least 36 months3% LISTING BROKER COMMISSION TO BE PAID ONLY ON Buyer nor spouse may not have owned title to property in last 12 months LOTTERY ROUND PROPERTIES , NOT GNND PROPERTIES Bidder nor spouse cannot have ever before participated in GNND programGNND eligibility will be indicated on the listing 4. Additional GNND notes Get Connected!Resources for agents Must bid 100% of the listing priceWWW.HUDPEMCO.COM - Listing site, calendar of events, updates, registration, forms, etc. Can utilize any type of financing or cash dealOther Important Sites - www.HUD.gov as a national resource for HUD information - www.HUDHomeStore.com HUD listings FHA Financing on GNND - www.HCD.ca.gov - California Dept. of Housing and Community Development Must qualify for entire contract amount prior to discountSocial Media Networks Can finance into the mortgage all reasonable and - networking, news, updates, featured listings, featured info.customary closing costs, including prepaids and real estate- Facebook, Twitter, Active Rain, LinkedIn, YouTube Facebook,commissions PEMCO Buyer Outreach Events HUD will NOT pay any closing costs or real estate commissions on GNND properties HUD WILL ALLOW THE $100 DOWN ON THE GNND PROGRAM Keep your eyes and ears Expectations for Agents open!Quality in all work and all aspects of working with HUD and this process Professionalismwhen interacting with the buying public, other selling agents, and everyone andAgents play a critical every aspect involved in the HUD Selling Process Communication role in the success of thewith not only buyers and those involved with your transaction, but also with thePEMCO team to express concerns or suggestions or ideas that become evident HUD Sales Programto you as you work in the field and become involved in HUD selling MotivationWe want to hear from to make the sales and move HUD Properties! Teamwork you!as a real estate community and with PEMCO to work toward the continued betterment of the California HUD sales process and ensure that the HUD process is always operating as successfully as possible Registering with HUDAny licensed real estate agent can sell Steps to Selling HUD HUD homes HomesBROKERAGES, not individual sellingagents that actually register with HUD Get your NAID number When a brokerage registers with HUD, Register atthe brokerage will receive a NAID www.HUDHomeStore.com number, which will be used by ALLagents in that brokerage 5. Create a Selling Agent Registering with HUD Account Easy and free To become registered, your principleWill need your brokerages active NAID brokerage broker will need to complete thenumber to set up this account Broker Registration Package found atYou will log into this account later when you www.HUDHomeStore.combegin the bidding process NAID Package sent to Santa Ana HOC www.HUDPEMCO.com Accuracy is extremely important HUD Home Store link Or go directly to www.HUDHomeStore.com Process takes 6-8 weeks 6- Register as Bidder in the top right corner Must renew annuallyInstructional videos found on www.HUDHomeStore.com Finding propertiesWho is the LLB? HUD/PEMCO contracts Local Listing Brokers to provide FULL listing services on HUD Unlisted properties owned by HUDHomes www.HUDPEMCO.com LLB Responsibilities: HUD Home Store Linko Lists properties on MLS and posts properties to their Or www.HUDHomeStore.comwebsites Search field on first pageo Most appropriate and mainstream MLS for area Input address and view property contactso Place professional, quality sign in yardo Provides routine inspections and reportso Customer Service & Contract Review & Informational When available for sale: resource on HUD listings and HUD sales process Local Listing Broker (LLB) sign in the yard o Provide wide market exposure of the HUD sales Listed on MLS process and the properties www.HUDPEMCO.como Provides access to HUD properties to ALL NAIDregistered brokers by providing key codes or meeting Provides link to HUD Home Storeagents at property regardless of MLS affiliation Recommended method of searching for HUD Homes Free, public-access website public-No current solicitation Listing Periods Listing CodesProperties will list Daily!!Lottery Properties Some online listings are accompanied with 7 days for special buyer typesNew listingscodes representing the financing Insurable/Insurable with Escrowoptions and/or property conditions of 30 Day Exclusive Owner Occupant Bidding Period Comprised of:9 Days Sealed Bidding the property for sale.Sealed = Bids will accumulate over the length of this 9 daybidding period and will be reviewed on the 10th day of thisperiod20 Days Daily Bidding (o/o bids reviewed daily) ? All bidders allowed on day 31 Uninsurable 5 Days Sealed Exclusive Owner Occupant Bidding Period All bidders allowed on day 613 6. Property Condition CodesLBP StabilizationStipulations for HUD to complete a LBP assessment: - built before 1978 - owner-occupant owner-CodeIndicatesDescription - FHA financingF Flood Zone Property is located in an area where coverage under the National Flood Insurance ProgramMust meet all of the above conditions may be required to obtain a loanHOA Homeowners Property is covered by a HomeownersRequests made to FSM for inspections through AM viaAssociation Association which will most likely require HOAP260 at contract executionfees and dues to be paid by the homeHUD will fund up to $4,000occupantFor stabilization exceeding $4,000 HUD will (at their solediscretion): LBPLead-Based Property was built before 1978 and may a) cancel the sales contract and buyer receives 100% EM backPaintcontain lead-based paint; LBP Addendum Form b) allow to change financing to 203(k), conventional, or 203(k) must accompany the sales contractstreamline (only if less than $5,000)NO ONE IS TO ENTER THE PROPERTY WHILE STABILIZATION OCCURS.THIS WILL DELAY CLOSING.Financing Codes More About IECode IndicatesDescription Repair Escrow only applies to FHA 203(b) financingEscrowNOT a gift from HUD IN Insurable Property meets FHA 203(b) financing Added to mortgagerequirements; no obvious repairs necessary to sales price remains the sameinsure an FHA loan to buyer On the listing you will see: IE Insurable w/Property eligible for a 203(b) FHA loan; Itemized list of required repairsEscrownecessary repairs total less than $5,000 Total cost of these repairs The 110% total that will be added to the mortgageLender responsible for: UI Uninsurable Property requires more extensive repairs after Repairsthe close of escrow and is not eligible for FHA Licensed contractormortgage insurance in the propertys as is CHANGE OF ESCROW: To change the repair escrow, a revised sales contract with new repair escrow amount listed on line #4 is iscondition. needed. Also a lender letter listing the repairs and total amountamount of repairs. These figures must match line #4 on contract. Shows eligibility for FHA 203 (b); cash or conventional do not NO repairs prior to closing!applyLets look atLet www.HUDPemco.com and www.HUDHomeStore.com to learn about: News and Announcements Becoming HUD Registered Signing up for a Selling Agent Account How to Search for Listings Training and Events Calendar Social Media Networks A Listings: Listing PCR (Property Condition Report) Virtual Tours As Is Value vs. List Price Bid Deadlines Property contacts 7. FHA Buyer Benefits Showing and Advertising1.Appraisal is accepted by FHA HUD Homeslenders. No additionalappraisal needed for FHAAll Registered Selling Agents can show andloans.advertise any available HUD PropertyMust adhere to advertising/showing2.1st extension is waived (appliesguidelinesto all O/O buyers) Non-compliance could result in your brokeragesNon-brokerage3.Termite report is ordered and NAID number being suspended!active infestation is cleared Report Ad Non-compliance by downloadingNon-and completing the form on our website4.LBP inspection & clearance. - Email: adnoncompsac@pemco-limited.com adnoncompsac@pemco-HUD pays up to $4,000 repairwork.Advertising RegulationsAdvertising Regulations Do advertise HUD homes in aBe positive and proactive in your HUD Homeadvertising Get creative! professional and ethical manner Do not destroy, damage, or remove the advertising,Refer to HUD Homes as HUD-ownedHUD- owned including signage, of another HUD-registered selling orHUD-acquired or simply, FOR SALE HUD- acquiredSALE listing agent for any HUD Property Do not refer to or advertise properties as distressed,distressedforeclosed, government, must sell or repossessed or any foreclosed, government,sellrepossessed Do not state or imply the price of the property differs from other adjectives with notable negative connotation the list price shown on the PEMCOs Property Listing Site Closing Costs: Use HUD will pay up to 3% closing costsDo not place signage in a HUD propertyspropertyyard. Only the LLB can do so. Do not imply exclusivity Agents can use directionals but do not abuse this right! limit directionals to an appropriate number The HUD Home Sales Process is an OPEN Selling Process Excessive use of directionals will be handled on a per case basis, at the discretion of PEMCO, Ltd.2020 Showing HUD Homes:Advertising Regulations Electronic Lock Boxes Always include the Equal Housing Opportunity Logo HUD Properties will now have Electronic Lock Always include a HUD-Home Disclosure and link to HUD-Boxes placed on them the HUD listing site www.HUDHomeStore.com & Lock Boxes placed on by LLB www.HUDPemco.com for more information. Report Missing Keys to LLB Note any flood plain zones, or other warning MLS will have information about Lock Box information as it appears on the propertys Internetproperty listing, if applicableI dont have an Electronic Lock Box Key, can I don Adhere to all federal, state, county, city and real still access? estate commission advertising regulations as well YES! Provide following info to LLB to coordinate access as compliance with the Truth-in-Lending Act whenTruth- in- advertising HUD Properties State specific real estate license Including but not limited to: Blind Advertising, regulations Drivers license or identification cardDriver regarding directionals, etc. directionals,Your NAID #2019 8. Showing Guidelines Fair HousingIt is HUDs mission to increase homeownership,HUDYou must sign the sign-in sheetsign- support community development and increase access to affordable housing free from discrimination. discrimination.No open houses Areas of Illegal Discrimination: EXCEPTION: Listing Brokers may hold an Race Color open house on their listing ONLY during Religion 11 am- 2 pm.am- National Origin SexAlways secure the property when Handicap mental or physicalleaving and return key to the lockbox Familial Status Please review details in handbook21 21 Complete the Sales Contract Accepted Offer ContractsPackage with your buyer before CA, OR, WA, AK, & HI send to: you bid Buyers signature is your permission to Buyer PEMCO, LTD. place a bid on their behalf 1601 Response Road, Suite 260 If offer is accepted, you only have two Sacramento, CA 95815 (2) business days to submit the entire Office: 916-927-7313916- 927- contract package to PEMCOAttention: Contracts Sales Contract, Addendums, Earnest Recommend Delivery Confirmation/TrackingMoney, Pre-Qual letter, etc.Pre-The HUD Sales ContractPackage Electronic HUD-9548 Sales Contract / Condition of SaleHUD-Note that the Sales Contract for a HUD Sale is a unique contract, different from your state Contract formscontract, Electronic filing of HUD-9548 contract addendumHUD- Owner-Occupant Certification (if applicable) Owner- For Your Protection: Get a Home InspectionInspection Radon Gas and Mold Notice Lender Letter of Commitment / Pre-Qualification Letter Pre- Forfeiture & Extension Policy (Addendum A, Rev. 6/15/2009) Lead-Based Paint Addendum (if applicable) Lead- Flood Zone Addendum (if applicable) Notice to Purchaser Addendum (if applicable) Earnest Money Check with the Earnest Money Certification FormAll documents must be signed in BLUE ink. See http://www.hudpemco.com/2S_forms.htm 22 9. FHA Amendatory Clause Earnest MoneyDeposit Amounts (certified funds ONLY CashiersCashierCheck or Postal Money) Will not be executed on HUD Sales $500 for sales price $50,000 or less $1000 for sales price $50,001 and up Addendum not required; HUD Homes are exempt from the clause EM is made payable to HUD OR BUYERS NAME BUYER NAME(BOTH NAMES on check separated by word OR)and send with Sales Contract to PEMCO unlessproperty is in OREGON (refer to next slide)The FHA Amendatory Clause is intended to ensure that prospective home buyers with FHA-backed loans receive important information in a timely manner about the house toPEMCO will send EM to HUD Designated Closing be purchased. In particular, the Amendatory Clause stipulatesAgent to be held and managed that if buyers have not received information about theappraised value of the home they intend to buy, the buyers are not obligated to purchase the home.EM may be entirely or partially forfeited or refundedif contract fails to close Specifics outlined in Forfeiture and Extension PolicyThe HUD Home BiddingClosing AgentsProcess Chicago Title (Northern CA)HUD Homes are sold via an online electronicbidding process Tiempo Escrow II (Southern CA) Only way to buy a HUD Home Fidelity National Title (OR) Guardian Escrow (Hawaii) In promotion of homeownership, buyerswho are bidding as an owner-occupant owner- Stewart Title of Alaska (Alaska) receive priority for a given amount of time. GBS, LLC (WA)Agents must submit bids on a buyers behalfAdditional Notes aboutSubmitting a Bid BiddingBidding over the as is value isBids can be submitted 24/7 but are not reviewed The as is value = the appraised value isHolidays or weekendsBid may be higher or lower than AS IS priceDaily Bid Deadline is 9:59 p.m. PST (11:59 CentralYou can NOT get a 2nd appraisal when usingTime) FHANo time preference in bidding PEMCO will notify you if you overbid andrequires submission of proof of fundsIf PEMCO receives two acceptable bids which are theexact same amount, we will select the winning bid byNotice to Purchaser Addendum completedrandomized electronic drawing.and submitted with Contract PackageBuyer must bring cash to closingIf you place a bid you wish to withdraw, you musto Can NOT financecancel this bid prior to the days bid deadline. Bid dayo A Subject to Value will not support the overbid Valuecancellation form found on www.HUDPemco.comamount 26 10. Submitting a Bid - Lets go online together & LetOverbiddingcomplete a Sales Contract Options if you have overbid: Go to www.HUDHomeStore.com and find aproperty to bid on - If using FHA, proceed with closingSales contract packages for all buyers in all and verify funds. Buyer pays overbid states found at www.HUDPemco.com amount.(Forms Tab) - Use cash or conventional Complete your Sales Contract using a blue - Cancel contractpen Back up offerVideo tutorials available online 24/7 at Relist www.HUDContractDemo.info www.HUDPackageDemo.infoSubmitting a Bid Lines 1 & 2 The following slides are to assist you withLINE 1: Print purchasers full, legal purchaser questions on the contract pagename and property address (address Bids will be submitted onlinefound on HUDHOMESTORE.COM) The information entered on the bid submission page will become the first page Line 2: Print buyers full, legal namebuyer of the sales contractalong with vesting. Vesting MUST be Your instructional facilitator will provide youfilled in. Vesting can be changed later a sales contract to complete for practice purposes onlyusing an addendum, but in order toaccept contract, vesting must bepresent.Line 3 & EM amount Line 4Line 3: Offered Sales price of property Line 4: Check financing type. If FHA,(1st line) and earnest money amount be sure to check FHA Box PLUS the(2nd line) to be held by PEMCO (3rd FHA type box ( i.e. 203B, 203B repairline) escrow). If using FHA 203B repair Earnest Money Depositescrow, list repair escrow amount on$50,000 or less =$500; $50,001 andline (repair escrow info found onmore = $1,000. Certified fundsHUDHomeStore.COM).HUDHomeStore.COM).(cashiers check or PO Order) to be(cashiermade payable to: BUYER OR HUD(both names on check). 11. Line 4 ContinuedLines 5 & 6 Use TBD to be determined on 3 determined Closing Cost Line 5 HUD will allow up to 3% the purchase price of the spaces. property to go toward closing costs down payment of $ TBDTBD Enter this numeric figure (not percentage) on Line 5 in the amount of $ TBDTBD Commission Line 6a HUD will allow UP to 3% of the purchase price of the for TBD months months property to go toward agent commission If cash or conventional, check Line 6b will populate 3% for Listing Broker Commission appropriate box. Repair escrow doesREMEMBER: Lines 5 and 6a affect the net to HUD. NOT apply!Lines 7 & 8 Lines 9 & 10 Line 7: NET to HUD (offered sales Line 9: 45 days in escrow EXCEPT if price minus closing costs & using 203K financing, then it will be 60 commissions). Winning bid is always days determined by NET to HUD. Line 10: Choose may if buyer wantsmay Line 8: Purchasing Type: Select to be a possible back up bidder if appropriate type of purchaser (i.e. award was not made to him/her. owner occupant, investor, NP)Lines 11 & 12 Line 13 Certification of Line 11: If property was built prior to 1978, LBP addendum must be withPurchaser Use Blue Ink! contract. If buyer uses FHA financing,Line 13: Purchaser must print full, HUD will pay up to $4,000 to stabilizelegal name and sign full, legal name LBP issues. and include complete address of Line 12: Purchaser MUST initial onexisting residence and phone number the line provided for purchaser. Both (not property to be purchased). Be initials on same line or above line ifsure name(s) on lines 1, 2, & 13 all name(s) more than one buyer. DO NOT initial match! Same legal name(s), same name(s), on the line provided for seller (this isspelling, same individual(s). individual(s). for HUD). 12. Certification of Purchaser Certification of BrokerContinuedContinued Line 13: Purchasers social securityPurchaserLine 14: Brokers business name andBroker number. If incorrect, we will request aaddress. This must be the principal copy of identification (i.e. driversdriver broker who is registered with HUD. license and social security card).Principal broker may provide letter Line 13 (cont): Include date contractauthorizing agent to sign on his/her is signed in designated area.behalf. This letter must be on broker Line 13 (cont): DO NOT sign on lineletterhead, original signature, and for seller - Secretary of HUD- this is HUD- accompany each contract. reserved for HUDCertification of Broker orauthorized agent signing Submitting a BidContinued Line 14 (cont): EIN number or SS# in Review your bid and confirm to submit space provided Bid Confirmation Number will be Line 14 (cont): brokers NAID number brokerprovided. Line 14 (cont): brokers phone number broker Enter conf # on page 1 of populated contractpackage. It will auto-populate on Electronicauto- Line 14 (cont): brokers signature (orbroker Filing of 9548 Contract Addendum (pg 4) designated broker signing on behalf of A populated contract package is available at principal broker must have letter)www.HUDPemco.com for you to complete.Accuracy is critical as it will auto populate theinformation you input on page one (version 1.9)Avoid Common Errors! Check Bid Results1. Social Security NumbersOn the bid deadline day, all offers are reviewed2. The buyers name must matchbuyerand then accepted, rejected, or counter- counter- exactly on lines 1, 2 and 13 offered.3. After the contract/bid submissionBids are usually posted at Noon the day afterthe close of bidding (start 2-day deadline) prints out:2-PEMCO will notify you via email if your bid is 1. All signatures must be in blue inkaccepted and the information will be posted onHUD Home Store along with any back-up offersback- 2. Initials on line 12 acknowledging that may be acceptable. Be pro-active andpro-the EM Policy. Only initial on buyersbuyercheck HUDHomeStore.com for results.line (if 2 buyers, both initial on same line). 13. Submitting the ContractContract Correctionsfor a Winning Bid HIGHLY Recommended: Request LLB to review2 business days to return corrected contract prior to sending to PEMCO.contract Ensure the entire package is received at PEMCOsPEMCO office within two days of the notification May require a new contract package Hand Deliver or Overnight Mail the package.Contract will be canceled or awarded Recommended to use tracking method.to next highest bidder if the contract is PEMCO will sign off on the contract and forward it returned still containing errors via email to selling agent and closing attorney The day selling agent receives the ratified contract is the contracts official Acceptance Date contract Date30Contract RevisionsIf you need to change items on thecontract:You can not use white out or liquid paper on any contractual documents!- contact PEMCO immediately- PEMCO must approve and implementthese revisionsCorrections required by PEMCO may mean writing a new sales contract, anew Pre-Qual Letter, obtaining your buyers signatures again .Note: Changes to the indicated method ofMake every effort to submit your contract correctly the financing will always require a new original first time!contract30The Closing TimelineHome InspectionsOptional, but highly recommendedNormal Closingcloses 45 days from contract acceptance15 day Due Diligence PeriodCash Closingcloses 45 days from contract acceptance Borrower must have the home inspection in the first 15203k Closingcloses 60 days from contract acceptance days to avoid losing EM if they should cancel due toproperty issues found during the home inspection.The clock begins when contract has been accepted by PEMCO and property moves to Step 8 MUST Have FSM Authorize your Utility ActivationForm for your Home Inspection Cannot begin process until contract signed 48 hours to complete home inspection after last utility is turned on. Must turn off utilities after inspection 31 31 14. Home Inspections www.HUDPemco.com click on forms; select 2S, find FSMs utility activation form. CompleteFSM Under Contract Vandalismform, provide a copy of sales contract (pg 1), submit payment in certified funds. FSM willgrant permission for utilities to be activated. Download form, complete, and mail toYou must be present at property for the VandalismSac@Pemco-Limited.comandalismSac@Pemco-inspection and have the utilities turned off after inspection.Options for moving forward towardclosing AMS2021 Hartel StreetLevittown, PA 19057800-781-1558Postponing closing and extension fees22 Greeley Street, Ste. 5 603-423- CITYSIDE Merrimack, NH 03054 0313 33 Termite InspectionsStipulations for HUD to provide Termite and WDOLetter: - State or Zone Mandated - FHA financing Buyers cannot move in or startrepairs prior to closing!!Buyer must use FHA financing!Selling agents must accompany HUD will fund section 1 treatment and repairs ifbuyer is using FHA financingbuyers, inspectors, etc. to HUD Properties at all times prior to If the property does not meet above conditions:closing. - Buyer can have termite inspection performed at any time at their own cost if their contract is accepted - Buyer will be responsible for treatment and repairs 32Extensions Canceling the Contract Property Per DayTime Frame Total Extension Fee toSales CostFee Buyer$0 - $25,000$10 15-day increments$150.00If you are made aware that a purchaser is not going to close,please contact PEMCO ASAP$25,001- $50,000$15 15-day increments$225.00 Do not let the contract just cancel on its own. On behalf of HUD,HUD, PEMCO will withhold EM deposit if contract cancels on its own.$50,001 + $25 15-day increments$375.00 Contract may not fall out of compliance. Extensions are purchased and granted in 15-day packages except Use the Contract Release and Earnest Money Disposition for 203(K) financing which will be 30 days ReleaseRequest forms from our website justify reason forRequest If the contract closes prior to the use of all 15 days, the remainingcancellation per-day fee will be pro-rated to the buyer and refunded by escrow accompanied with the necessary documentation to request a Must be submitted in the form of certified funds (cashiers check orrefund . Buyer has 30 days to request EM refund. PO money order)Email to: CancelSac@pemco-limited.com and copy the Local ancelSac@pemco- Fee and Request Form must be submitted to closing agents Listing Broker. no later than 5 days prior to expiration. Be sure to send copies of extension docs to listing broker to ensure communication is recd by PEMCO! * Important to submit these forms prior to the expiration of sales contract Waived fees available (per case basis. First extension waived if buyer is owner occupant).32 15. Pre-Closing Walk ThroughPre- Closing ProtocolRecommend that you complete the day Closing documents need to be intoprior to or the day of closingclosing agent from the lender 5 daysIf lockbox removed coordinate with LLB to prior to closingretrieve key for buyerClosing agent submits to PEMCOIf there are issues, vandalism, etc., contactPEMCO ASAPPEMCO signs documents and propertyClosing will be postponed to attend to issues is released to buyer Extension fee waived35Complete the Survey! After Closing At closing, both you and your buyer will be provided with a shortsurvey about the HUD Home Selling Process. From Property conditions to PEMCOs helpfulness to The buyer can now have Closing Attorney assistance, the survey inquires about yourutilities activated for experiences as a whole in your HUD Home Sale.permanent use and occupy the premisesPlease take the time to complete the survey. The PEMCO team strives to ensure the high-levels of satisfactionAt their own expense, the buyer will need to have both agents and buyers are having in their HUD Transactions, the homes locks changed or re-keyedhome re- and the surveys provide extremely useful insights and data inhelping us to determine how pleased everyone is with our progress. If the survey is not given to you or your buyer please, ask for it! LLB Contact InfoThe ACG Group, RealtorsRealtorsAM & HUD Contact Info 450 N. Mountain Avenue, Suite AUpland, CA 91786 PEMCO Sacramento Office General Questions E-Mail: E- 1601 Response Road, Suite 260 AgentQuestions@ACGRealEstate.com Sacramento, CA 95815Accepted Contract Review E-Mail: E- HUDContracts@ACGRealEstate.com Office: 916-927-7313 916- 927-877.ACG.ASAP x04 877-927-7313 877- 927- 877.224.2727 x 04 Santa Ana HOCWebsite: www.ACGRealEstate.comSanta Ana Federal Building24/7 ACG Inventory Check: www.ACGOffers.com 34 Civic Center Plaza, Room 7015Santa Ana, CA 92701-4003 16. Thank you for attending!