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HUD Homes are sold "As Is"
without warranty.
Irregularities in bids:
HUD reserves the right to waive any irregularity in
any bid, reject any and all offers, and to withdraw
a property prior to the bid opening.
Code and Zoning violations:
Brokers should advise Purchasers that the properties
may contain code and/or zoning violations. Our new
contract requires us to identify code violations in
the Property Condition Report.
- Property Condition:
No guaranties and/or warranties are made. No repairs
will be performed by HUD after closing. BA will
ensure that prior to execution of a sales contract,
all available property condition information will
be disclosed in the form of the property condition
report and environment compliance record. Purchasers
are encouraged to have the properties inspected
by a qualified home inspection service company to
satisfy themselves as to the condition of the property.
Purchasers have 15 calendar days from the date of
the Purchaser's signature on the sales contract
to conduct, at the purchaser's expense, any inspections,
test or risk assessments desired by the Purchaser.
Potential Purchasers:
Contact a HUD Approved Broker to visit listed homes
or to make an offer.
HUD may pay selective closing costs up to 5% of
the purchase price, If the closing costs are included
in the bid and inserted on line 5 of the sales contract.
Click here to view
HUD Notice H-2003-02 explaining which closing costs
are allowable and the maximum amount in your appropriate
state.
You may obtain a copy of the "buyer's kit"
on the Internet at
http://www.hud.gov/buyhudhm.html
IN - Insured:
All properties listed as "INSURED" are eligible
for FHA financing. All requests for insurance will
be under Section 203(b) of the National Housing Act
Program. An interest rate will be charged on the loan
and is negotiable between the purchaser and lender.
The mortgage may include some mortgage insurance payments.
The originating lender is responsible for making final
determination whether a property meets MPS and, consequently,
is eligible for FHA insurance.
IE - Insured with Escrow Repairs:
Properties listed as "INSURED WITH ESCROW REPAIRS"
means that certain repairs (not to exceed $5,000.00)
are required to meet Minimum Property Standards for
an FHA mortgage. Purchasers of these properties have
the option to purchase "as-is" with cash
or conventional financing. Or, these properties can
qualify for FHA Section 203(b) mortgages if the purchaser
and lender establish a repair escrow at the closing
for the completion of repairs within 90-days of the
closing. Purchasers seeking FHA insured financing
to buy properties advertised as insurable with repair
escrow are required to establish and fund a repair
escrow with their lender in an amount determined by
the lender to be sufficient to pay for the repairs.
The originating lender is responsible for making the
final determination whether a property meets MPS and,
consequently, is eligible for FHA insurance.
UI - Uninsured:
Properties listed as "UNINSURED" means that
certain repairs and or improvements are required to
be eligible for an FHA 203(k) mortgage. The required
repairs on most of these properties exceed $5000.00.
Purchasers of these properties have the option to
purchase "as-is" with cash or conventional
financing. These properties are also eligible for
a FHA 203(k) mortgage if the required repairs and
or the improvements are completed within 90-days of
the closing.
BA will prepare a property condition
report for each property. Prior to completing a property
appraisal BA will prepare and provide to the appraiser
a comprehensive property condition report that provides
potential purchasers with any information known to
BA that may affect the habitability, functionality
or value of the property, including but not limited
to: the functionality of all heating, cooling, plumbing,
gas and electrical systems and appliances; outstanding
code violations, pending litigation, demolition orders,
other legal actions that may impact the property or
violations of Homeowner's Association covenants that
are known to BA and that will not be resolved prior
to closing; condition of the septic system or well;
existing transferable warranties; copies of Homeowner's
Association documents; the Environmental Compliance
Record, the lead based paint disclosure, and the mold
disclosure. The completed Property Condition Report
will be posted in the property file on EMS and will
be made available to prospective purchasers through
the Internet Property Listing.
During the Initial listing period,
bids may be submitted by all potential purchasers
(Owner Occupants and Investors). Priority will
be given to Owner-Occupant purchasers for the first
10 calendar days.
Owner Occupant Priority Period.
All Owner-Occupant offers received during this 10
day Exclusive Listing, shall be considered to have
been received simultaneously. In order to be
valid for the period, bids must be completed and confirmed
on the Internet.
Owner-Occupant bids will be opened and reviewed and
the highest acceptable net bid to HUD will be selected.
Should there be no acceptable Owner-Occupant bids,
the Investor bids received will be reviewed and posted
daily at 1:00 p.m.
General Public Bid Period.
At the conclusion of the 10-day Exclusive Listing
Priority Period, should the property remain unsold,
all general public bids (including Investors) received
during that 10-day period, will be reviewed and the
highest acceptable net bid to HUD will be selected.
In the event the property remains unsold after these
bid openings, daily bids received by 11:59 p.m. will
be reviewed and results will be posted the next day
at 9:00 a.m.
Bids received on the same day shall
be considered to have been received simultaneously.
Friday, Saturday and Sunday bids will be reviewed
simultaneously on Mondays at 1:00 p.m., and the highest
acceptable net bid to HUD will be selected.
In the event the property remains
unsold, the bids (Owner-Occupant and General Public)
will be reviewed and posted daily at 9:00 a.m. and
the highest acceptable net to HUD bid shall be selected.
This listing will remain in effect until the listing
has been sold or withdrawn from the market to be reanalyzed.
Bids must be completed and confirmed before 11:59
p.m. in order to be valid for that day and will be
opened the next day excluding Friday, Saturday and
Sunday which will be opened on Monday. Bids
must be completed and confirmed on the Internet before
11:59 p.m. in order to be valid for that day.
HUD Approved Brokers will continue
to show properties and prepare complete contracts.
Brokers may submit bids through internet bidding at
this web site.
Brokers are required to review bid
announcements to verify if their offer was the selected
offer. Within 48 hours after the announcements
are posted, Brokers must submit the original written
NEW HUD Sales Contract Form 9548 (1/99) along with
all necessary addenda to:
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For
Iowa, Minnesota, Nebraska, North Dakota, South
Dakota and Wisconsin
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BestAssets
c/o Bid Administrator
501 Marquette, Suite 1200
Minneapolis, MN 55402
Office:
(612) 333-7450
Toll-free: (888) 902-2378
Fax: (612) 333-6474
E-mail:
Minneapolis Regional Office
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To be acceptable, hard copies must
contain no errors.
REMINDER: Brokers must
check the web site on a daily basis for available
properties and bid announcements. If your bid
is selected, a completed contract (with the required
Addenda) must be in our office within the next 48
hours of Bid Result Publication or it will be considered
canceled and the second
highest acceptable net bid to HUD will be selected.
If your bid is selected, a completed
contract (with the required Addenda) must be in our
office within the next 48 hours of Bid Results Pubication
or it will be considered canceled and the second highest
acceptable net bid to HUD will be selected.
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For
Iowa, Minnesota, Nebraska, North Dakota, South
Dakota and Wisconsin
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BestAssets
c/o Bid Administrator
501 Marquette, Suite 1200
Minneapolis, MN 55402
Office: (612) 333-7450
Toll-free: (888) 902-2378
Fax: (612) 333-6474
E-mail:
Minneapolis Regional Office
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SALES CONTRACT and REQUIRED ADDENDA:
- HUD SALES CONTRACT Form 9548 Revision
(1/99).
- Attach the following Addenda:
- Lead
Paint Addendum, if the property was built
prior to 1978.
-
Notice to Purchasers Addendum when the offered
amount exceeds the appraised value at the time
the offer is submitted.
- Certification
of Owner-Occupant, if purchaser is an owner-occupant.
- Inspection
Addendum.
- Letter from a Financial Institution
acknowledging that purchaser has funds available
for downpayment.
- Mortgage Pre-Qualification Letter
from a lending institution, if the purchase is
to be mortgaged, stating that an in-house credit
check has been performed and the purchaser has
been pre-qualified for a mortgage up to a specified
mortgage amount.
- Certification from a Financial
Institution, if the purchase is cash, stating
that funds are available on the day of closing.
- Radon
Gas and Mold Notice and Release Agreement
Click
here to download required forms, Lead Based Paint
Addendum, Certification of Owner-Occupant, Radon Gas
and Mold Notice of Release Agreement and other forms.
To obtain an original NEW HUD Sales
Contract Form 9548 Revision (1/99):
- Order the forms by calling 888-902-2378
or Fax your request on company letterhead to 612-333-6474
- Contact our
offices.
Certification of Owner-Occupant
Status: All bids by owner-occupants, who
are purchasing properties listed in the owner-occupant
category, must include an Owner-Occupant Certification.
Sanctions will be immediately imposed upon Brokers,
Agents and Investors found to
be abusing the system.
Flood Insurance Notification - The purchaser
shall provide the Closing Agent proof of flood as a
condition of closing for all improved properties located
in a special flood hazard area where flood insurance
is available through the National Flood Hazard Insurance
Program, even if it is not required by the Purchaser's
lender, if any. This requirement does not apply to vacant
lots, properties sold to ACA partners that are scheduled
for demolition or properties sold without any type of
Federal Assistance including, but not limited to discounts,
PMM's sales incentives
and closing cost assistance.
You may withdraw an electronic bid
by sending us an e-mail or fax, no later than 10:00
a.m. on bid opening day.
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For
Iowa, Minnesota, Nebraska, North Dakota, South
Dakota and Wisconsin
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BestAssets
c/o Bid Administrator
501 Marquette, Suite 1200
Minneapolis, MN 55402
Office: (612) 333-7450
Toll-free: (888) 902-2378
Fax: (612) 333-6474
E-mail:
Minneapolis Regional Office
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The message must include:
- Broker's Name
- Tax ID Number or SSN
- Real Estate agent's name and telephone
number
- Reason for cancellation
- Key information concerning the
bid:
- Case Number
- Address
- Bid Confirmation Number
Properties that are not sold as a
result of direct sale or during the Exclusive Listing
Period will be eligible for counter offers. If after
fifteen (15) calendar days of the 30 day Initial Listing
Period we have not received an acceptable offer, we
will consider a counteroffer that has a net value
equal to or greater than ninety-five percent (95%)
of the initial listing price if the offer that has
been made has a net value of at least eighty-five
percent (85%) of the initial listing price.
Owner Occupants Only:
3% Minimum Down payment for FHA financed
properties.
Maximum mortgage amount 97% of the appriased
value
or sales price whichever is lower.
Investors:
1 unit: 25% Minimum Down payment,
for FHA financed properties;
2 to
4 units: 15% Minimum Down payment, for FHA
financed properties.
HUD requires all bids received during
the Exclusive or Extended Listing Periods be backed
by earnest money in the form of cash or certified
funds and the Selling Broker submit with the bid,
a certification that the earnest money has been deposited
in the Selling Broker's escrow account. No later than
seventy-two (72) hours following receipt of a signed
sales contract, the Selling Broker may be required
to deliver the funds to HUD's closing agent in accordance
with local custom.
Required Earnest Money: (to
be deposited in the Selling Broker's Escrow Account).
(Cashier's check or money order only)
- $1,000 for offers greater than
$50,000;
- $500
for offers $50,000 or less,
- 50% of the Listing Price for Vacant
Lots
The following provisions are applicable
in all instances except those where HUD is unable
or unwilling to close the sale, in which case the
entire amount will be returned.
Investor Purchasers:
- Uninsured Sales: 100% of the deposit
will be forfeited to HUD for failure to close, regardless
of the reason.
- Insured Sales:
- 50% of the deposit will be forfeited
to HUD for failure to close if the purchaser is
determined by HUD to be an unacceptable buyer.
- 100% of the deposit will be forfeited
to HUD if the sale fails to close for any other
reason.
Owner-occupant Purchasers:
Return 100% of the deposit when:
- There has been a death in the
immediate family (purchaser, spouse or children
living in the same household).
- There has been a recent serious
illness in the immediate family that has resulted
in significant medical expenses or substantial
loss of income, thus adversely, affecting the
purchaser's financial ability to close the sale.
- There has been a loss of job
by one of the primary breadwinners, or a substantial
loss of income through no fault of the purchaser.
- For an FHA insured sale, HUD
(or a D.E. underwriter) determines that the purchaser
is not an acceptable borrower. For an uninsured
sale, the purchaser was pre-approved for mortgage
financing in an appropriate amount by a recognized
lender and, despite good faith efforts, is unable
to obtain mortgage financing. "Pre-approved"
means a commitment has been obtained from a recognized
mortgage lender for mortgage financing in a specified
dollar amount sufficient to purchase the property.
- There is other equally good cause,
as determined by BestAssets, in keeping with the
spirit and intent of the above policy.
Return 50% of the deposit when:
For an uninsured sale, despite good
faith efforts by the purchaser, there is an inability
to obtain a mortgage loan from a recognized mortgage
lender.
Forfeit 100% of the deposit when:
- No documentation is submitted.
- Documentation fails to provide
an acceptable cause for the buyer's failure to
close.
- Documentation is not provided
within a reasonable time following contract cancellation.
Vacant Lot Sales:
The purchaser is considered
to be an investor and instructions pertaining to investors
will apply.
BA will provide, at no charge, one
copy of the appraisal to the winning bidder for use
in obtaining a mortgage loan. If, for any reason,
the winning bidder's lender requires a new or updated
appraisal report, the cost of that report will be
the responsibility of the winning bidder. However,
the lender for a winning bidder obtaining any type
of FHA insured financing report except a 203(k) rehabilitation
mortgage must use the Contractor provided FHA appraisal
report unless the report is more than six (6) months
old on the date the sales contract is executed.
HUD pays certain Closing Costs up
to 5% of the purchase price, IF the
closing costs are included in the bid and inserted
on line 5 of the sales contract.
Click here to view
HUD Notice H-2003-02 explaining which closing
costs are allowable and the maximum amount in your
appropriate State.
All
purchasers must close on their contract acceptance
date.
ALL SALES ARE EXPECTED TO CLOSE WITHIN
THE APPLICABLE TIME FRAME IDENTIFIED ON LINE 9 OF
THE SALES CONTRACT.
Closing Extension Request:
If the closing is not expected to occur on the specified
date on line 9 of the HUD Sales Contract 9548, the
Broker should contact HUD's Closing Agent at least
two weeks prior to that date to request an extension.
BestAssets, as HUD's Representative, may grant an
extension of closing time and, if approved, each extension
will be for a period of fifteen (15) days:
- Documentation submitted with the
extension request must establish that a closing
can reasonably be expected to occur within the extension
period.
- The extension request must be accompanied
by a cashier's check, money order or other certified
funds in the appropriate amount and made payable
to HUD. The fee is based on the Contract Sales Price:
| Contract Sales Price equal to or less than $25,000
Extension fee is $10 per day ($150) |
| Contract Sales Price of $25,001 to $50,000 Extension
fee is $15 per day ($225) |
| Contract Sales Price over $50,000 Extension fee
is $25 per day ($375) |
- The initial 15-day extension will
be provided for owner occupant purchasers, at no
cost, if documentation is provided indicating that
proper and timely loan application was made, that
the delayed closing is not the fault of the purchaser
and that mortgage approval is imminent.
- The extension fee will be retained
by HUD. In the event that the purchaser closes
prior to the end of the extension period, the unused,
prorated portion of the extension fee will be credited
to the amount due at closing.
- The
approval of an extension does not obligate BestAssets,
as HUD's Representative, to grant future extensions.
Broker Registration and NAID Number:
You must be a HUD Approved Broker and have a valid
NAID Number (previously supplied by HUD) before performing
Electronic Bidding.
If the Selling Broker is not a HUD
Approved Broker and wants to submit an electronic
bid, you will need to complete Forms SAMS 1111 and
SAMS 1111-A and return them with original signatures
to the appropriate BestAssets
before an electronic bid can be made. Click
here to access these forms.
All Broker Registration requests should
be sent to:
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For
Iowa, Minnesota, Nebraska, North Dakota, South
Dakota and Wisconsin
|
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BestAssets
c/o Broker Administrator
501 Marquette, Suite 1200
Minneapolis, MN 55402
Office: (612) 333-7450
Toll-free: (888) 902-2378
Fax: (612) 333-6474
E-mail:
Minneapolis Regional Office
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Broker Commission: Up
to 5% commission of the purchase price to the Selling
Broker, IF the commission is included
in the bid and inserted on line 6a. of the HUD sales
contract Form 9548 (1/99).
"WHAT IF I NEED HELP?"
If you need help, you can obtain it several ways:
- There will be an on-line help screen.
It provides complete instructions for filling out
the HUD sales contract, and shows the corresponding
input for items required for submission. You
will be able to access this document from the Internet
at the appropriate State Bidding Screen, or click
on a numbered item on the bid submission screen.
- You can also call, during the hours
of 8:00 a.m. through midnight central
time at (888) 902-2378
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