BUYERS

What do I need to have to start searching for a house to buy?
The most powerful tool you can have in the search for a home is either proof of cash and/or a current pre-approval letter from a bank or lender that shows a seller you are prepared to purchase now.
What is a bank or mortgage lender going to require of me if I need a home loan?
In general you need good credit, consistent job history, proof of good spending habits, and some funds available in your bank account. Every lender has different requirements and you should ask them what specific requirements they will expect from you before you allow them to pull your credit report. It’s very important that you only allow one lender to pull your credit, then take your score and contact other lenders to see what requirements they may have based on your current financial position. You should also be shopping each lender for deals, lower rates, and extra incentives they offer if you use their institution.
What about my current financial status could disqualify me for a loan?
Any negative score on your credit report, loss of or no verifiable income, or credit accounts and/or bank statements that reflect irregular or overspending habits are a few of the major reasons loan applications are denied. When considering purchasing a home, it’s important to take great care of your credit, watch your spending habits, and make sure you’ve been at your current job at least 3 months.
Are there any special programs for first-time buyers?
Yes. Many states, counties, and cities offer first-time buyer, low to middle income buyer, and other unique buyer down payment assistance programs. You can find these programs through your local HUD Housing Counselor (www.HUD.gov) or by going directly to the housing assistance section on your municipality’s website. It’s important to remember that these programs have requirements that you must meet such as taking special classes, financial counseling, occupancy requirements, income requirements/caps, and other terms in order to “repay” the assistance.
How do I get free money to use as a down payment on a house?
Many states, counties, and cities offer first-time buyer, low to middle income buyer, and other unique buyer down payment assistance programs. You can find these programs through your local HUD Housing Counselor (www.HUD.gov) or by going directly to the housing assistance section on your municipality’s website. It’s important to remember that these programs have requirements that you must meet such as taking special classes, financial counseling, occupancy requirements, income requirements/caps, and other terms in order to “repay” the assistance.
How can I help my child or other family member buy a HUD house?
You have several options if you want to help a family member buy a home. The first option is gifting them the money to pay cash for a home that they can bid on during the owner-occupant bidding period. It’s important to understand that HUD will require you to submit a letter stating that you are gifting the funds to the family member WITHOUT requiring them to repay you – meaning they will not allow you to lend the family member the funds. Additionally, you cannot be on the contract or deed in any way. The home would belong to the family member alone.

The second option would be you purchase the home in your own name. Unfortunately, HUD will not allow you to place a bid during the owner occupant bidding period. HUD considers these types of purchases “investment”. The good news is that there are many houses that can be purchased under the “all bidders” bidding period that would allow you to purchase a home as an investor. In these cases, HUD has no occupancy restrictions that would prevent you from allowing a family member to occupy the home. It is important to remember that you and your family member will not be eligible to benefit from homeownership savings such as homestead exemption. This type of purchase will have financial ramifications to you that you should seek advice from an accountant and/or attorney for.

The final option would be co-signing on a FHA loan with the family member. They would be the actual qualifying owner occupant so they could bid on a home during the “owner occupant” bid period. You and the family member would be financially liable for the repayment of the loan. Here again, it is important to remember that you and your family member will have financial ramifications you both should seek advice from an accountant and/or attorney for.
Can I save money on student housing by buying a home?
This largely depends on your financial ability to pay cash or qualify for a home loan, or the financial ability of a third party that may be willing to co-sign on a home loan with you or gift you the cash to purchase a home. If any of these are an option for you, then yes, you would not only pay much less than student housing but you would also be wealth building.
Can I buy a house for a family member but put the deed in my name?
Unfortunately not during the owner occupant bidding period. HUD considers these types of purchases “investment”. The good news is that there are many houses that can be purchased under the “all bidders” bidding period that would allow you to purchase a home as an investor. In these cases, HUD has no occupancy restrictions that would prevent you from allowing a family member to occupy the home. It is important to remember that you and your family members will not be eligible to benefit from homeownership savings such as homestead exemption. This type of purchase will have financial ramifications to you that you should seek advice for from an accountant and/or attorney.
I’m in public service. I was told I can get a HUD house for 50% off the price. Is that true?
Yes, but HUD has requirements for you (and your spouse, if applicable) that include you bidding the full list price but you must qualify for a loan for the full price, you must occupy the home for 36 consecutive months, you cannot have owned a home in the past 12 months, you can only participate in the program once, and the biggest one which is that the home must be in a designated revitalization area. HUD designed this program to enhance urban communities by offering discounts on HUD homes to firefighters, EMTs, police, and teachers. It’s important to note that there are only a few of these designated areas throughout the southeastern US.
Can’t I just get a loan directly from HUD if I buy a HUD house?
Unfortunately not. HUD is not a lender. Rather, HUD is an insurer of FHA mortgages. You must go to a licensed lender or banking institution to get a loan just as you would on any other home for sale.
I’ve got cash and can close ASAP! Will HUD make a special consideration for my offer?
Unfortunately not. HUD does not give any preferential treatment to any bid based on cash/financing, days to close, seller concessions, etc. Rather, HUD only considers the highest net sales price of each bid in order to select a bid winner.
Why does HUD care who buys the house?
The HUD program is in place to offer homeownership opportunities to non-profit organizations, government agencies, or buyers that plan on occupying the home as their primary residence. This means that HUD has to protect the integrity of the program by restricting purchases by other groups of bidders during specific time periods.
Why can’t I just email the listing broker an offer?
HUD only sells their homes through a sealed process. There are no policies or procedures in place that would make it possible to review verbal, emailed, or faxed offers from any party. Only licensed real estate brokerages, that have a current HUD NAID, are eligible to place bids on your behalf.
Why does HUD sell their homes through a sealed bid?
HUD wants to ensure two things through their sealed bid process.
  1. To make absolute certain no one, other than you and your real estate professional, can see your offer.
  2. To prevent pressure to overbid and/or bidding under coercion.
Through its sealed bid process, HUD allows everyone the opportunity to place a single bid they are comfortable with, without stress from what others may be bidding.
Will I be able to change my bid after I place it?
Yes, you can change your bid up until the bid deadline posted on HUD’s website. However, it’s always super important that you try to make your very best offer when you first place your bid, but never more than you are comfortable with. There is no advantage to placing a lower bid and then increasing it before the bid deadline.
Why can’t you tell me the status of my bid?
HUD keeps all bids sealed, even from us! HUD wants to ensure that absolutely no one has access to your confidential bid other than you and your real estate professional. HUD posts the status of your bid the day after the bid period has ended in your real estate professionals’ HUD homestore account.
Can I make a backup offer on a HUD home?
Unfortunately not. HUD does not take back up offers after the sealed bid period has expired. However, if you placed your bid during the posted bid period on HUD’s website, your real estate professional had the option of marking your bid as a “backup” offer. This means that HUD will offer the property to you, if your offer meets HUD’s acceptable net price and the bidder(s) above you had their bid canceled, instead of placing the property back up for bid. It’s important to note that your real estate professional must select “yes” for backup consideration when placing your bid in order for your bid to be flagged as a potential backup offer.
Why doesn’t HUD allow investors an inspection period?
Being a real estate investor means that you have already made at least one real estate purchase and now you are making a further investment in your financial future by making an additional real estate purchase. The HUD program is designed to provide the opportunity of homeownership for owner-occupants, not investors. Allowing investors a 15-day inspection period means there would be 15 days an owner occupant would be missing out on an opportunity to own a home. It is HUD’s expectation that investors carefully examine a HUD property before placing their bid. Since they have already been through the home buying process, investors should have reasonable knowledge about potential latent defects and therefore HUD has determined that extending an inspection period to investors is not necessary.
Why are HUD FHA loans different from traditional FHA loans?
The Federal Housing Administration (FHA) is a division of HUD that insures home loans so your lender can offer you a better loan that includes a low down payment, lower closing costs, and easier credit qualifications. Unfortunately, some people default on these loans and a number of these homes are resold under the HUD home program. When this happens, HUD has a special set of rules regarding the resale of their own properties when a purchaser is obtaining an FHA loan. In general, these guidelines permit buyers to obtain a FHA loan on HUD homes under more lenient lending terms that permit a $100 down payment, repair escrows, and lower minimum property requirements on the appraisal.
Why can’t I move in or make improvements to a house before closing?
HUD is very concerned about your welfare as well as the welfare of the property. Making improvements to the property before closing opens up the possibility of you or a third-party being hurt and/or the property getting damaged. Additionally, HUD homes are sold as-is, where is, without remediation, repair, or improvement. HUD has no reimbursement policy in place that would compensate any buyer that made repairs, remediation, or improvements to the property if they didn’t close or could not qualify for a loan on the property. This same line of thought is why HUD does not allow anyone to occupy the property before closing. Until you close on the home, HUD is responsible for the home and they do not have any policies or procedures in place to ensure your safety or the safety of the home before closing, so occupying the home before closing is never allowed.
Why can’t I have the HUD key after I close on a house?
HUD has many divisions and representatives that have access to the master HUD keys. While every effort is made to notify all parties when a HUD property has sold, there have been occasions when one or more HUD representatives have entered the sold home and/or removed personal possessions accidentally. As you can imagine, this creates a very tense and scary situation for everyone. It’s for your safety and peace of mind that HUD mandates that all buyers rekey the home to a unique lockset at their own expense.
Are HUD homes low-income houses for rent?
Yes and no. Some municipalities have homes for rent that fall under a division of HUD that rents them to low-income families that meet specific qualifications. However, the HUD homes we work with are owned by the federal division of HUD and our homes are not for rent, nor are they in low-income areas. They are only for sale and you must either have cash to buy them or be qualified for a home loan to finance them.
Are HUD homes rent-to-own houses?
No, currently HUD does not have any program that would allow renters the option of “renting to own” a HUD home.
Where can I get more information about rent-to-own houses?
The best source for finding a rent-to-own home is through a licensed real estate agent in the area you are looking for a home in. It’s important to understand that there are very few of these types of homes offered on the market and many websites claiming to have these types of homes usually have incorrect, or outright intentionally false, information. You should always use a licensed real estate agent or real estate attorney to make a home purchase. It is especially important to use them when considering rent-to-own homes.
What’s the difference between renting and owning?
Renting allows you to make a short commitment to a home. Typically, leases are one year and if you are not happy where you are, you have the flexibility to move at the end of your lease. The cost of a rental is usually first and last month’s rent and a security deposit. Your rent payment covers the maintenance of the property except optional renter’s insurance. However, renting means you have restrictions on what you can and cannot do to the property (such as painting the walls) and what can and cannot be in the home (such as a pet). Also, your landlord may have other restrictions that you do not agree with and that can be tough to live with for a whole year. Owning a home means you are wealth building and making an investment in your own future – just like nearly 64% of the population today. When you own a home you are responsible for the maintenance of your home as well as all taxes but you also have the freedom to make modifications to the home, have pets, and truly have the opportunity to live what the term “pride of ownership” means. However, unless you pay cash for a home you will have a mortgage that includes interest, taxes, and insurance; and if you’re unhappy where you are, you have to go through the home selling process in order to pay your loan off so you can move. To own a home, you will need a down payment, closing costs, and some additional loan costs.

LENDERS

FHA Single Family Housing Policy Handbook (HUD Handbook 4000.1)
FHA REO HANDBOOK INSTRUCTIONS
  1. Click on this link to access the Online SF Handbook
  2. Click on “Online SF Handbook” (the top selection in the right side column).
  3. Click on “Okay” when a blue box pops up that says, “You are currently leaving the www.hud.gov website, and headed towards: http://nfs/c07/h02/mnt/173009/domains/100reo.com/html.allregs.com/tpl/public/fha_freesite.aspx. Are you sure you want to proceed?”
  4. A white box will open called the FHA Single Family Housing Policy Library.
  5. Click on “Advanced Search” and type in “REO”.
  6. Results will include the FHA Handbook policies, mortgagee letters, housing notices, and other documents that are applicable to HUD Homes.
  7. For best results, click on the “FHA Handbook” where you can then narrow your search even further by selecting “HUD” or “real estate owned”.
FHA Amendatory Clause & Real Estate Certification
The FHA Amendatory Clause & Real Estate Certification are NOT required on any HUD-owned property as FHA has mandated that all HUD homes are exempt from the clause and certification. However, if your underwriter insists that they be executed, you will need to have the buyer and buyer’s agent sign both documents first and then email them to the appropriate asset manager:
  • FLORIDA & GEORGIA – Sage at Atlanta.Amendment@SageACQ.com to review and execute. The listing broker should be the last party to execute both documents.
  • ALABAMA – Qintco at Tami.Freitas@Qintco.com to review and execute. The listing broker should be the last party to execute both documents.
$100 down on all FHA loans
FHA allows all owner-occupant buyers obtaining an FHA loan to participate in the $100 down payment program. Lenders do NOT have to participate in this program. If you are a participating lender, you need to ensure that the buyer’s agent wrote “$100” on the down payment line in Section 3 of the HUD sales contract. If they didn’t, the buyer’s agent will need to execute an addendum to the contract by doing the following:
  • FLORIDA & GEORGIA – Sage: Go to http://sageacq.com/atlanta-hoc-region/, download and complete the appropriate addendum, and email it to atlanta.amendment@SageACQ.com.
  • ALABAMA – QINTCO: All amendment requests must be made by the selling agent to Tami Freitas at t.freitas@Qintco.com. All amendments are drafted by Qintco’s office. They do not accept 3rd party amendments. Email requests should be accompanied by an updated lender letter stating the financing type and $100 down payment.
FHA Repair Escrows-Contracts with “ie” Financing
HUD contracts that have “203 (b) repair escrow” selected in Section 4 of the HUD sales contract are offered FHA insurable if the home is repaired to meet FHA minimum property requirements (MPR) within 30 days after closing (never before). These homes come with a Property Condition Report/Summary that outlines current MPR requirements. The buyer is responsible for paying for a new FHA appraisal that must affirm or refute the existing repair escrow items. It is important to note that the new FHA appraisal may reflect additional MPR items. The buyer must obtain estimates from a licensed contractor to remediate all MPR items. The repair escrow cannot exceed $10,000 (plus the 10% reserve). If it does, the buyer will have to cancel their contract or convert their FHA loan to a Streamline or 203K loan. The repair escrow is not a seller credit or gift and cannot be collected in cash from the buyer at closing. Rather, 110% of the repair escrow must be added to the buyer’s mortgage. No one can waive or decline the repair escrow. After closing, the buyer has 30 days to complete all repairs and schedule a follow-up home inspection with the FHA appraiser or a FHA compliance inspector. If the repaired home meets FHA’s MPR, the lender should authorize the HUD Buyer Select Closing Agent to release the escrow funds to the buyer. To modify the repair escrow, see below:
  • FLORIDA & GEORGIA – Sage: The lender is required to prepare a letter (on letterhead with full contact information) explaining that the repair escrow modification is a condition of the loan as supported by the new FHA appraisal. The letter is to be given to the buyer’s agent. The buyer’s agent must go to http://sageacq.com/atlanta-hoc-region/, download and complete the appropriate addendum, and email it to atlanta.amendment@SageACQ.com accompanied with the lender’s letter.
  • ALABAMA – QINTCO: If a lender wants to increase or decrease a repair escrow, no amendment is necessary as the repair escrow is between the lender and the buyer, not HUD. However, if HUD’s appraiser determines a repair escrow is required, one MUST be collected at closing, even if it’s just $1.00. A repair escrow can never entirely be removed.
Repairing HUD Homes Before Closing
HUD homes are sold as-is, where is, without remediation or repair. HUD will not allow, nor make, any repairs to any HUD home before closing – this includes installing any appliance or other mechanical system. HUD will also not adjust the sales price nor offer concessions due to repairs, damage, or the home failing to appraise for the sales price.
Who should the appraiser contact for access info and confirmation of active utilities?
The appraiser should always contact the buyer’s agent to ensure the buyer has obtained written approval from HUD’s Field Service Manager to activate the utilities in their own name. Once confirmed, the appraiser should obtain the access information from the buyer’s agent.

TITLE COMPANIES AND REAL ESTATE ATTORNEYS (BSCAs)

FL & GA - How do I get set-up to use the Yardi portal?
The real estate attorney/title company will submit an email request to bsca.atlanta@sageacq.com. Requests must contain the following: Super user first name, last name, email address, phone number, company name and Title ID number.
FL & GA - How do I get my portal access re-activated?
The real estate attorney/title company will submit an email request to bsca.atlanta@sageacq.com and HUDhelp@yardi.com. The request must contain the user name and the Title ID number.
FL & GA - How do I schedule a closing?
The upload of a pre-closing package (Final HUD-1, Warranty Deed, tax bills, completed closing instructions and any other supporting documentation) will suffice to notify Sage of an upcoming closing. The HUD asset manager asks that this be uploaded at least 5 business days in advance (not including the closing date).
FL & GA - How do I report a title or HOA issue?
Title issues must be reported to compliance@sageacq.com along with all supporting documentation. HOA issues must be reported to Dione.Guillory@SageACQ.com AND Tristan.McGinnis@SageACQ.com with a thorough description of the issue and accompanied with all supporting documentation. The HUD asset managers ask that this be done at your very earliest convenience to avoid closing delays. The subject line of your email should always include the HUD Case# and property address.
FL & GA - Who will be my contact at Sage?
Sage team members are assigned to cases as the pre-closing package is pulled from the Yardi portal for review.
FL & GA - Will HUD allow tax bills, etc. to appear on the HUD-1?
Only current year tax bills may appear on the HUD-1/CD.  Past due taxes, all HOA invoices and all utility invoices must be submitted to Sage for review and payment prior to closing at closing.invoice@sageacq.com. The HUD asset managers ask that this be done at your very earliest convenience to avoid closing delays. The subject line of your email should always include the HUD Case# and property address.
AL - How do I schedule a closing?
A pre-closing package (Final HUD-1/CD, separate breakdown of seller paid closing costs (where necessary), Special Warranty Deed, tax bills/receipts, completed closing instructions, HOA/utility bills/receipts and a copy of buyer’s Power of Attorney, where applicable) will be emailed to 6aclosings@qintco.com.  The closing date should be specifically referenced in the body of the email. The subject line of your email should always include the HUD Case# and property address.
AL - How do I report a title issue?
Title issues must be reported to Tricia Cavitt (t.cavitt@qintco.com) and Christie Perry (c.perry@qintco.com) along with all supporting documentation. The subject line of your email should always include the HUD Case# and property address.
AL - Who will be my contact at Qintco?
Tricia Cavitt via email at t.cavitt@qintco.com or via phone at 615-784-5409. The subject line of your email should always include the HUD Case# and property address. If calling, please have the HUD Case# and property address handy.
AL - Will HUD allow tax bills, etc. to appear on the HUD-1?
Only current year tax bills may appear on the HUD-1/CD.  Past due taxes, all HOA invoices and all utility invoices must be submitted to Qintco via email at 6AClosings@Qintco.com for review and payment prior to closing. The subject line of your email should always include the HUD Case# and property address.
ALL HUD HOMES - What inspections will HUD provide?
Property Condition Reports (PCR), termite inspection (on FHA loans), termite (live infestation) treatment (on FHA loans, if needed), LBP Evaluation Assessment (on FHA loans, where required) and LBP Stabilization up to $4,000 if cost of stabilization, in total, is $4,000 or less. If the LBP stabilization costs exceed $4,000, HUD will not pay anything toward the cost of stabilization and the buyer will have to switch their loan to a 203K or Streamline loan or cancel their contract.
ALL HUD HOMES - Outside of loan costs, what other costs should I prepare the buyer for?
The buyer will be responsible for: appraisal, septic inspection, well inspection, environmental report, structural engineer report, survey, home inspection, utility activation/inspection, mechanical systems check, seller and buyer closings costs (minus what the buyer’s agent entered on line 5 of the HUD Sales Contract) and/or FHA compliance inspections.
ALL HUD HOMES - Who will sign the Warranty Deed?
One of many authorized individuals will sign the deed.  The signature line should read only “Secretary of Housing and Urban Development”.

REAL ESTATE PROFESSIONALS

HUD-Registered Buyer Select Closing Agents (BSCAs)
CLICK HERE to see HUD-Registered Buyer Select Closing Agents (BSCAs).
How do I show a HUD property?
All HUD properties are vacant and on a combination and/or Supra lockbox. While HUD mandates that your broker be registered to show and sell HUD properties, they do NOT require that you or your broker be a REALTOR® or affiliated with any real estate board or multiple listing service in order to show and sell their properties.

Showing instructions for our HUD properties can be found in the MLS agent remarks, online show assist, Agent Inbox, or by simply calling 800-454-3422 and pressing “1”.
Commission on HUD homes
HUD offers a 3% commission on most properties. Some homes, that HUD has deemed hard-to-sell, are offered at a flat $1,000 commission. You must always check HUD’s website for verification of the commission offered on a specific property.
Required escrow deposit on a HUD property
Offers $1-$50,000 must make a $500, certified, escrow deposit. Offers $50,001 and up must make a $1,000, certified, escrow deposit. Other escrow amounts are not permitted. Every HUD property is under HUD’s Buyer Select Closing Agent (BSCA) program. Therefore, the CERTIFIED escrow deposit is always to be made payable to THE TITLE COMPANY OR REAL ESTATE ATTORNEY OF THE BUYER’S CHOICE.

However, you are never to give the check to the title company or real estate attorney. Rather, you are to deliver the escrow funds, a copy of the contract, and the escrow cover sheet to the listing broker.

Closing costs HUD will pay
HUD will pay up to 3% towards ALL closing costs – seller’s and buyer’s – except for investors. HUD will NOT pay any closing costs on investor contracts. HUD’s “usual and customary closing costs” only include the real estate commissions. Any request for closing cost assistance must be entered when your bid is placed. Closing costs cannot be added or renegotiated later. Any unused portion of the closing costs will be credited back to HUD at closing.
Who selects the closing agent on a HUD house?
Every HUD property is under HUD’s Buyer Select Closing Agent (BSCA) program. Therefore, the buyer must select their own title company or real estate attorney. You and your buyer can click on our “HUD-Registered Buyer Select Closing Agents (BSCAs)” link to select a firm that is already registered to close HUD properties or they may select any other firm of their choice. However, if that firm is not registered, it will be your responsibility to register them which includes ensuring they have the proper licenses and insurance as mandated by HUD.
Modifying, canceling & status update on a HUD bid
Bids can be modified or withdrawn at any time before the bid deadline. You can do this by going to the HUD homestore website, logging in to your account, and clicking on “search” under the “Review Your Bids” section. DO NOT enter any search criteria. Your bid should be the first one on the list. Click on the bid confirmation number, scroll all the way to the bottom, and you will see the “modify” and “withdraw” buttons.

No party can give you a status update on your bid. All bids are sealed, even from the listing brokers. The ONLY way to check the status of your bid is for you to log in to your HUD Homestore account and click on “search” under the “Review Your Bids” section. DO NOT enter any search criteria. Your bid should be the first one on the list. You want to look under the “Bid Status” column and you will see a 2 or 3 letter abbreviation. If you hover over the “?” you will see a description of what the abbreviation means. All abbreviation explanations are very clear EXCEPT the “CA” which tells you the asset manager has cancelled your bid! What this actually means is that the asset manager has released (cancelled) your buyer’s social security number so they can bid on another property if they want to because they didn’t win the bid on the current property.
Reports HUD provides to the buyer
HUD will provide Property Condition Reports (PCR), termite inspection (on FHA loans), termite (live infestation) treatment (on FHA loans, if needed), LBP Evaluation Assessment (on FHA loans, where required) and LBP Stabilization up to $4,000 if cost of stabilization, in total, is $4,000 or less. If the LBP stabilization costs exceed $4,000, HUD will not pay anything toward the cost of stabilization and the buyer will have to switch their loan to a 203K or Streamline loan or cancel their contract.

Buyer will be responsible for: appraisal, septic inspection, well inspection, environmental report, structural engineer report, survey, home inspection, utility activation/inspection, mechanical systems check, seller and buyer closings costs (minus what the buyer’s agent entered on line 5 of the HUD Sales Contract) and/or FHA compliance inspections.
HUD home utility activation
HUD does not activate utilities. You and your buyer must apply for utility activation with the FSM. Links for each state below. Complete the appropriate FSM utility activation application and credit card forms and email them to the FSM along with a copy of your ratified contract. FSMs ask for a 48 hour processing period. Utility activation may be denied or conditionally approved without authorization for certain utilities if the FSM has determined there are safety issues and/or missing/damaged mechanical systems. FSM will not fix or install any systems to remediate any existing mechanical problems. This includes any additional inspections that may be required by the utility companies to activate utilities. Utilities must be turned off at the end of the approved utility activation period-which is never to exceed 3 days.
Amending the HUD contract
HUD allows certain modifications to the contract by doing the following:
Extension fees on HUD properties
Yes, HUD charges extension (per diem) fees on all HUD properties. You can file an extension to your HUD contract by doing the following:
  • FLORIDA & GEORGIASage: Go to http://sageacq.com/atlanta-hoc-region/, download and complete the appropriate addendum (under “forms”), and email or overnight it to Sage at Atlanta.extension@sageacq.com or 1850 Parkway Place, Ste. 500, Marietta, GA 30067, along with supporting documentation (if needed, i.e. for title issues or outstanding invoices), and either an updated letter from the lender giving the current loan status and outstanding conditions, or an updated proof of funds letter for cash closings. For first extensions on owner-occupied properties, the extension may be submitted without the extension fee. Investors must always submit an extension fee except in the case of title issues. Second extensions and beyond must be submitted with an extension fee except in the case of title issues. Extension fees are as follows:
    • For sales price $25,000 or less, $150 ($10 per day)
    • For sales price $25,001 to $50,000, $225 ($15 per day)
    • For sales price $50,001 or more, $375 ($25 per day)
  • ALABAMAQintco: Go to https://qintco.zendesk.com/hc/en-us/articles/218807258-Contract-Documents, download and complete the appropriate addendum (Q BSCA Extension Request), and overnight it to Qintco at 3354 Perimeter Hill Dr., Ste. 141, Nashville, TN 37211, along with supporting documentation (if needed, i.e. for title issues or outstanding invoices), and either an updated letter from the lender giving the current loan status and outstanding conditions, or an updated proof of funds letter for cash closings. The extension fee must be submitted with every extension request unless prior approval has been granted by Qintco to submit the extension without it. If this type of approval has been granted, the extension request package may be emailed to j.rudolph@qintco.com. Extension fees are as follows:
    • $375.00, regardless of the sales price
Canceling a buyer’s HUD contract
HUD’s asset managers require a specific cancellation form and supporting documentation to cancel a contract as follows:
  • FLORIDA & GEORGIASage: Go to http://sageacq.com/atlanta-hoc-region/, download and complete the appropriate addendum (under “forms”), and email it to atlanta.cancellation@SageACQ.com along with supporting documentation such as a loan denial and/or unfavorable inspection results. Email subject line should include the property address, HUD case#, and buyer’s name(s).
  • ALABAMAQINTCO: Go to https://qintco.zendesk.com/hc/en-us/articles/218807258-Contract-Documents, download and complete the appropriate addendum (Q Contract Release), and email it to the closing specialist assigned to your file. The email must also contain supporting documentation such as a loan denial and/or unfavorable inspections results AND a written cancellation request letter from the buyer. Email subject line should include the property address, HUD case#, and buyer’s full name in the email subject line.
It is important to note that investors are never eligible to receive their EMD back unless HUD cancels the contract due to a title deficiency at their own discretion.
Buyer access to a HUD house after closing
You will need a locksmith after the closing – at the buyer’s expense.

The property is currently keyed to a master HUD key that thousands of people have access to. To ensure the safety of the buyer, the property, and the buyer’s possessions, HUD mandates that the buyer rekey the entire home and any/all outbuildings immediately after closing.

The buyer’s agent may only borrow the listing agent’s key out of the lockbox to gain entry in to the home for the buyer after the closing.
How to register to show & sell HUD homes
The Broker of Record must be HUD-registered with an active NAID number for all related licensees to be eligible to show and bid on HUD properties. Once registered, Brokers may not share their account with their agents. Rather, the broker is to provide their NAID number to their agents in order for them to create their own bidding account on HUD’s website www.HUDHomestore.com. Below you will find step-by-step instructions and links to register your brokerage:
  1. Visit www.HUDHomestore.com
  2. Click on “NAID Application”.
  3. Click on the link for the “SAMS 1111 Bidder Application” – check box “1a” and then complete sections 2 (or 3) thru 20 – print it, sign section 17, and set it aside.
  4. Click your “back” button and click on “SAMS 1111A Selling Broker Certification” – complete all light blue fields near the bottom of the page – print it, sign BOTH sections (Earnest Money Deposit & Non-Discrimination), and set it aside.
  5. Gather clear and legible copies of the following:
    1. IRS Letter 147C or an IRS official document reflecting the business name and EIN (or SS card if you do not operate under an EIN).
    2. A copy of your real estate broker’s license that reflects the expiration date.
    3. A copy of your driver’s license that reflects the expiration date.
    4. A recent utility bill OR bank statement that supports both the address and company name that you provided in your 1111 and 1111A applications.
  6. Put your 1111, 1111A, and 4 supporting documents in one pile and make a copy of all of them. These are for your records in case your application is misplaced or returned for errors.
  7. OVERNIGHT the ORIGINAL 1111, ORIGINAL 1111a, and your 4 supporting documents to:

    Dept. of Housing and Urban Development
    Attention: NAID Application
    Five Points Plaza
    40 Marietta Street
    Atlanta, GA 30303-2306
    800-225-5342

*NAID application processing can be approved in as little as 2 weeks or as long as 4 weeks. After two weeks, you may go to: http://nfs/c07/h02/mnt/173009/domains/100reo.com/html.hudhomestore.com/pages/NaidApplicationStatus.aspx?sLanguage=ENGLISH to check on the status of your NAID application by entering your EIN or SS#. HUD WILL NOT send you an email or letter once you are approved. It is your responsibility to check this link for your approval and assigned NAID.
Repairing HUD Homes Before Closing
HUD homes are sold as-is, where is, without remediation or repair. HUD will not allow, nor make, any repairs to any HUD home before closing – this includes installing any appliance or other mechanical system. HUD will also not adjust the sales price nor offer concessions due to repairs, damage, or the home failing to appraise for the sales price.
DISCLAIMER: Information contained herein is deemed reliable but not guaranteed.
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