What You Need to Know About HUD Homes
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welcome to:
| JoeBurtonSells.com |
| Before you decide to place a bid on a HUD home, here are a few tips that will make sure you are prepared! |
1). Pre-Approval Letter- Make sure you are pre-approved for a mortgage. When
you place a bid, you will need a detailed pre-approval letter in place if your
bid is selected. You only have 48 hours after your bid is accepted to arrange
financing!
2). Proof of Funds Letter (if applicable)- If you are paying cash, make sure your
bank/financial institution can give you a proof of funds letter. Again, you only
have 48 hours after your bid is accepted to turn this in. If your proof of funds or
pre-approval letter is not turned in within 48 hours, HUD will cancel your bid!
3). Using an Approved HUD Agent- In order to place a bid, you have to contact
a licensed real estate agent who has been approved by HUD to place bids on
behalf of a potential buyer. I am an approved HUD agent.
4). Earnest Money- You have to have a certified check in the exact amount of
earnest money required by HUD dated the same day you place a bid through
us.
5). Placing a Bid- All bids have to be submitted electronically. In order for us to
place a bid on your behalf, we will need you to fill out the proper HUD
contracts and sign them before we can submit the bid. We can do this at our
office prior to the bid deadline.
6). Bid Deadline- All HUD homes have a bidding deadline. When new HUD
listings come on the market, the initial bid period is typically 5-10 days. If HUD
does not receive any acceptable bids, they will re-list the home and accept
bids on a daily basis.
7). Who Can Bid- HUD will give priority to Owner Occupant bidders and Non
Profit Organizations. If you're bidding as an investor, HUD will look at your bid
only after they have not received any qualified bids from an owner-occupant
or a non profit organization.
8). After Your Bid is Accepted- If your bid is accepted by HUD, we have to turn
your entire contract package in to HUD within 48 hours!! This includes all HUD
contracts and addendums, earnest money and a pre-approval letter or proof
of funds letter. If this is not completed within the 48 hour time frame, HUD will
reject your bid.
9). Inspections- HUD performs a property and lead-based paint inspection prior
to listing. If you're interested in a specific HUD home, contact us and we can
set-up a showing and send you the inspection reports prior to placing your bid
(if you choose to bid). If your bid is accepted, HUD will allow you (after a
request is made)to perform your own inspections within 15 days after your bid is
accepted.
10). Closing Time Frame- If you're paying cash, HUD will give you 30 days from
the bid acceptance date to close on the property.
If you're financing your HUD home with a conventional mortgage, or an FHA
loan, HUD will give you up to 45 days to close on your HUD home.
If you're financing your HUD home via conventional or FHA, and you're
obtaining an FHA 203(k) rehab loan as well, HUD will give you up to 60 days to
close on your HUD home.
you place a bid, you will need a detailed pre-approval letter in place if your
bid is selected. You only have 48 hours after your bid is accepted to arrange
financing!
2). Proof of Funds Letter (if applicable)- If you are paying cash, make sure your
bank/financial institution can give you a proof of funds letter. Again, you only
have 48 hours after your bid is accepted to turn this in. If your proof of funds or
pre-approval letter is not turned in within 48 hours, HUD will cancel your bid!
3). Using an Approved HUD Agent- In order to place a bid, you have to contact
a licensed real estate agent who has been approved by HUD to place bids on
behalf of a potential buyer. I am an approved HUD agent.
4). Earnest Money- You have to have a certified check in the exact amount of
earnest money required by HUD dated the same day you place a bid through
us.
5). Placing a Bid- All bids have to be submitted electronically. In order for us to
place a bid on your behalf, we will need you to fill out the proper HUD
contracts and sign them before we can submit the bid. We can do this at our
office prior to the bid deadline.
6). Bid Deadline- All HUD homes have a bidding deadline. When new HUD
listings come on the market, the initial bid period is typically 5-10 days. If HUD
does not receive any acceptable bids, they will re-list the home and accept
bids on a daily basis.
7). Who Can Bid- HUD will give priority to Owner Occupant bidders and Non
Profit Organizations. If you're bidding as an investor, HUD will look at your bid
only after they have not received any qualified bids from an owner-occupant
or a non profit organization.
8). After Your Bid is Accepted- If your bid is accepted by HUD, we have to turn
your entire contract package in to HUD within 48 hours!! This includes all HUD
contracts and addendums, earnest money and a pre-approval letter or proof
of funds letter. If this is not completed within the 48 hour time frame, HUD will
reject your bid.
9). Inspections- HUD performs a property and lead-based paint inspection prior
to listing. If you're interested in a specific HUD home, contact us and we can
set-up a showing and send you the inspection reports prior to placing your bid
(if you choose to bid). If your bid is accepted, HUD will allow you (after a
request is made)to perform your own inspections within 15 days after your bid is
accepted.
10). Closing Time Frame- If you're paying cash, HUD will give you 30 days from
the bid acceptance date to close on the property.
If you're financing your HUD home with a conventional mortgage, or an FHA
loan, HUD will give you up to 45 days to close on your HUD home.
If you're financing your HUD home via conventional or FHA, and you're
obtaining an FHA 203(k) rehab loan as well, HUD will give you up to 60 days to
close on your HUD home.
| If you have any questions, or if you would like to schedule a showing on any HUD home, please don't hesitate to contact us at any time! |
| O: (615) 627.1490 C: (615) 714.6927 josephburton@realtracs.com or realestate@joeburtonsells.com |
615.714.6927
JosephBurton@realtracs.com
JosephBurton@realtracs.com
| Real Living Sterling Properties® 106 Mission Court, Suite 105: Franklin, TN 37067 615.627.1490 Each Office is Independently Owned and Operated Website Designed and Maintained by Shandy Burton |
