Listing and Bidding
Procedures Index
Please select a topic from the list below:
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. Code and Zoning status
must be determined by the Purchaser.
Property Condition:
No guaranties and/or warranties made. No repairs will be
performed by HUD after closing. 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.
Potential Purchasers:
Contact a HUD Approved Broker to obtain a copy of the current
listings, to visit listed homes or to make an offer.
HUD pays closing cost up to 5% of the purchase price, if
inserted on line 5 of the sales contract.
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.
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.
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.
IC- Insurable with Condition(s):
Properties listed as "Insurable with Condition(s)" are
properties having conditions which must be satisfied to fully
meet FHA's Minimum Property Requirements. They are:
- properties appraised without the
benefit of the utilities being activated during the time of
the appraisal,
- properties with flat roofs, and/or
- properties which appear to be
insurable but a certification for a specific item(s) is
required).
The mortgage lender/purchaser(s) must
have a complete systems check, the flat roof inspection to
assure a two year life, and any other certification needed to
satisfy the appraiser's concerns listed on the Appraisal VC
form performed by a reputable individual or firm at the
purchaser(s) expense to ensure complete system functionality
prior to loan closing.
After completion of lender/purchaser(s)
inspection, the sales contract could be modified to reflect
either an Insured (IN), Uninsured (UI), or an Insured with
Escrow Repair (IE) sale in instances where lender/purchaser(s)
provide sufficient documentation to support change in
financing. Modification of the sales contract will only be
effective if and only if it is signed by both Purchaser and
Seller.
If repairs are required that do not
exceed $5,000, the loan may be financed as a 203(b) repair
escrow and the lender may process the loan using the
instructions for cases with repair escrow. If repairs are
required that exceed $5,000, the loan may be processed with
Section 203(k) financing provided the cost of repairs are in
compliance with REO program policies.
New listings are available weekly on
Friday mornings.
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 the first 5 days of
this 10-day period, shall be considered to have been received
simultaneously. In order to be valid for the 5 day priority
period, bids must be completed and confirmed on the Internet
no later than 11:59 p.m. on Tuesdays.
At 1:00 p.m. on Wednesdays, Owner-Occupant bids received
through Tuesday at 11:59 p.m. 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
Owner-Occupant daily bids received for the remaining five days
will be reviewed and posted daily at 1:00 p.m.
At each such daily bid opening, the highest acceptable net
Owner-Occupant bid will be selected.
General Public Bid Period.
At the conclusion of the 10-day Owner-Occupant Priority
Period, should the property remain unsold, all general public
bids (including Investors) received during that 10-day period,
will be reviewed and posted 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 after these bid
openings, daily bids received by 11:59 p.m. will be reviewed
and results will be posted the next day at 1:00 p.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 1:00 p.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 or Interactive
Voice Response System (IRV) 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 should submit bids through Internet Electronic Bidding
by one of two means:
- Internet Bidding at this web site,
- Interactive Voice Response System (IRV)
at 1-877-799-9958:
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:
BestAssets-CitiWest JV
3420 Norman Berry Drive, Suite 600
Atlanta, GA 30354
Telephone: (404) 768-1400
Fax: (404) 768-4010
E-mail:
atlanta@citiwestinc.com
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.
SALES CONTRACT and REQUIRED ADDENDA:
- HUD SALES CONTRACT Form 9548 Revision
(1/99). Only use ORIGINAL 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.
Click here to
download required forms, Lead Based Paint Addendum,
Certification of Owner-Occupant and other forms.
Certification of Owner-Occupant
Status for Cash Purchases: 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.
You may withdraw an electronic bid by
sending us a fax, no later than 10:00 a.m. on bid opening day.
BestAssets-CitiWest JV
Fax: (404) 768-4010
The message must include:
- the Broker's Name,
- Tax ID Number or SSN,
- the agent's name and telephone
number,
- and key information concerning the
bid:
- Case Number,
- Address,
- and Bid Confirmation Number.
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.
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 in 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 CitiWest / BestAssets-CitiWest, 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.
HUD pays certain Closing Costs up to 5%
of the purchase price, IF inserted of 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 or before
sixty (60) days of 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 does not 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.
CitiWest, 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 amount of $150.00 made payable to
HUD.
- 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 $150 ($10 per day for a 15-day
extension) is an extension fee and 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 CitiWest / BestAssets-CitiWest, as HUD's
Representative, to grant future extensions.
Broker Commission: Up to 5%
commission of the purchase price to the Selling Broker,
IF inserted on line 6a. of the new HUD sales contract
Form 9548 (1/99).
Broad Listing Broker Fee: MUST be inserted on
line 6b. of the new HUD sales contract Form 9548 (1/99):
Georgia: 0.47%
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