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Showcase Realty LLC is hosting a three-part agent training series to educate agents on successfully selling HUD homes. Showcase is committed to investing time in learning about different avenues of real estate. The first part of the series was a HUD Agent Sales Training for agents in the Charlotte area on how to “Sell More Houses in 2015”. Director of HUD & REO Operations at Showcase Realty LLC, Mike Maniace, presented agents with information on HUD homes and its market.
For part two of the agent training series, Mike Maniace held a webinar focusing on HUD contracts and HUD deadlines. Below he explains the process of the contract with step by step details on how everything works.
The webinar focuses on a HUD contract broken into two separate sections. The first half of the webinar offers an overview of how to fill out a HUD contract while the second half focuses on more detailed information. This is a line-by-line, in-depth detail to tell you exactly what HUD is looking for and how this applies to both owner-occupants and investors.
PART ONE OF THE CONTRACT
Line One – Make sure you’ve bid exactly what is on the site. If you add the middle initial, make sure it’s there on the HUD site and follows into the HUD contract. If you add their full middle name, make sure that follows into the HUD contract. Below line one, is an extension where the address goes, including state, city and zip code.
VERY IMPORTANT: The HUD case number must be in every HUD contract and it will follow throughout the contract.
Line Two – Title style would go on this line. In NC, style means what type of tenancy and we’ll go over the different types later on.
Line Three – Agreed upon purchase price and this comes directly from what you’ve bid on the HUD sites. This line is also where the earnest money and amount goes. List whether an attorney or listing broker is handling this information. Be clear to state the distinction between the three asset managers.
Line Four – Purchaser applying for an FHA loan. When filling out this line, you’re just going to input what type of loan they’re going to do and a lot of times with FHA, with HUD homes, buyers are allowed to do a $100 down payment, which is where you would put that information.
Line Five – When you bid on the HUD site, did you ask for any closing costs? If you didn’t, this line should be zero. If you did, there will be an amount there.
Line Six – The commission section. Selling broker, this is selling broker’s commission addendum, commission right here. And then this is listing; listing broker’s never going to change. You can change the selling broker commission if you would like and that can be done on the HUD site when you’re bidding.
6B is also a commission line.
Line Seven – Deals with net HUD. When you’ve been on HUD sites and you gave this net HUD that will not change. REMEMBER, if you bid, make sure you print your bid notification from HUD after you bid because this will have this number on there and it has to match exactly.
Line Eight – VERY IMPORTANT: You need to know what type of buyer you have bid with on the HUD site. It is either owner-occupant, investor, non-profits, public housing or government agency. VERY IMPORTANT: Need to know, check what box corresponds to which type of buyer that you’re working with or bid with. YOU CANNOT CHANGE THIS TYPE OF BUYER AFTER YOU BID.
Good Neighbor Next Door Program – With HUD homes, there is also a program that offers a discount in closing. They are entitled to possibly up to 15% off of their loan if they do live in the home for three years and that’s only good for this program and we do have a separate section in our series here that you can find this information about the Good Neighbor Next Door Program.
Visit the website if you have any additional questions and stay tuned for part two for an even closer look at HUD contracts.
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