Please consider watching our On Demand videos listed below. The information in these presentations is vital to have, as a HUD selling agent or bidder.

 Frequently Asked Questions for Selling Agents

  • BEFORE showing a HUD Home you should verify availability on HUD’s Site. “Active” in MLS does NOT guarantee the property is available on HUD’s site. To check go to: www.HUDHomeStore.com on the Home page in ‘Search Properties’ enter the Property Case # (aka HUD Case #). If the property does NOT pull up that means that HUD has accepted a bid and while it is in this stage HUD will NOT allow new bids to be placed. We do not have access to the bids nor are we involved in the bid acceptance process. We know when you know.

  • UTILITIES. HUD Homes do NOT have utilities on. Only show during daylight hours & do not use the bathroom (no water). Permission to activate utilities for purposes of the home inspection may be requested from the HUD Field Service Manager after the HUD sales contract is executed by the seller. Fees for activation & re-winterization may apply. Not all properties will receive approval for utility activation if known defects exist. REVIEW ADDENDUMS.

  • ALL HUD HOMES ARE SOLD IN THEIR AS-IS CONDITION. FOR YOUR PROTECTION GET A HOME INSPECTION. HUD will not make any repairs nor allow the purchaser to complete any repairs prior to closing/funding, not even lender required repairs. Discuss the property condition & review the property specific disclosures with the buyer & their lender to determine acceptable financing options for an AS-IS sale.

  • HOW TO BID ON A HUD HOME. HUD negotiates directly by bid system on their site and only brokers with an Active NAID # may bid on HUD Homes. Agents are directed to www.HUDHomeStore.com to submit a bid.


1. Why is the property not showing up on HUD Homestore (HHS)?

Once HUD accepts a bid on a property, they remove it from the website. The property you are looking for likely has an accepted bid.

 

2. How do I check the status of my bid?

Log into www.HUDHomestore.com, click on Bidder Functions on the top right corner of your screen, and then select the Review Bids tab to review your bids. You will need to enter at least one of the following to retrieve your offer information: Bid Confirmation Number, Property Case Number (aka FHA Case

Number), Purchaser Last Name, or the Purchaser’s SSN/EIN. For step-by-step instructions, please click here to view the Successfully Selling HUD Homes presentation.

 

3. How do I obtain property specific disclosures and addenda (PCR, LBP, etc.) after bid acceptance?

After you have logged in, and selected the Review Bids tab, click on the confirmation number to view the property details. You will then be able to click the Addendums tab to view the disclosures and addenda for that property. If you are unable to locate a specific disclosure or addendum, please contact our Customer Service Department.

 

4. How do I update my real estate license number under my profile on www.HUDHomestore.com?

Please visit the FAQ page of the www.HUDHomestore.com website for tutorial videos and instructional guides on various topics, including registering, adding multiple licenses, updating license expiration dates, and inactivating a license.

 

5. I know a property has an accepted bid. Why is it not appearing under Bid Results on www.HUDHomestore.com?

Please note that the property will not appear on the Bid Results page until the contract has been ratified, which may occur several days after the bid is accepted. Please also note that properties only appear on the Bid Results page for 14 days.

 

6. How exactly does FHA 203(b) with Repair Escrow financing work?

Properties listed as Insurable with Escrow (IE) qualify for FHA 203(b) with Repair Escrow. This disposition represents properties that have MPR (Minimum Property Requirement) repairs which must be addressed post closing. The MPR repairs cannot total more than $11,000 ($10,000 repair limit + 10%

overage allowance), and is the financial responsibility of the purchaser.

HUD will only list Minimum Property Requirements (MPR) items as identified in HUD’s appraisal on the addendum for the repair escrow. Cosmetic repairs or other items to bring the property to average condition will not be included. However, please note, any repairs listed are an estimate. Seller does not guarantee or warrant that the property is free of visible or hidden structural defects, termite damage, lead-based paint, or any other condition that may render the property

uninhabitable or otherwise unusable. A final list of repairs, if applicable, will be determined by the lender and buyer’s appraisal.

The repair escrow is never a credit to the purchaser. The purchaser must finance the repair escrow with the lender writing the FHA loan. The lender holds the money for repairs in an escrow account until they are completed. FHA allows up to 90 days after closing for MPR repairs to be completed, however some lenders may have different MPR repair deadlines. Once the repairs have been completed for the property, the lender will inspect the contractor’s work and disburse the funds to the appropriate parties.

 

7. What are the different financing categories?

(IN) FHA 203(b): Properties listed as Insurable (IN) qualify for FHA 203(b) financing. This disposition represents properties that do not have obvious Minimum Property Requirements (MPR) repairs.

(IE) FHA 203(b) with Repair Escrow: These properties have MPR repairs, which cannot total more than $11,000 ($10,000 repair limit + 10% overage allowance). The repair escrow is never a credit to the purchaser.

  • HUD will only list Minimum Property Requirements (MPR) items as identified in HUD’s appraisal on the addendum for the repair escrow. Cosmetic repairs or other items to bring the property to average condition will not be included. However, please note, any repairs listed are an estimate. Seller does not guarantee or warrant that the property is free of visible or hidden structural defects, termite damage, lead-based paint, or any other condition that may render the property uninhabitable or otherwise unusable. A final list of repairs, if applicable, will be determined by the lender and buyer’s appraisal.

  • The purchaser must finance the repair escrow through the lender writing the FHA loan. The lender holds the money for repairs in an escrow account until the repairs are completed. FHA allows up to 90 days after closing for MPR repairs to be completed, however some lenders may have different MPR repair deadlines. When the repairs have been completed, the lender will inspect the contractor’s work and disburse the funds to the appropriate parties.

  • Please note that the repair escrow ONLY applies to FHA 203(b) financing. The repair escrow does not apply to financing outside of 203(b) or to cash purchases. If the purchaser is using non-FHA financing (e.g. conventional, USDA, VA, etc.) or paying cash, the repair escrow amount is not applicable.

(UK) Uninsurable – 203(k) Eligible: These properties do not qualify for FHA 203(b) financing. However, they may qualify for FHA 203(k) financing. The 203(k) option is a rehabilitation loan for owner-occupants only.

(UI) Uninsurable: These properties do not qualify for FHA 203(b) or 203(k) financing. Typically, these properties have MPR repairs exceeding $10,000 or may not meet the guidelines for FHA financing for other reasons. Non-FHA financing (i.e., conventional financing) and cash purchases are most often used for properties with the disposition of UI. Please note that HUD will NOT perform a lead based paint inspection/stabilization, or do a termite inspection/clearance for properties sold without FHA-insured financing.

 

Please consider watching our On Demand videos listed below. The information in these presentations is vital to have, as a HUD selling agent or bidder.