About HUD Forclosures . . . HOW TO
|
| |
|
| |
| U.S Housing and Department of Urban Development |
| |
| Search HUD Homes For Sale > click here |
 |
| |
| HUD Louisiana Bid Results > click here |
| |
|
|
| |
| Disclosures |
| 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:
There will be no guaranties and/or warranties made. No repairs will be performed on the property by HUD after closing. Purchasers are encouraged to have the properties inspected by a qualified home inspection service company to ensure that they are fully aware of 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 3% of the purchase price, IF inserted on line 5 of the sales contract. |
| |
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 3% of the purchase price, IF inserted on line 5 of the sales contract. |
| |
|
|
| |
| Listing Codes: |
| |
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. |
| |
| Listing And Bidding |
| |
| New listings are available every week, |
| During the Initial listing period, bids may besubmitted by all potential purchasers (Owner Occupants and Investors). Priority will be given to Owner-Occupant purchasers for the first 10 calendar days. |
| |
| Owner Occpant Priority Period |
| |
| All Owner-Occupant offers received during the first 10 days shall be considered to have been received simultaneously. In order to be valid for the 10 day priority period, bids must be completed and confirmed online no later than 11:59 p.m. on Sundays. |
| |
| On Mondays, Owner-Occupant bids received through Sunday 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, properties will remain on the market for all bidders. Bids will be reviewed and posted daily by 1:00 p.m. |
| |
| At each such daily bid opening, the highest bid will be accepted. |
| |
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) will be accepted beginning on the 11th day. |
| |
| 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 by 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 thenext day excluding Friday, Saturday and Sunday which will be opened on Monday. Bids must be completed and confirmed on the Internet before 11:59 p.m. in order to be valid for that day. |
| |
| HUD Approved Brokers will continue to show properties and prepare contracts. |
| |
| Brokers must submit bids through Internet Electronic Bidding on Cityside’s web site at www.citysidecorp.com |
| |
| 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 HUD Sales Contract Form 9548. |
| |
| 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. |
| |
| Required Contract Documents |
| |
| The sales contract and all forms/addendums relative to the sale of a HUD home MUST be signed/initialed/dated by the HUD designated broker in the office - No exceptions. |
| |
| Required forms: Lead Based Paint Addendum, Certification of Owner-Occupant, Sales Contract Form 9548, Radon Gas & Mold (9548-E) 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 |
| |
| Electronic Bid Withdrawl |
| |
| You may withdraw an electronic bid by sending us a fax, no later than 10:00 a.m. on bid opening day.
|
| |
| 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. |
| |
| Earnest Money Deposits |
| |
| Louisiana Required Earnest Money: The following earnest money amount should be sent directly to the closing agent, made payable to HUD, with a copy to Cityside in closing package in the form of a cashier's checks, money orders, certified or official checks. |
| |
| $50,000 or less - $500.00 |
| $50,000 or more - $1,000.00 |
| |
| Earnest Money Forfeitor and/or Return |
| |
| 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 Occupied 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 Cityside Corporation, 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. |
| |
| Closing Cost |
| |
| HUD pays certain Closing Costs up to 3% of the purchase price, IF inserted on line 5 of the sales contract. |
| |
| Closing Cost Time Frame |
| |
| For Louisiana, all purchasers must close on or before forty-five (45) days of contract acceptance date. |
| |
| Closing Extension Policy |
| |
| 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. You may download the Closing Extension Form from the Forms Page of this website.
Cityside Corporation, 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 Cityside Corporation, as HUD's Representative, to grant future extensions. |
| |
| Broker Registration |
| |
| Broker Registration and NAID Number: You must be a HUD Approved Broker and have a valid NAID Number (previously supplied by HUD) before performing Electronic Bidding. |
| |
| If the Selling Broker is not a HUD Approved Broker and wants to submit an electronic bid, you will need to complete Forms SAMS 1111 and SAMS 1111-A and return them to Cityside Corporation before an electronic bid can be made. |
| |
| information source: City Side Management Corporation Real Estate Service |
| |
| HUD approved Broker - MAIN OFFICE® real estate professionals have helped many people, just like yourself, find and pruchase HUD forclosures and obtain affordable financing. When you're ready. |
| |
|
| |
Shreveport Real Estate
buy
Realtors >
