Cherokee Realtor®

What is a HUD Home?
Who can sell HUD homes?
How do I register to sell HUD homes?
What is a NAID number?
What is a Listing Broker?
Who can buy a HUD home?
How can I buy a HUD home?
How can I find a HUD home?
What is Owner Occupant Period?
When can an Investor submit a Bid?
Where can I get a Sales Contract package and where do I send it to?
How do I get access to show the property?
Can I submit more than one bid for different properties?
How can I cancel my Bid?
What is FHA financing?
How is the repair escrow amount determined?
How do I determine the mortgage amount when there is a repair escrow?
Will HUD pay for any closing costs and selling agent’s commission?
What is Bid Results?
What is Bid Statistics?
Why do I have to get a Pre-Qualification Letter before I bid?
Who is HUD’s Closing Agent?
How long do I have to close? What if I need more time?
What is Officer/Teacher Next Door?
What is Firefighter – Emergency Medical Technician Next Door?
Does HUD have special programs for Non-Profits and Local Government Agencies?
Is there anything else I should know about HUD Homes?
On what holidays do you close your office?
If an agent or broker would like to make a bid as an owner occupant or investor, can they still charge commission to HUD?
If an investor or any buyer gets a property awarded but lender does not accept HUD’s appraisal, and their own value comes in lower in another appraisal, can HUD adjust price?
If an investor cancels escrow due to property financing because of value not being there, does he lose his deposit?
What about if property was purchased under Owner Occupancy, will the same rules apply?
If someone does not have a social security number is there any way for them to bid?
If someone has a social security number, but no legal residency can they buy?
Does HUD accept special powers of attorney?
How long does it take to get registered with HUD to buy and sell HUD homes?
The buyer on this property is a cash paying investor, and they were prepared to close a long time ago. Tuesday we were notified that they are expiring in 10 days.  Are extensions available to investors?
What if there is a lien on a property?  Who pays for it?
Can buyer’s names be changed once a bid has been entered?
Is there a “buyer’s remorse period?”

What is a HUD Home?
When someone with a HUD insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home. HUD then sells the home at market value through a Marketing & Management Contractor such as PEMCO.

Who can sell HUD homes?
Any licensed real estate agent or broker who is registered with HUD may sell HUD Homes.

How do I register to sell HUD homes?
The Principal Broker (designated broker) for your company or office must register by completing SAMS (Single-Family Acquired Asset Management System) forms 1111 and 1111A, and attachments. All forms must be signed by the designated broker. Registration must be renewed annually using the same forms to maintain current status. Forms can be downloaded from this site and must be sent to PEMCO. PEMCO will check the forms and attachments for completeness and accuracy and forward them to HUD who processes them and issues the NAID number. Please allow 6 to 8 weeks for processing.

What is a NAID number?
A NAID number is a Name Address Identification Number issued by HUD. This number allows the agents and brokers to submit bids on behalf of prospective buyers of HUD homes.

What is a Listing Broker?
The M&M Contractor has engaged Listing Brokers to list the properties in the local Listing Services (MLS). They are paid a fee by the M&M Contractor. The Listing Broker provides assistance to realtors with access to the property and with sales information.

To view a list of Listing Brokers for your area , please click on one of the following links.
Georgia LLBs
Northern California LLBs
Southern California LLBs
Hawaii LLBs
Guam/Marianas LLBs

Who can buy a HUD home?
Anyone who can qualify for a mortgage or who can pay cash may buy a HUD home. Owner occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home as an Owner Occupant for two years. Buyers must use a broker or agent who is registered with HUD to place a bid on a property.

How can I buy a HUD home?
Start by finding a participating real estate agent. Your real estate agent must submit your bid for you. Normally, HUD Homes are sold in an “Offer Period.” At the end of the Offer Period, all offers are opened and considered to be received simultaneously, and, basically, the highest acceptable net bid is accepted. If the home isn’t sold in the initial Offer Period, you can submit a bid until the home is sold. Bids can be submitted any day of the week, including weekends and holidays. They will be opened the next business day. The results from the review of all accepted bids are posted on our website. It is the responsibility of the real estate agent to check our website for accepted bid information and ensure that all the required forms are properly filled out and sent to us within two business days of acceptance.

How can I find a HUD home?
HUD homes are listed on our website and in the local MLS.

What is Owner Occupant Period?
When a HUD property is first listed for sale to the general public, bids can be submitted by all potential purchasers, however, it is available to Owner Occupant Purchasers “only” during the initial priority period as specified below. All bids placed by Owner Occupants that are submitted during this priority period are considered to have been received as though they were received simultaneously. If there are no acceptable owner-occupant bids on the last day of the priority period, then bidding becomes available to all purchasers on a daily basis, with no priority given to owner/occupant bids.

GEORGIA – 12-day Owner Occupant Priority Period

During the first 12 days a HUD property is listed to the general public, it is available to Owner Occupant Purchasers only. All bids placed by owner occupants that are submitted from day 1 through day 12 are opened on the 13th day and are considered as though they were received simultaneously. If there are no acceptable owner-occupant bids on the 13th day, then bidding becomes available to all purchasers on a daily basis, with no priority given to owner/occupant bids.

New listings for the owner occupant priority period take place on Wednesday of each week with the first bid download scheduled 13 days later; (the 2nd Monday morning following the Wednesday listing.). Investors are allowed to submit their bids during the 12 day owner occupant priority period; but investor bids will not be considered if there is an acceptable owner occupant bid. If there are no acceptable owner occupant bids, investor bids will be considered and may be awarded on the 13th day; (the 2nd Monday morning following the Wednesday listing.).

CALIFORNIA, HAWAII, GUAM, MARIANAS – 10-day Owner Occupant Priority Period

During the first 10 days a HUD property is listed to the general public, it is available to Owner Occupant Purchasers only. All bids placed by owner occupants that are submitted from Day 1 through Day 10 are opened on the 11th day and are considered as though they were received simultaneously. If there are no acceptable owner-occupant bids on the 11th day, then bidding becomes available to all purchasers on a daily basis, with no priority given to owner/occupant bids.

New listings for the owner occupant priority period take place on Friday of each week with the first bid download scheduled 11 days later; (the 2nd Monday morning following the Friday listing.). Investors are allowed to submit their bids during the 10 day owner occupant priority period; but investor bids will not be considered if there is an acceptable owner occupant bid. If there are no acceptable owner occupant bids, investor bids will be considered and may be awarded on the 11th day; (the 2nd Monday morning following the Friday listing.).

When can an Investor submit a Bid?
When a HUD property is first listed for sale to the general public, bids can be submitted by all potential purchasers (including investors), however, it is available to Owner Occupant Purchasers “only” during the initial priority period as specified above. All bids placed by Owner Occupants that are submitted during this priority period are considered to have been received as though they were received simultaneously. If there are no acceptable owner-occupant bids on the last day of the priority period, then bidding becomes available to all purchasers on a daily basis, with no priority given to owner/occupant bids.