Any individual, partnerhip or company that can qualify for a mortgage or who can pay cash may purchase a
HUD home. In order to place a bid on a HUD home buyers must use an agent registered with HUD. Buyers must also
have a pre-qualification letter from a lender, on lenders stationary, or proof of sufficient cash funds in the amount
of or greater than the property they are purchasing.
All
HUD Homes are listed on the MCB Web site and on th Mujltiple listing Service at their "AS-IS" fair market value. Buyers
(with the exception of special program purchasers*) must obtain the services of a HUD Registered Real Estate Agent. Registered
Agents may submit bids on HUD properties on behalf of their buyers. The bid that meets the acceptable threshold and has
the highest net to HUD receives a provisional bid acceptance subject to receipt of all required documents. Once a bid
is accepted an original Sales Contract Package must be submitted to MCB within 48 hours.
the Fair Market Value is determined, "as is" by a licensed FHA appraiser. Copies of the FHA appraisal are
available for the lender by request after a property is under contract. If a property does not receive any any acceptable
offers then the price of the property may be reduced.
No. HUD properties are sold in "AS-IS"
condition. There are no representations or warranties, expressed or implied, on any HUD property. HUD does not guarantee
the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. Purchasers
are advised that there may be code and/or zoning violations on these properties and that it is the responsibility of the purchaser
to identify these violations. Buyers should, and it is highly recommended that they have homes inspected by a qualified home
inspection company to satisfy themselves as to the condition of the property at the time of sale.
Owner
Occupant and Investor purchasers MUST be accompanied by a broker when viewing any HUD home listed for sale. Buyers may not
enter a house without their broker/agent for any reason prior to closing. Brokers and/or agents must accompany any individual
performing services such as home inspections, appraisals, or certifications. Brokers and agents may only use their keys for
their own legitimate use. Keys may not be lent to any other individuals associated with any sales transactions.
No work may be done to ANY HUD property prior to the closing on the home. An accepted bid does
not mean ownership has been transfered . Purchasers do not own the home until after closing and the property is recorded in
their name. Purchasers may not use the home for storage of personal items or occupy the premises under any circumstances.
Occupying or working on a HUD home prior to the close will be treated as trespassing. Failure to
abide by this policy can result in the cancellation of the sale transaction, forfeiture of the earnest money deposit and may
also involve suspension of bidding privileges for the selling agent and brokerage firm.
How Are Bids Made?
Your broker will prepare a contract and then submit your bid On-Line. If your
bid is accepted the broker will then have 48 hours to deliver your contract to MCB.
What About Earnest Money?
Earnest money is the "good faith" money that accompanies a contract or bid. HUD
recquires earnest money in the amount of $500 for homes under $50,000 and $1,000 for homes over $50,000 in value.
