Apr
19
2009
Here is an overview of the Nevada HUD Home bid process and resources:
- HUD properties can be found in the MLS or http://www.mcbreo.com/st_nvmain.htm . We are also posting a current list in PDF format on www.americanagroup.com. The new list is published every Friday.
- Buyers must use a licensed real estate agent to submit HUD bids.
- Real estate brokers must be registered with HUD and be issued an NAID number in order to submit valid bids. You can check to see if your NAID # is current or your broker can register at MCBREO.com.
- All HUD homes are on a Master key not on lockbox. Las Vegas Real estate agents can purchase a HUD key for $3 with a valid NAID # and your business card at any Prudential Americana office.
- All bids are submitted electronically directly on the MCBREO website and are considered simultaneous bids. You must have the complete contract and all disclosures completed and signed by the buyer prior to submitting the bid.
- When properties first come on the list, there is a 10 day period reserved for owner occupant offers only. Properties will open up to investors on the 11th day if there has not been an acceptable offer to HUD. Daily bids are open to all bidders/purchasers.
- All the necessary Forms and Addenda are located at MCBREO.
- Also, get the Broker Handbook: A Guide to Selling HUD Homes for step-by-step instructions on the entire process and how to complete the forms.
- Make sure you review the Bid Results and Statistics area of the website for useful information to assist you with educating the buyer.
- Remember the highest net to HUD is the winning bid - basically the offer price less any requested closing costs and commission (HUD will pay a commission up to 5% of sales price).
- Check out the comprehensive HUD.gov site for extensive and useful information.
If you are an interested buyer, just give me a call (702-858-9191 or jan@janobrien.com) and I will be happy to refer you to an experienced real estate agent who can assist you.
Apr
19
2009
Buying a HUD home in Nevada is definitely another investment and primary residence alternative. The active property list as of 4-10-09 had 59 available properties including manufactured homes, condos and single family residences. There have been few HUD homes available in recent years due to the high percentage of conventional loans. With the trend in financing switching back to FHA loans (31% of all Las Vegas closings in March 2009 were FHA), expect to see the number of HUD homes available to increase. Real Estate agents can earn a commission up to 5% of the offer price.
What is a HUD Home?
When a homeowner with a Federal Housing Administration (FHA) insured mortgage can’t meet the payments, the lender forecloses on the home; FHA pays the lender what is owed; and then the United States Department of Housing and Urban Development (HUD) takes ownership of the home. Then HUD sells it at market value as quickly as possible. Michaelson, Connor & Boul, Inc. (MCB) is a Marketing and Management contractor for HUD (1 to 4 unit residential properties). MCB contracts with listing brokers around the country to assist in the marketing and listing of these properties through the local Multiple Listing Services.
Prudential Americana Group, Realtors is a Local Listing Broker for HUD homes with HUD Registered Real Estate Agents. Our sales executives are trained and experienced with the nuances and requirements for submitting offers to purchase to HUD.
Access to the Property
Perspective purchasers MUST be accompanied by a broker or agent 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. Keys are not permitted to be lent to any other individuals associated with any sales transactions.
Who can Purchase a HUD Home?
Any individual who can qualify for a mortgage or who can pay cash may purchase a HUD home. Purchasers must use a broker or agent who is registered with HUD to place a bid on a property. Purchasers must also have a pre-qualification letter from a lender or proof of cash funds in the amount of or greater than the property they are purchasing.
How are HUD Homes Sold?
All HUD Homes are listed on our website at their “AS-IS” fair market value. Purchasers must obtain the services of a HUD Registered Real Estate Agent. 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 with 48 hours.
How is Fair Market Value determined?
Fair Market Value is determined by a licensed FHA appraiser. Copies of the FHA appraisal are available to the lender by request after a property is under contract. If a property is exposed to the market without any acceptable offers then a reduction of the listed price may occur.
Does HUD make any repairs to the property?
No. All HUD properties are sold in their “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 are very strongly encouraged to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the property at the time of sale.
Apr
11
2009
Prudential launched a new TV spot at the end of March. In the 30-second commercial, a couple is deciding on with whom to list their home. After learning the advantages of listing with a Prudential Real Estate sales professionals, there is only one choice. The commercial highlights our J.D. Power and Associates recognition, as well as our differentiating Online Seller AdvantageSM technology. The ad will run on major cable channels through June.
