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HOW TO BUY A HUD HOME
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All properties are sold "as is". This
includes the responsibility of the buy to de-winterize the property.
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HUD will pay up to 5% of buyer's closing
costs.
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All bids must be submitted electronically by
a HUD Certified Real Estate Broker or agent. You must be
pre-approved for a mortgage or have cash before HUD permits you to bid
on a property.
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HUD Sales contract must be
used for all bids, provided by your real estate agent.
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Earnest money deposit required is as
follows:
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Sales price up to
$49,999 - earnest money deposit = $500
Sales price $50,000 and up - earnest money deposit =
$1,000
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Brokers should advise purchasers that there
may be code and/or zoning violations on these properties and that it is the
responsibility of the purchaser to identify and satisfy these violations.
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Buyers are encouraged to have homes
inspected by a qualified home inspection company to satisfy themselves as to
the condition of the property at time of sale. No repairs will be made by
HUD after closing.
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| ELECTRONIC BIDDING |
Bids MUST be submitted electronically either
by telephone or through the internet.
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| REQUIRED DOCUMENTATION FOR ACCEPTED SALES
CONTRACTS |
Only your real estate agent can submit these
documents. Documents must consist of the following:
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1. Typed Sales Contract - HUD
form 9548 dated 1/99
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2. Owner Occupant Certification
- HUD form 9548D must be submitted (when
applicable), otherwise contract will be rejected.
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3. Copy of earnest money check - In
the form of a cashier’s check, certified check or money order, with no
termination date or cancellation provision must accompany the original bid
documents.
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4. Forfeiture and Extension Policy
– Addendum A.
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5. Lead Based Paint Addendum to Sales
Contract must accompany the bid if the home was built prior to 1978.
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| 6. Letter of commitment or
pre-qualification letter - From an industry recognized bank or mortgage
underwriter, or for cash sales, provide verification of funds. |
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