GET
ANSWERS TO YOUR QUESTIONS
Michaelson,
Connor, and Boul, Inc. (MCB) has endeavored to anticipate
your questions and have provided the answers. Please click
on the question to get the appropriate answers. For any questions
not listed here, please call or email our Customer service.
The email address is customerservice@mcbreo.com and we
will respond to you
What is a HUD HOME?
Who can sell HUD Homes?
How do I register to sell HUD HOMES?
What Forms do I need for obtaining the NAID
NUMBER?
Who can buy a HUD Home?
How can I find a HUD HOME?
What is Owner Occupant Period?
When can an Investor submit a Bid?
How can I submit a Bid.
When can I submit a Bid.
How do I get access to show the property?
When can I get a Home Inspection Done?
How are the Bids reviewed and accepted
Can I submit more than one bid for
different properties?
How can I cancel my Bid?
How can I get financing to buy a HUD
HOME?
What is FHA FINANCING?
Does HUD help with the Closing Cost
and Selling Agents Commission?
What is Bid Results and Bid Statistic.
What are some of the guidelines for a buyer purchasing a home under HUD's New Nationwide Disaster Evacuee Lottery?
What is a HUD HOME?
When someone
with an FHA Insured mortgage defaults on the loan, the lender
forecloses on the home; FHA pays the lender what is owed;
and then HUD takes ownership of the home. HUD
turns over the property to Michaelson, Connor and Boul Inc.
(MCB) a Marketing and Management contractor for HUD. MCB
maintains and sells these properties in accordance with HUD
guideline
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Who can sell HUD Homes?
Any licensed
real-estate agent or broker who is registered with HUD may
show and submit bids on HUD Homes.
Please be sure to register with HUD prior to working
with a prospective Buyer.
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How do I register to sell HUD HOMES?
You will need
to register with HUD through MCB and obtain a NAID Number
before you can submit a Bid on behalf of your Client.
HUD/MCB will verify that
the Licensee is Active and not under any suspension by the
Real Estate Commission and is not disbarred by HUD
Please click
on the Link below and the web page will allow you to enter
your information and create the required forms SAMS 1111,
SAMS 1111A and W9 for the Designated Broker's signature
Registration
For those agents who
already have their NAID number, please click on the link below
to check and make changes to update your information.
http://nyny.towerauction.net/mcb/brokerreglog.htm
If
you have changed your address or contact information, please
use the link above to update your record so that we have your
latest information.
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What Forms do I need for obtaining the NAID
NUMBER?
First page
of a telephone bill, utility bill or bank/trust account statement
reflecting the business address
Designated Broker’s Real
Estate License showing status as Active Pocket
Card/Continuing Education Card is required for Ohio
Designated
Broker’s social security card and IRS Form W-9 in lieu thereof
Overnight
your completed application to:
Attention: NAID
Coordinator
Michaelson Connor
and Boul
5312
Bolsa Avenue Suite 200
Huntington
Beach CA
92649
For
further assistance
Please call (714) 230-3600
or E-Mail naid@mcbreo.com
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Who can buy a HUD Home?
Any individual
who can qualify for a mortgage or who can pay cash may purchase
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.
Purchasers must use a
broker or agent who is registered with HUD to place a bid
on a property.
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How can I find a HUD HOME?
HUD homes are
listed on the local MLS and on our web site www.mcbreo.com.
Registered brokers and agents may place bids electronically
on these properties on behalf of a purchaser.
The bid with
the highest Net to HUD that meets acceptability criteria is
selected as the provisional winner subject to timely receipt
of all required documents and our verification process.
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What
is Owner Occupant Period?
Priority is given to Purchasers who are owner-occupants
for the first ten (10) calendar days after a new listing is
posted. All bids are opened on the 11th day for all owner/occupant
bids; these are considered as though they were received simultaneously.
If there are no acceptable owner-occupant
bids on day 11, then bids are opened daily from all purchasers,
with no priority given to owner/occupants.
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When can an Investor
submit a Bid?
After Day 10,
if a property remains unsold.
Bids are opened
the following business day for review and acceptance and results
are posted on the web site. Bids placed on the weekend or
Holidays are opened the following business day.
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How can I submit
a Bid ?
Bids can be
submitted through the Internet by visiting our Web Site www.mcbreo.com
and using the Search module to find the property you want.
Once you have
located the property and clicked on the “Submit Bid”, it will
“walk” you through the process.
We cannot accept
any bids by Fax.
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When can I submit
a Bid?
Bids should
be submitted after the Bids results for your State are posted
BID
SUBMISSION TIMINGS
Bids
should be submitted after 4:00 pm Eastern Time
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How do I get access
to show the property?
Contact
our Listing Broker in your City by clicking on your state
on the right-hand menu
Contact
our local Field Office located in your State by clicking
here
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When can I get a
Home Inspection Done?
Prior
to submitting a Bid
•
Do a visual inspection and make sure that the property meets
your requirement.
After
Contract Acceptance
•
We recommend that you retain the services of a Licensed Home
Inspection Company to perform an inspection on the property
- If the inspection shows defects not disclosed by us, you
can send us the copy of the inspection report and have the
sale cancelled.
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How are the Bids reviewed
and accepted?
Bids are reviewed
for acceptability on the following business day after the
deadline of Bid submission.
Please do not
submit bids until after all bid winners are posted for that
day.
All Bids are
accepted based on HUD’s guidelines which are followed strictly.
Please remember
that we do not archive any Bids. Bids are opened
for review and either they are accepted or rejected and discarded.
If
the property shows that it is still available after the results
are posted, please submit your Bid, again and again everyday,
till either we have lowered the price to meet your bid, or
that by the Bidder increasing
the price in each subsequent bid, has met our acceptable amount.
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Can I submit
more than one bid for different properties?
If an Owner
Occupant submits multiple bids for different properties MCB
will select and award the bid that has the highest acceptable
Net to HUD for that property. Please do not submit bids for
properties that may not meet your requirement as we will award
the bid based on our preference.
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How can I cancel
my Bid?
If you are
awarded a property either by Lottery or the General List,
and you cannot complete the transaction - Please send a letter,
Fax or E-mail requesting cancellation or you may cancel by
using our Online Bid Cancellation Process
http://bally.towerauction.net/mcb_bidcancellation.htm
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How can I get
financing to buy a HUD HOME?
The
Buyer may:
–
Pay cash
–
Obtain FHA financing from a HUD approved lender
–
Secure conventional financing.
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What is FHA FINANCING?
There are three
main types of FHA Financing
•
203(b) Regular FHA Loan - Listed as “IN”
•
If the Property does not have any mandatory repairs FHA will
insure the Loan hence the classification of “IN”
•
203(b) - Repair Escrow - Listed as “IE”
•
When a property has less than $5000 in repairs to bring it
up to Minimum Property Standards, FHA will insure the loan
provided the repairs are completed by the Buyer or the Buyer’s
agent within 90 days from the date of Closing.
•
It is a cost to the Buyer that the Buyer can finance and add
the amount to the mortgage.
•
The Lender monitors and keeps the funds in an escrow account
for disbursement on completion of repairs to the Lender’s
satisfaction.
•
•
203(k) - Rehab Loan - Listed as “IK”
•
When the property has more than $5000 in Minimum Property
Standards repairs to be done
•
The Lender must obtain an Inspection report from an approved
203(k) consultant and a new appraisal
Contact
any mortgage company familiar with FHA Guidelines for the
various programs
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Does
HUD help with the Closing Cost and Selling Agents Commission?
•
HUD allows up to 3% as closing costs. Only the costs
that are listed in the Forfeiture
and Extension Policy (Addendum A) Version 10/05/06
are allowed.
•
HUD allows up to 5% Real Estate Commission
•
Remember higher Closing Cost and Commission will reduce your
Net to HUD and may affect your competitive Bidding ratio
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How will
I be notified if my Bid is accepted?
•
The Results from the review of all Accepted Bids are posted
on our Web Site
•
It is the responsibility of the Agent to check our web site
for the accepted Bid information and ensure that all the required
forms are properly filled out and sent to us by overnight
mail.
•
As a courtesy we also endeavor to notify the Agent by Email
and Fax using the information entered during the Bid Submission
•
Please note that incomplete or misinformation will cause your
notification to go astray
•
If your name is posted on our web site under Bid Results as
the winning bidder, please send the contract and other required
documents to us immediately.
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What are Bid Results and Bid Statistics.
BID RESULTS
Whenever we
accept a bid, the results are posted on our web site under
Bid Results the same day.
BID RESULTS POSTING TIMINGS
Eastern Time
Normal Bid
Result posting:
4:00 pm
BID STATISTICS
Bid Statistics
are a snapshot of all the bids submitted for a particular
property irrespective of the fact if the bid was accepted
or not.
Bid Statistics
are updated every Friday for all bids submitted the previous
week and will continue to display for 60 days.
What are some of the guidelines for a buyer purchasing a home under HUD's New Nationwide Disaster Evacuee Lottery?
The Buyer must purchase utilizing FHA-insured financing or an all-cash sale. Buyers may utilize Sections 203(h) for Disaster Evacuees or 203(k) including a streamline 203(k) in order to purchase the property during the lottery period.
Discounts are only available for purchases during the special lottery. Competitive sales with discounts for Disaster Evacuees will not be allowed.
The purchaser must utilize the services of a real estate broker. HUD will pay the sales commission up to 5% in connection with the purchase. A buyer may not collect a broker commission.
HUD will pay all the Buyer’s reasonable and customary closing costs up to 5% in connection with the sale of the property. '
Earnest money is $500 for Disaster Evacuee sales.
Buyers will be required to occupy the property for one year from the purchase date.
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