Columbus HUD Homes

A few weeks ago I attended a seminar for real estate agents specializing in selling Columbus HUD homes. I was told that 9 out of 10 contracts are submitted incorrectly, and that only 5 out of 10 contracts get approved (ratified) by HUD (due to errors).

Can you imagine the risk you take, if you work with an inexperienced agent? You have a 50% chance of losing a bid you already won online, because of clerical or administrative errors (or simple ignorance)! Wow!

Let’s take a closer look of why HUD would not ratify a contract

When you work with the Federal Government you have to follow their rules one hundred percent. If they specify that the original contract needs to be filled in with blue ink, you have to use blue ink. If HUD must receive the documents within 48 hours you better FEDEX them the day your bid got approved. You simply have to dot your i’s and cross your t’s.

Here are some common mistakes realtors make that could cost you your contract:

• They don’t check if they won the bid they submitted, the morning after the deadline. It’s the realtor’s responsibility to check. You won’t get a notification from HUD.
• They don’t have the original contract, earnest money check and all necessary forms ready to mail the morning after the deadline. If you try to put the package together after you won the contract, you will most likely miss the deadline.
• They don’t overnight the originals to HUD within 48 hours. If you don’t overnight your package the day after the midnight deadline, you already missed the 48 hours.

When it comes to HUD homes, it definitely pays to work with an experienced agent. Don’t hire your brother in law or a friend’s friend because they happen to have a real estate license! Work with a professional who deals with HUD contracts every day.

What’s My Track Record with HUD Contracts?
 
Well, MY TRACK RECORD is 100% of contracts accepted on FIRST try! This means all bids we won on Columbus HUD homes were ratified the first time I submitted the full package!

Don’t leave it up to chance! Call me at (614) 975-9650. I know how to get it done right! 

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI 
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

This is also true for bidding on a Columbus HUD home. Sometimes you will get a 2nd chance, even if you missed out on your original bid. Here’s how:

Say your realtor submitted an online offer on one of the Columbus houses listed by NHMSI, and you end up the winning bidder. Until the Contract Package is received, reviewed, and ratified, there is no “Contract Pending” and the property is not “Sold.” Remember, HUD requires original documents to be received within 48 hrs after announcing the winning bidder.

Any late or incomplete Contract Package may be rejected and the back-up bidder gets an opportunity to produce an accurate and complete Contract Package. Or, the property may be placed back on the website for other bidders to make offers. NHMS follows HUD directives regarding the sales of all HUD homes. They try to always act in HUD’s best interests.

Can anybody get this Second Chance?  Yes, as long as your Columbus realtor indicates on the bidding screen that you want to be considered as a “back-up” in the event the highest bidder cannot perform.

When do I know? Back-up bids are only valid for 48 hrs and not binding, meaning that you don’t have to accept the offer, if you are no longer interested in the property, or if you have found something else in the meantime.

How do I find out if I got a 2nd chance? Your Columbus realtor will receive a fax from NHMS if your bid is considered for a back-up. There are usually no phone calls or emails. NHMS will give you 24 hrs to make up your mind and decide if you want to accept or decline the back-up offer.

What happens if I decline the back-up offer? By now 48 hrs have passed, so no other back-up bids are valid any longer, and the property will be re-listed for sale at a later time.

What do I do if I want to accept the back-up offer? Your realtor has to sign the form he/she received from NHMS and fax it back within the 24 hr time period. Then the same rules apply, as always: NHMS has to receive an accurate and complete contract package within 48 hrs.  Your Columbus realtor has to indicate on the paper contract again that you want to be considered as a back-up bidder (line 10 on form HUD-9548). 

Wait 3-10 days for a ratified (accepted and signed) contract from HUD and pat yourself on the back. Congratulations, you are the winner now!

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI 
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650