Agent/Broker FAQs | Goree And Thompson

Bidder user: If, after clicking Forgot Password on the login screen, you do not receive the YardiOne email with instructions on how to reset your password, please make sure the email address you entered on the YardiOne screen belongs to your active broker or agent user in the NAID Portal. If you don't have NAID Portal access, please contact your broker or office manager.

Public user: If, after clicking Forgot Password on the login screen, you do not receive the YardiOne email with instructions on how to reset your password, please make sure the email address you entered on the YardiOne screen is the same email address you used to register as a public user on HUD Homestore.

If you're still unable to receive any of the expected YardiOne emails, please check your spam folder.

For other technical issues involving HUDHomestore.gov please contact the FHA Resource Center at (800) CALL-FHA (225-5342). Please provide the error message you are getting and/or a description of the issue you are encountering.

HUD has identified five buyer types that are eligible to purchase HUD-owned homes. Certain conditions must be met to determine the eligibility of a buyer to bid on a particular home. Only HUD-registered bidders can make offers on properties. Homebuyers must use a HUD-registered Selling Broker or Selling Agent to make an offer on their behalf.

Owner-Occupant: Eligible owner-occupants are individuals who have not purchased a HUD property as an owner-occupant within the past two (2) years. They can bid on homes in the Exclusive or Extended periods.

Investor: Eligible investors can bid on homes only in the Extended period.

Good Neighbor Next Door (GNND): Eligible GNND buyers can find details on the program on the following Web page - https://www.hud.gov/program_offices/housing/sfh/reo/goodn/gnndabot. GNND buyers can bid on single-unit homes in a Revitalization Area during the Lottery phase. During the Lottery phase, GNND buyers (1) get a 50% discount off the HUD appraised value, and (2) are given preference over Government Agencies and Nonprofits in the selection of a bid-winner. After the Lottery phase, GNND buyers are not eligible for the 50% discount.

For example, if HUD lists a home at $100,000 and the home is in the Lottery phase, a GNND buyer can buy it for $50,000 provided they occupy the home as their personal residence for the required 36-month occupancy period. If they qualify for any FHA-insured mortgage program, their down payment is only $100 and they may finance closing costs.

Nonprofit: Nonprofit organizations need a valid HUD NAID, and they must be registered on HUD Homestore. They use that NAID to place the bid themselves (without using a Selling Broker). Nonprofits can bid on homes in Lottery, Exclusive, and Extended phases provided the homes are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Nonprofits cannot bid for Dollar homes. There is no "Selling Broker" commission for bids placed using a Nonprofit NAID, since the Nonprofit is placing the bid themselves.

See https://www.hud.gov/program_offices/housing/sfh/np for more information.

Government Agency: Government Agencies need a valid HUD NAID, and they must be registered on HUD Homestore. They use that NAID to place the bid themselves (without using a Selling Broker). Government Agencies can bid on homes in Lottery, Exclusive, and Extended phases provided they are in approved purchase areas. If the property is in the Lottery phase, the home must be uninsured. Government Agencies are the only bidders who can bid for Dollar homes. There is no "Selling Broker" commission for bids placed using a Government Agency NAID, since the Government Agency is placing the bid themselves.

See https://www.hud.gov/program_offices/housing/sfh/reo/goodn/dhmabout for more information about Dollar homes.

To search for all the HUD properties in a state, click a state on the U.S. map (in the HUD Homes screen) or use the Search Properties area and select a state before clicking the Search button.

You can type in part of a street address, or part of any of the other text fields. You can also search by price range, number of bedrooms or bathrooms, buyer type, or property status. The system will select all properties that contain the letters or numbers that you typed in.

TIP: Less is more. The less you type in, the more homes will display as a result.

On the home page, you can click a link for Good Neighbor Next Door, Nonprofits, or $1 Homes - Government Sales. When you click the Good Neighbor Next Door link, you'll display the Neighbor Next Door screen. If you then click one of the dark blue states, you'll display only those homes that are available for Good Neighbor Next Door (there are usually just a few GNND homes in each state).

The map on the $1 Homes - Government Sales screen will do the same: it will only display those few homes available for a $1 government purchase. In contrast, when you click a state on the Nonprofits screen, you will see a great many homes since a HUD-approved nonprofit is eligible to purchase a HUD home in all price ranges and in most listing periods.

If you don't use the map, but want to use Search Properties, you can look for homes available only for owner-occupants, investors, GNND, nonprofits, or government agencies by selecting an appropriate Buyer Type before clicking the Search button. Otherwise all the homes that are available in the state will be displayed. Note that the Buyer Type drop-down does not let you search for $1 homes.

Properties can be in one of four listing periods, depending on the type of property, the Bid Open Date, and how long the home has been on the market. These listing periods are:

Lottery (7 days): All uninsured homes start in the Lottery period. The only insured homes that start in the Lottery period are insured single-unit properties in a revitalization area. The next listing period is the Exclusive period.

Exclusive (no bidding for investors)

(a) Insured properties (30 days): Insured properties not in a revitalization area begin their listing periods here. For insured homes that are single-unit properties in a revitalization area, the Exclusive period follows the Lottery period. The next listing period is the Extended period.

(b) Uninsured properties (5 days): All uninsured properties enter this 5-day Exclusive period after the Lottery period. The next listing period is the Extended period.

Extended (up to 180 days or open-ended): If the home has an as-is appraisal value of $1 to $25,000, it goes into a 10-day Dollar listing period (see below) after being on the market for 180 days. After the 10 days, it returns to an open-ended Extended listing period. Those homes whose value is zero dollars or greater than $25,000 dollars remain in what becomes an open-ended Extended listing period.

Dollar (10 days - Government purchase only): This listing period is ten (10) days and is for homes that have an as-is appraisal value of $1 to $25,000. After the $1 listing period, the home enters an Extended listing period that has no ending date (except when the home is purchased or reanalyzed). Government agencies can still purchase the home for $1 after that home leaves the $1 listing period and enters the Extended listing period.

Good Neighbor Next Door: Law enforcement officers, pre-kindergarten through 12th grade teachers, firefighters, and emergency medical technicians (EMTs) can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a 50% discount from the list price of the home during the Lottery phase. In return, the purchaser must commit to live in the property for 36 months as their sole residence.

See https://www.hud.gov/program_offices/housing/sfh/reo/goodn/gnndabot for more information about this program and its requirements.

$1 Homes (Government purchase only) : HUD's Dollar Homes initiative helps local governments to address specific community needs by allowing those government agencies to purchase homes for one dollar. These are homes that have been on the market for over 180 days and that have an as-is appraisal value of $1 to $25,000. The government agency can then fix up the home and offer low- to moderate-income families the opportunity to purchase qualified HUD-owned homes for a substantially reduced price.

For more information, click the following link: https://www.hud.gov/program_offices/housing/sfh/reo/goodn/dhmabout

Nonprofit: The Federal Housing Administration (FHA) offers community and faith-based nonprofit organizations the opportunity to purchase HUD homes at discounts up to 30%. With this discount, local nonprofit organizations invest in their communities through property rehabilitation and resell to first-time homebuyers and low- to moderate-income families. See https://www.hud.gov/program_offices/housing/sfh/np for more information.

The Principal Broker (designated broker) for your company or office must register by completing SAMS (Single-Family Acquired Asset Management System) forms 1111 and 1111A, and attachments. All forms must be signed by the designated broker. Registration must be renewed annually using the same forms to maintain current status. You can register and obtain your NAID number by visiting www.hudhomestore.com. It takes approximately 6 to 8 weeks for processing.

Effective March 8, 2013, HUD will be implementing a “Buyer Select” closing agent pilot program. This announcement comes as a change to the program dated February 25, 2013. In this new program, HUD will no longer automatically pay the escrow fee, even if Cimarron is chosen. All buyers whose contracts are executed on or after March 8, 2013, will have to choose their own escrow company at the buyer’s expense. The selling agent will be required to complete an addendum providing the name and contact information of the selected escrow company. This addendum must be submitted with the contract package at the time of bid acceptance. Please note, escrow fees will now be a buyer expense. HUD will only pay a portion of the closing fees, if the buyer includes closing costs on line 5 at the time of bid submission and there are sufficient funds remaining to allow for this fee to be paid. If there are no closing costs included in the bid, the buyer will be required to pay all escrow and closing fees. This is a change from previous notices that will be effective with this pilot program.

Earnest Money is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious about wanting to complete the purchase. If the seller accepts the offer, the earnest money is held in escrow by the real estate broker or by a settlement or title company until closing and is then applied to the buyer’s portion of the remaining costs. If the offer is rejected, the earnest money is usually returned, since no binding contract has been entered into. If the buyer retracts the offer or does not fulfill its obligations under the contract, the earnest money is forfeited.

All purchasers are strongly encouraged to perform a walk through inspection at or near the date of your contract acceptance and, again, immediately PRIOR to closing. If a purchaser discovers a property condition that did not exist at the time of sale they must immediately notify HUD’s property manager of the damage. The purchaser or agent should complete the Property Damage Report and fax it to the appropriate fax number listed on the form. Reporting the damage does not guarantee the correction of the problem that has been discovered. The lack of written documentation describing property condition at contract acceptance, however, will preclude consideration for repairs or price adjustments in the event of subsequent damage. Each case will be looked at independently and a determination will be made as to whether the damage will be repaired (or not repaired) or, under some circumstances, credits given at closing. The buyer assumes full responsibility for the property and its condition on the date of closing. HUD assumes no responsibility and will make no settlement for damages reported to HUD after the close of escrow.

There are three listing periods: the Lottery Period, the Exclusive Listing Period, and the Extended Listing Period. Certain properties are featured in the Lottery Period for the first 7 days on www.HUDHomestore.com. These properties are available for purchase by Good Neighbor Next Door participants, HUD-registered non-profit organizations, and government entities. When the Lottery Period ends, these properties enter the Exclusive Listing Period.

Properties in the Exclusive Listing Period are available for purchase by Owner Occupants, non-profit organizations, and government entities. The duration of this period will vary depending on the property’s FHA insurability.

If the property is being sold as Insured (IN) or Insured with Escrow (IE), the Exclusive Listing Period is 30 days. Bids received during the first 10 days are considered to be received simultaneously, and the initial bid review is on the 11th day of the Exclusive Listing Period. If there is no winning bid, bids continue to be reviewed on a daily basis (Monday through Saturday) until the 30-day period ends.

If the property is Uninsured (UI) or Uninsured 203(k) eligible (UK), the Exclusive Listing Period is five (5) days. Bids received during these five (5) days are considered as though they are received simultaneously, and are not opened until the 6th day of the Exclusive Listing Period.

There are three main types of FHA Financing. More information may be obtained from any mortgage company familiar with FHA Guidelines for the various programs. (1) 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” (2) 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. (3) 203(k) – Rehab Loan – Listed as “203K ” • 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.

The DE Underwriter will determine the final 203(b) mortgage amount. The DE Underwriter will take into account the repair escrow amount to determine the FHA loan amount. The DE underwriter will determine this amount. Regardless of whether or not a repair escrow will be used in the purchase of a home, the lines on the Sales Contract that request the down payment amount and the secured mortgage amount should be filled in “TBD” (To Be Determined). The line associated with the length of the loan should also be filled in TBD. Please remember that the repair escrow amount needs to be filled in only if the buyer is using 203(b) repair escrow financing.

HUD will allow to be deducted from its proceeds, purchaser financing and closing costs that are considered to be reasonable and customary in the jurisdiction where the property is located. In no event may these costs exceed 3% of the property’s gross purchase price. Please reference HUD Notice H2006 -12 for additional information. Please refer to page 2 of your state/regional Forfeiture and Extension Policy for a list of the closing costs that will automatically be paid by HUD and other closing costs that may be paid by HUD.

A Pre-Qualification Letter must be obtained prior to bidding on a property. This is to avoid having to tie up the property with a transaction that is unlikely to close. The Pre-Qualification letter must be directly from the lender (NOT the mortgage broker) giving a current date and an amount of the loan that is acceptable. It should also include the name the buyer(s) whose credit report was reviewed and approved by the lender.

Sales transactions shall close within the time frame as specified on your state/regional Forfeiture and Extension Policy (Addendum A, Rev 11-13-06). Closing time frames are: (California and Georgia=45 days*); (Hawaii, Guam, Northern Marianas=60 days). Properties may close in less than the time frame specified. However, the amount of days specified above for your state/regional area MUST be entered on the HUD Sales Contract. If closing does not occur within the time frame then extension fees will apply. The Broker must submit a written request for an extension regardless of the reason for the delay in closing. The Extension Request Form can be found in the forms section of this website and must be accompanied by the extension fee.

Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.

Check the listings for your state. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD’s regulations for the program.

HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this “silent second” provided that you fulfill the three-year occupancy requirement.

The number of properties available is limited and the list of available properties changes weekly.

Another one of HUD’s Special Sales Program under the Good Neighbor Initiatives is the Direct Sales to Non-Profit Organizations and Government Agencies. This special sales program under which approved non-profit organizations and government agencies may purchase properties at discounted prices for use in local housing or homeless programs. More information on this program can be found at http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm

FHA guidelines will limit the underwriter to insuring the loan for the lower of two values; the offer price or the appraised value (displayed as the As-Is Value). If your offer price is higher than the appraised value, the FHA underwriter will require that your buyer(s) cover the overbid amount with a cash deposit. The buyer(s) will not be allowed to build the overbid amount into an FHA loan. HUD’s mortgagee letter 2000-27 will require that the FHA UW use the appraisal obtained. This mortgagee letter instructs the FHA UW NOT to obtain a new appraisal; nor can the FHA UW request that new comps be pulled and the appraisal updated. If your offer price is higher than the appraised value and tentative acceptance is extended to you, the options available to you are: 1. Proceed with contract execution. The selling broker will be required to verify that the cash reserves are available to cover the overbid amount before we execute the contract. 2. Use cash or conventional financing. All of the guidelines outlined above apply to FHA financing only. A conventional lender will have their own set of guidelines not governed by HUD. 3. Cancel prior to contract execution. If there is an acceptable backup, we will award tentative acceptance to the backup offer. If there are no acceptable backup offers, the property will be re-listed.

Agent/ Brokers FAQs

What do I do if I have problems signing in?

Do the contractors selling and maintaining the homes for HUD have-toll-free numbers?

Who can buy a property on HUDHomestore.gov?

How do I search for a property?

When I click a state on the map, I don't get as many homes. Why?

Why do I have to register and create a login?

What are the listing periods?

Where do I go if I have questions about a property?

What are the HUD Special Programs?

How can I find out if I'm eligible for one of the special programs?

Who are the contacts for the HUD property for sale?

What is a HUD home?

Who can buy HUD homes?

Who can sell HUD homes?

How do I register to sell HUD homes?

What is a NAID number?

What is a Listing Broker?

Do I need a Realtor to place a bid for me?

How do I find a property to bid on?

How can I obtain financing for my property?

Do owner-occupants have a priority in bidding?

What are my financing options?

I am an investor. When can I bid on a HUD property?

Can a buyer elect to use his or her own closing agent?

If I don’t like the home that I chose, can I decline the acceptance?

What is the earnest money held for, and can I get it back?

When can I complete a home inspection on the property?

Can I make repairs to the property if needed prior to purchase?

Does HUD give money for repairs to the property?

How much money do I have to put down on a home?

What are the various listing periods and how do they pertain to the Owner Occupant Period?

How do I get access to show the property?

How can I cancel my Bid?

What is FHA financing?

How is the repair escrow amount determined?

How do I determine the mortgage amount when there is a repair escrow?

Will HUD pay for any closing costs?

Why do I have to get a Pre-Qualification Letter before I bid?

How long do I have to close? What if I need more time?

What is the Good Neighbor Next Door Program?

How the Program Works

How to Participate in Good Neighbor Next Door

Does HUD have special programs for Non-Profits and Local Government Agencies?

Is there anything else I should know about HUD Homes?

If an agent or broker would like to make a bid as an owner occupant or investor, can they still charge commission to HUD?

If an investor or any buyer gets a property awarded but lender does not accept HUD’s appraisal, and their own value comes in lower in another appraisal, can HUD adjust price?

If someone does not have a social security number is there any way for them to bid?

What if there is a lien on a property? Who pays for it?

Is there a “buyer’s remorse period?”

What if my offer price is higher than the appraised value?