HUD Homes are sold "As Is" without warranty.


HUD reserves the right to waive any irregularity in any bid, reject any and all offers, and to withdraw a property at any time.


Please ensure that the name of the Purchaser(s) on the sales contract are the actual parties who will OCCUPY the property after closing to avoid committing fraud. Example: Parents who submit a bid as Owner Occupants but allow their children to live in the property after closing would be committing fraud. It would be acceptable for parents to purchase as Investors and allow their children to live in the property.


Brokers should advise Purchasers that the properties may contain code and/or zoning violations. Our contract requires us to identify code violations in the Property Condition Report.


No guaranties and/or warranties are made. No repairs will be performed by HUD after closing. HMBI will ensure that prior to execution of a sales contract, all available property condition information will be disclosed in the property condition report and environmental compliance record. Purchasers are encouraged to have the properties inspected by a qualified home inspection service company to satisfy themselves as to the condition of the property. Purchasers have 15 calendar days from the date of the Purchaser's signature on the sales contract to conduct, at the purchaser's expense, any inspections, test or risk assessments desired by the Purchaser.


Contact a HUD Approved Broker to visit listed homes or to make an offer. HUD will pay selective closing costs up to 3% of the purchase price, If the closing costs are included in the bid and inserted on the appropriate line of the sales contract. Click here to view HUD Notice H-2006-12 explaining which closing costs are allowable and the maximum amount in your appropriate state.
You may obtain a copy of the "buyer's kit" at

listing codes

(IN, IE, UI)


All properties listed as "INSURED" are eligible for FHA financing. These properties are eligible for insurance under Section 203(b) of the National Housing Act. An interest rate will be charged on the loan and is negotiable between the purchaser and lender. The mortgage may include some mortgage insurance payments. The originating lender is responsible for making final determination whether a property meets Minimum Property Standards and, consequently, is eligible for FHA insurance.


Properties listed as "Insurable with Repair Escrow" are eligible for an FHA 203(b) insured loan. The lender making the new FHA 203(b) loan establishes an escrow for the amount of the repairs which includes a 10% contingency, not to exceed $5,500. The identified repairs are required to meet FHA's "minimum property standard" (MPS) and the total repair costs should be equal to or less than $5,000. If a 203(b) FHA insured loan is used for financing, the repair escrow must be used for the needed work specified in the listing.

Repairs must be accomplished within 90 days of closing and be monitored by an FHA lender. The lender will inspect work as it is completed on the house and distribute the repair monies as appropriate within ninety (90) days of closing. The costs of repairs are included in the loan amount and repaid by the borrower as part of the monthly payment. Any funds in the escrow account not used for the repairs will be applied to reduce the unpaid principal balance of the loan. The escrow does not apply if the buyer is not utilizing FHA loan financing.


Properties listed as "UNINSURED" means that certain repairs and/or improvements are required to be eligible for an FHA 203(k) mortgage. The required repairs on most of these properties exceed $5000.00. Purchasers of these properties have the option to purchase "as-is" with cash or conventional financing. These properties maybe eligible for a FHA 203(k) mortgage if the required repairs and or the improvements are completed in accordance with FHA guidelines. Ask a FHA lender for more details.



HMBI will prepare a property condition report for each property. Prior to completing a property appraisal HMBI will prepare and provide to the appraiser a comprehensive property condition report that provides potential purchasers with any information known to HMBI that may affect the habitability, functionality or value of the property, including but not limited to: the functionality of all heating, cooling, plumbing, gas and electrical systems and appliances; outstanding code violations, pending litigation, demolition orders, other legal actions that may impact the property or violations of Homeowner's Association covenants that are known to HMBI and that will not be resolved prior to closing; condition of the septic system or well; existing transferable warranties; copies of Homeowner's Association documents; the Environmental Compliance Record, the lead based paint disclosure, and the mold disclosure. The completed Property Condition Report will be posted in the property file on EMS and will be made available to prospective purchasers through the Internet Property Listing.


& bidding

New listings are available weekly on Friday mornings. During the Initial listing period, bids may be submitted by Owner Occupants only during the first 10 calendar days.

Owner Occupant Priority Period.

All Owner-Occupant offers received during this 10 day Exclusive Listing, shall be considered to have been received simultaneously. In order to be valid for the period, bids must be completed and confirmed on the Internet.

Owner-Occupant bids will be opened and reviewed and the highest acceptable net bid to HUD will be selected. Bids will be reviewed and posted at 1:00 p.m at the conclusion of the 10 day Exclusive listing period.

General Public Bid Period.

At the conclusion of the 10-day Exclusive Listing Priority Period, all general public bids will be accepted. These bids will be reviewed and the highest acceptable net bid to HUD will be selected. In the event the property remains unsold after these bid openings, daily bids received by 11:59 p.m. will be reviewed and results will be posted the next day at 1:00 p.m.

Bids received on the same day shall be considered to have been received simultaneously. Friday, Saturday and Sunday bids will be reviewed simultaneously on Mondays at 1:00 p.m., and the highest acceptable net bid to HUD will be selected.

In the event the property remains unsold, the bids (Owner-Occupant and General Public) will be reviewed and posted daily at 1:00 p.m. and the highest acceptable net to HUD bid shall be selected. This listing will remain in effect until the listing has been sold or withdrawn from the market to be reanalyzed. Bids must be completed and confirmed on the Internet before 11:59 p.m. in order to be valid for that day and will be opened the next day excluding Friday, Saturday and Sunday which will be opened on Monday.

Brokers must submit bids through Internet bidding at this web page.

Sales Contract Submission.

Brokers are required to review bid announcements to verify if their offer was the selected offer. Brokers must submit the original HUD Sales Contract Form 9548 (1/99) along with all necessary addenda within 48 hours after the announcements are posted. Submit documents to your regional office on the left. To be acceptable, hard copies must contain no errors.


By same purchaser on same property

If multiple bids are submitted on the same property on behalf of the same purchaser, only the bid producing the highest net return to HUD will be considered.


By same different properties by smae owner-occupant purchaser

HUD allows an owner-occupant to purchase only one property. If a prospective owner-occupant purchaser submits bids on more than one property, the bid will be considered in the following sequence:

  • If the prospective owner-occupant purchasers bid is the only acceptable bid on one of the properties, then that bid will be the only one considered.
  • If not, the bid that produces the greatest net return to HUD will be considered and all other bids submitted by that prospective purchaser will be eliminated from consideration

required contract


f your bid is selected, a completed contract (with the required Addenda) must be in our office within the next 48 hours of Bid Results Publication or it will be considered canceled and the second highest acceptable net bid to HUD will be selected
To ensure that you submit an acceptable Sales Contract, please take a moment and ensure that the following are correct:

  • Where Real Estate agent signatures and/or initials are required, only the broker signs the contract and initials other documents.
  • The purchaser must sign the radon, gas and mold form and lead-based paint addendum.
  • Line 9 of the Sales Contract must reflect 45 days.
  • The "other addendum" box on line 11 of the Sales Contract must be checked.
  • All purchasers must initial line 12 of the Sales Contract.
  • Line 6b of the Sales Contract is left blank.




The purchaser shall provide the Closing Agent proof of flood insurance as a condition of closing for all improved properties located in a special flood hazard area where flood insurance is available through the National Flood Hazard Insurance Program, even if it is not required by the Purchaser's lender, if any. This requirement does not apply to vacant lots, properties sold to ACA partners that are scheduled for demolition or properties sold without any type of Federal Assistance including, but not limited to discounts, Purchase Money Mortgage's sales incentives and closing cost assistance.

electronic bid


You may withdraw an electronic bid by downloading our Electronic Cancellation Form, completing the form and sending via e-mail or fax to the appropriate regional office, no later than 10:00 a.m. on bid opening day. Please refer to the list of regional offices to the left to find the one closest to your locatoin.
The message must include:

  • Broker's Name
  • Tax ID Number or SSN
  • Agent's name and telephone number
  • Reason for cancellation

Key information concerning the bid:

  • * Case Number
  • * Address
  • * Bid Confirmation Number

counter /

backup offer


Properties that are listed during the Exclusive and Extended Listing Periods may be eligible for counter offers. If after fifteen (15) calendar days we have not received an acceptable offer, we may extend a counteroffer if the original offer meets certain criteria approved by HUD. We will notify the selling agent or broker in writing of the predetermined net price that would be acceptable.

We will post the counteroffer and the period for resubmitting bids on the website. Brokers will be required to resubmit a second bid online that meets or exceeds the requirement. We will review all counter offers in conjunction with the competitive bids submitted prior to the bid deadline We will accept the bid producing the highest acceptable net to HUD and post the acceptable offer in the bid results.



Owner Occupants Only:

3% Minimum Down payment for FHA financed properties. Maximum mortgage amount 97% of the appraised value or sales price whichever is lower.


1 unit: 25% Minimum Down payment, for FHA financed properties;
2 to 4 units: 15% Minimum Down payment, for FHA financed properties.

earnest money


HUD requires all bids received during the Exclusive or Extended Listing Periods be backed by earnest money in the form of certified funds (Cashiers Check, Official Bank Check, or Money Order only). No later than seventy-two (72) hours following receipt of a signed sales contract, the Selling Broker may be required to deliver the funds to HUD's Closing Agent in accordance with local customs.

Required Earnest Money:

The Selling Broker will forward the Earnest Money to the Closing Agent after contract execution. Brokers in IL, IN, SC, VA and WV will hold the money in their Trust Account.

Earnest money deposits must be provided in one the following methods: Cashiers Check, Official Bank Check, or Money Order only with no termination date or cancellation provision, payable to both HUD and the buyer by utilizing the word “or” within it. For example, “HUD or Jane Doe”.

The Exceptions Are:

Alaska: Earnest Money payment should be made payable to STEWART TITLE
North Carolina Earness Money should be made payable to HUD's Closing Agent TRUST TITLE, Trust Title Company, Suite 250, Attn: Finance Department, 11440 Isaac Newton Square North Reston VA 20190,
South Carolina: earnest money should be made payable to HUD's Closing Agent or the Selling Broker

Required Earnest Money Amount:

  • $1,000 for offers greater than $50,000; (not to exceed $2000)
  • $500 for offers $50,000 or less,
  • 50% of the Listing Price for Vacant Lots



HMBI will provide, at no charge, one copy of the appraisal to the winning bidder for use in obtaining a mortgage loan. If, for any reason, the winning bidder's lender requires a new or updated appraisal report, the cost of that report will be the responsibility of the winning bidder. However, the lender for a winning bidder obtaining any type of FHA insured financing report except a 203(k) rehabilitation mortgage must use the Contractor provided FHA appraisal report unless the report is more than six (6) months old on the date the sales contract is executed.



For Sales Contracts executed before October 12, 2006, HUD pays certain Closing Costs up to 5% of the purchase price, IF the closing costs are included in the bid and inserted on line 5 of the sales contract.

HUD does not pay a buyer's closing costs or real estate broker fees on the purchase of property through the OND/TND program.
HUD has issued Notice H-2009-17 in replacement of Notice H-2009-04:

Upon closing of a HUD-owned single family property, the Department will allow to be deducted, from its proceeds, the purchaser’s financing and closing costs considered to be reasonable and customary, in the jurisdiction where the property is located. Form HUD-9548 (Sales Contract – Property Disposition Program) shall be used to reflect the total dollar amount HUD is expected to pay towards a purchaser’s financing and closing costs. However, in no event may the costs exceed three percent (3%) of the property’s gross purchase price. If the total closing costs reflected on the HUD-1 settlement statement are less than the amount indicated on the sales contract, HUD will reimburse only the actual costs charged and will not credit the purchaser with any difference either in cash or through a reduced purchase price. Within the three percent (3%) of the Allowable Closing Cost allowance, HUD will reimburse loan origination fees of up to one (1%) of the purchase price. However, on an FHA 203(k) rehabilitation mortgage loan, HUD will reimburse loan origination fees of up to the following amount: one percent (1%) of the total 203(k) mortgage amount, plus the Supplemental Origination Fee calculated on line B11 of form HUD- 92700. (Line B11 is the greater of $350 or 1.5% of the total of rehabilitation costs and allowable fees).


time frame

All purchasers must close on or before forty five (45) days of contract acceptance date for all bids submitted.


extension policy

Closing Extension Request: If the closing is not expected to occur on or before the specified time on line 9 of the HUD Sales Contract 9548, the Broker must forward a written extension request to HUD's closing agent prior to the expiration of the time specified on the sales contract. HMBI, as HUD's Representative, may grant an extension of closing time and, if approved, extensions will be granted for a period of fifteen (15) days.

Submit the Extension Request Form and all the required supporting documents to HUD's Closing Agent prior to the expiration of the sales contract. Documentation submitted with the extension request must establish that a closing can reasonably be expected to occur within the extension period.

The extension request must be accompanied by a cashier's check, money order or other certified funds in the appropriate amount and made payable to HUD. The fee is based on the Contract Sales Price:

  • Contract Sales Price equal to or less than $25,000: Extension fee is $10 per day ($150)
  • Contract Sales Price of $25,001 to $50,000: Extension fee is $15 per day ($225)
  • Contract Sales Price over $50,000: Extension fee is $25 per day ($375)

The initial 15-day extension will be provided for owner occupant purchasers, at no cost, if documentation is provided indicating that proper and timely loan application was made, that the delayed closing is not the fault of the purchaser and that mortgage approval is imminent. The extension fee will be retained by HUD. In the event that the purchaser closes prior to the end of the extension period, the unused, prorated portion of the extension fee will be credited to the amount due at closing.

The approval of an extension does not obligate HMBI, as HUD's Representative, to grant future extensions.



Broker Registration and NAID Number: You must be a HUD Approved Broker and have a valid NAID Number (previously supplied by HUD) before performing Electronic Bidding.

If the Selling Broker is not a HUD Approved Broker and wants to submit an electronic bid, you will need to complete Forms SAMS 1111 and SAMS 1111-A and return them with original signatures to the appropriate HMBI before an electronic bid can be made.
Additional Requirements:

  • Broker's License
  • W-9
  • SSN or Tax ID number – If using a SSN, a copy of the signed Social Security card and a copy of your drivers license is required. If using a tax identification number, verification of tax identification number is required from an IRS document.

All Broker Registration requests should be sent to the addresses on the left.



Broker Commission: Up to 5% commission of the purchase price to the Selling Broker, IF the commission is included in the bid and inserted on line 6a of the HUD sales contract Form 9548 (1/99).