•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.

If 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.

• It is MANDATORY that the earnest money be a cashier's check or money order ONLY - no personal checks

• 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.

SALES CONTRACT and REQUIRED ADDENDA:

• HUD SALES CONTRACT Form 9548 Revision (1/99)

• Attach the following Addenda:

* Lead Paint Addendum, if the property was built prior to 1978

* Notice to Purchasers Addendum when the offered amount exceeds the appraised value at the time the offer is submitted

* Certification of Owner-Occupant , if purchaser is an owner-occupant. HUD Form 9548D

* General Addendum to Sales Contract

* Letter from a Financial Institution acknowledging that purchaser has funds available for downpayment

* Mortgage Pre-Qualification Letter from a lending institution, if the purchase is to be mortgaged, stating that an in-house credit check has been performed and the purchaser has been pre-qualified for a mortgage up to a specified mortgage amount

* Certification from a Financial Institution, if the purchase is cash, stating that funds are available on the day of closing.

* Radon Gas and Mold Notice and Release Agreement

* FOR YOUR PROTECTION GET A HOME INSPECTION

To obtain an original HUD Sales Contract Form 9548 Revision (1/99):

• Order the forms by calling (888) 285-6111 or fax your request on company letterhead to (817) 885-8020 or reference HUD's website at www.hudclips.org
• Contact our offices

Certification of Owner-Occupant Status: All bids by owner-occupants, who are purchasing properties listed in the owner-occupant category, must include an Owner-Occupant Certification. Sanctions will be immediately imposed upon Brokers, Agents and Investors found to be abusing the system.

Flood Insurance Notification: 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.

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

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.

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

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, NC, 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 and 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

The following provisions are applicable in all instances except those where HUD is unable or unwilling to close the sale, in which case the entire amount will be returned:

Investor Purchasers:

Uninsured Sales:
• 100% of the deposit will be forfeited to HUD for failure to close, regardless of the reason.

Insured Sales:
• 50% of the deposit will be forfeited to HUD for failure to close if the purchaser is determined by HUD to be an unacceptable buyer.
• 100% of the deposit will be forfeited to HUD if the sale fails to close for any other reason.

Owner-occupant Purchasers

Return 100% of the deposit when:
•There has been a death in the immediate family (purchaser, spouse or children living in the same household).
•There has been a recent serious illness in the immediate family that has resulted in significant medical expenses or substantial loss of income, thus adversely, affecting the purchaser's financial ability to close the sale.
•There has been a loss of job by one of the primary breadwinners, or a substantial loss of income through no fault of the purchaser.
•For an FHA insured sale, HUD (or a D.E. underwriter) determines that the purchaser is not an acceptable borrower. For an uninsured sale, the purchaser was pre-approved for mortgage financing in an appropriate amount by a recognized lender and, despite good faith efforts, is unable to obtain mortgage financing. "Pre-approved" means a commitment has been obtained from a recognized mortgage lender for mortgage financing in a specified dollar amount sufficient to purchase the property.
•There is other equally good cause, as determined by HMBI, in keeping with the spirit and intent of the above policy.

Return 50% of the deposit when:
•For an uninsured sale, despite good faith efforts by the purchaser, there is an inability to obtain a mortgage loan from a recognized mortgage lender.

Forfeit 100% of the deposit when:
•No documentation is submitted.
•Documentation fails to provide an acceptable cause for the buyer's failure to close.
•Documentation is not received by HMBI no later than close of business on the tenth (10th) day following cancellation of the contract.

Vacant Lot Sales:
•The purchaser is considered to be an investor and instructions pertaining to investors will apply.

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).

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

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.

PROCEDURES

The following points are here to clarify any questions and to list out the policies and procedures for your convenience. For SALES CONTRACT SUBMISSION, ELECTRONIC BID WITHDRAWL, and/or BROKER REGISTRATION, please submit materials to your local regional office listed below.