Finance Codes, Listing Codes, Bidding

Bidding Information

Who can bid on Hud Homes – only HUD approved real estate agents w/ a NAID number can bid on behalf of buyers

Agents must make sure they are registered w/ hudhomestore.com. To bid and register, you will need your principal broker’s NAID number – your broker must be registered. You will also need to know your license #, license issue date & expiration date. Be mindful to update your expiration date on HUD's site when you renew your license.

Registered non-profit organizations and registered government agencies may submit bids without the use of a real estate broker or agent

For Agents To Register:

In the top right corner click “Bidder” under the “Register Box”
Create username and password
Follow the directions.
You can also go here: https://www.hudhomestore.gov/Listing/BidderRegistration.aspx?sLanguage=ENGLISH

Typically, buyers are owner/occupants, government agencies, nonprofits approved by HUD

HUD will not pay commissions for any selling broker who bids on HUD homes to purchase for themselves

Who can't bid on Hud Homes/conflict of interest – listing brokers or any of their employees or agents, or any of their family members, or their businesses. Also applies to Buyer's Select Closing Agent (BSCA).

How Bids Are Reviewed

Bids are accepted 24/7 but are not reviewed on weekends and holidays.
Bids received on the same day are considered to be received simultaneously.
Bids received on Friday, Saturday and Sunday are considered to be received simultaneously.
Two acceptable bids in the same amount are selected by a randomized electronic drawing.

Financing Codes and Types For Bidding

Found inside the property listing at HudHomeStore

Click on the property --> Listing Information --> FHA Financing

IE (Insured Escrow) - Insurable w/ repair escrow. The property is eligible for an FHA 203(b) loan w/ repair escrow. The repairs total less than $10,000. The repair amount is escrowed and done after closing. Repair escrow is added to the mortgage and financed w/ the mortgage; it is not included w/ the purchase price. The buyer is the one who is paying for the repairs. The escrow is not paid by HUD.

IN = Insurable - this property is eligible for an FHA 203(b) insured loan in its current condition. An FHA 203b loan is commonly, simply, referred to as an "FHA loan" or "FHA mortgage." People just don’t normally call them FHA 203b.

UI = Uninsured - this property requires repairs estimated to cost more than $10,000; it is ineligible for an FHA-insured loan, unless a 203(k) loan can be arranged.

If there is a buried oil tank anywhere on the property, it will automatically be coded UI.

Financing Type

When bidding you will be asked what type of financing buyer has.
Click here to see when submitting a bid from HUD's website.
Here are a few common financing types that often get confused:

“Regular” FHA financing – box 1
Conventional/VHDA – check conventional box
VA or VA/VHDA Buyer – applying for Conventional or other financing not involving HUD/FHA

Listing Period, Owner Occupied Priority Explained

Listing Periods - tells what type of buyer is eligible to bid

Exclusive - HUD approved nonprofits, government agencies, or owner occupants
Extended – all bidders
Lottery Rounds – if the property is put in the lottery status (not all are) they are not available to the general market; for GNND (good neighbor next door) buyers, Government Agencies, Nonprofits; Bidding period goes for 6 days & the bid is awarded on the 7th day. If no bid into the exclusive or extended bid period.

Owner Occupants Priority

Insurable (I) & Insurable w/ escrow (IE) for Owner Occupants

Exclusive listing period for 30 days
Sealed Bidding - the first 10 days of 30‐day Owner‐Occupant Exclusive Listing Period is the sealed bidding period. Bids will accumulate for these 10 days and will only be revealed by the system for review on the morning of the 11th day.
If no bid is awarded on the 11th, day bids are due every day at 11:59 pm for the owner-occupied exclusive period. Bids can be accepted, countered, withdrawn, or rejected daily.
If no bid is accepted during the remaining Exclusive Bid Period, it opens to investors on the 31st day and goes to the Extended Period

Uninsurable (UI) for Owner Occupants

Sealed Bidding - there is a five (5) day Exclusive Listing Period that is a sealed bidding period
Bids accumulate for 5 days and will only be revealed for review on the 6th day
If no bid is awarded on the 6th, day bids are opened to investors as well as owner occupants for the Extended Period

Bid Open Dates, Bid Deadlines Explained

Bid Open Date

The date that bids open up for the Exclusive or Extended Listing Period it is in
Found on the front page

Bid Submission Deadline

When bids are due for the Exclusive or Extended Listing Period it is in
For example, if the bid is during the sealed period, it will tell you when sealed bidding deadline is.
Found when you click on the property --> top left corner

Period Deadline

When the bidding will stop for Exclusive or Extended Period
Found when you click on the property -->right side --> Listing Information --> Period Deadline

Time for all deadlines is 11:59 pm CT

Submitting A Bid - For Selling Agents

There are 3 ways to locate the property your buyer wants to bid on:
1. Go to the home screen of hudhomestore & enter the property case # and it will appear if available.
2. Go to the home screen at hudhomestore & do a general search for properties available in VA, or VA and desired city.
3. Login to your own account & enter the case # of the property.
Once you’ve identified the property, check the type of eligible buyer – Extended or Exclusive (or Lottery)
Click on the property
Click Addendums and download the Property Condition Report & Disclosure
1. Look at both forms before submitting a bid to get more of an understanding of the condition
2. Property Condition Report info:
  1. If it states "util on" next to the system, that means the utilities were able to be turned on. If it states generator, utilities were not on.
  2. Water – it could state pressure test failed for unknown reason. It could be a small leak or something bigger. B/c of this you, won’t be able to turn on the water for inspections. Also, water & electricity may need to be on for gas to be turned on. So, ask your lender if water needs to be on for the appraisal & if your buyer is okay w/ having a home inspection w/ no water on.
Click on ‘Submit an Offer’ blue button at the bottom right
Enter NAID Type (Selling Broker)
Enter Broker’s NAID #
Enter Your Real Estate License #
State Not a Robot and Verify NAID
Next you will be taken to the property and you have 15 minutes to submit the Bid
Fill out the fields to submit the bid
1. You will also need to know your buyer’s EIN number or social security number.
2. The information entered on the bid submission page will become the first page of the sales contract
Bid Lines:
Line 3: Offer Price
Line 4: Type of Financing
Line 5: Closing Costs (if asking HUD to pay)
1. Entered as a numeric figure (not a percentage)
2. HUD will pay up to 3% towards Owner Occupied Buyer’s closing costs
3. HUD will not pay closing costs for investors - must be $0.00when bidding
Line 6: Agent Commission
1. will pay up to 3% of the purchase price to selling agent as a commission
2. Selling agent can lower commission to $0.00
3. Will populate 3% for the listing broker - listing broker commission is never changed
4. Will not pay commission for selling agent who is also the purchaser, even if an owner/occupied purchaser
Line 7: Net to HUD
1. The Net to HUD is the key, not the purchase price.
2. Broker Bonuses and Repair Escrows do not change the Net to HUD
3. Purchase Price – Closing Costs – Commission = Net to HUD
Line 8: Buyer Type
Line 9: Do you want to hold the bid for back-up to accepted offer?
1. If the accepted offer falls through, HUD can come back to the selling agent and accept or counter. If they do accept later on, you still have to respond for the buyer. So, if the buyer has found another property, he doesn’t have to take it.
The next few lines are about Purchaser information, Buyer’s selected closing agent/company (BSCA) information
1. Make sure all of the information is correct, b/c this will be used by HUD when they generate the DocuSign
2. The selling agent will have to verify this information is correct when the bid is accepted.
3. *Make sure the Buyer’s settlement office/closing company is familiar with selling HUD homes. Selling a HUD home is different than working w/an FHA buyer in a normal sale. The settlement company also has to be registered w/ HUD. This is VERY important. They need to have a title ID and access to Yardi/P260
You need your buyer’s SS# or EIN #, Purchaser’s address, phone #, email address; Closing agent info: email & phone #.
1. You can add up to 4 buyers.
You need to input the broker of your company who has primary authority to sign on behalf of your firm for HUD contracts.
Next page - Review your bid and confirm to submit.
Keep a copy of the bid confirmation number
Once your bid is submitted, you can login and check the status to see if it is accepted, cancelled, or put on backup status. You can modify your buyer's bid or withdraw the bid – prior to the bid date opening. So, for example, if the bids open daily, you can modify the bid by 11:59 pm CT
HUD will send you an email once your bid is accepted of what the EMD amount needs to be and how to get it into escrow.

Kelly Behrens

Real Estate

757-348-7853