BUYER REQUIREMENTS AND INFORMATION


Let me be your Buyer's Agent and help you secure your home directly from HUD.  

All potentional buyers must be qualified.  "Blind" appointments requests will not be honored under any circumstances.  In order to get an appointment to view a HUD home:
  • You must  pre-approved.  The nature of real estate requires that you be both willing and able, which means  you're both committed to buying and financially able to buy a home.  The first step in buyiing a home is consulting with a lender.  Please email or fax your pre-approval letter before requesting an appointment.  Appointments contingent upon receipt of a pre-approval letter will be cancelled if the letter is not received before the scheduled time.  Letters must be on company letterhead and inlcude lender contact information--name, office address, and office phone number--for verification.  Once your letter is received, I will commit my time, efforts, and resources to ensure you get a great deal.
  • I have an EXCELLENT lender recommendation who, in addition to providing lowest fees and lowest interest rates, can provide same-day, over-the-phone preapprovals.   Email me for lender contact information.  If you choose your own lender, keep in mind that while all lenders offer FHA loans, not all lenders particpate in the $100 down program and offer 203K loans.
  • Cash buyers may fax or email a proof-of-funds letter.  Same letterhead and appointment contingency applies.
  • No home sale or home purchase contingencies. 
  • You must be willing to place one of the suggested bids. I have a proven track record in securing HUD homes for the lowest possible price. Newer listings require a higher bid than properties that have been on the market longer.  As a home remains unsold, I will lower my bid estimates.   If the lowest suggested bid is not acceptable to you, check with me to see when I will lower the bid estimate. (I may already have a lower bid but have not had time to update the posting.)  If the next lower bid is still not low enough, suggest the bid you have in mind. I will monitor the property and advise when it can be obtained at your striking point.  Time and resources are valuable commodities.  I do not blindly submit lowball bids that don't have a chance at acceptance. 
  • Only properties obtainable within the lender-approved purchase range will be shown. This is not a window shopping activity. 
In order to place a bid on a HUD home:
  • You must provide $1,000 earnest money.  No personal checks.  Cashier's Check or Money Order only.  HUD policy state that all bids be backed by $1,000 earnest money.  If your bid is accepted, your funds are applied to your down payment/closing costs.  If your bid is not accepted, your check is returned to you uncashed.  Checks should be made payable to "Keller Williams or Buyer," where Buyer is your name.
  • You must be able close within 45 days after the accepted contract is signed by HUD.  Contracts are typically signed 7-10 days after bid acceptance.  Extensions can be granted, but there may be a fee involved if the delay is due to the buyer.  There is no fee to the buyer if the delay is due to HUD. 
I represent buyers only under exclusive agency agreements, so if you are currently represented by an agent and actively touring homes or you wish work with multiple agents, please contact your agent or one of the agents you already have.  If you don't have an agent, you wish to change agents and work exclusively with me, you want to target an area your agent doesn't service, and/or your agent isn't knowledgable of, care to work with, and/or registered to work with HUD listings, I welcome the opportunity to help you.  Call and talk with me!

The rules and prcoedures for acquiring a HUD home are firmly established.  Buyer must accept that properties are sold on HUD's terms.  The fact that you may have bought several properties in the past is irrelevant.  If you do not agree to abide by the working procedures I have established to adhere to the HUD's policies, a HUD home is not for you.  A PDF of detailed HUD procedures and information can be emailed to prospective clients upon request, as can a PDF of the property condition report to confirmed clients who have targeted a specific home. 

AS-IS:  When you bid on a HUD home, you understand that the home is as-is.  The price of the home is based on the condition.  You do not have the ability to negotiate repair credits or price reductions based on improvements needed or the results of the home inspection, .  If you win, you agree to abide by HUD's terms and complete the sale.  If you do not comply and/or withdraw from the sale under any reason except those allowed by HUD, you will forfeit some, if not all, of your $1,000 earnest money, as outlined by HUD.

INVESTORS: A Homeowner's Association may have restrictive convenants to owner occupancy ownership as it relates to renting and leasing.  It is the responsibility of the investor bidder to complete further research regarding restrictions before bidding and/or signing a purchase agreement.  Should default occur under this condition, HUD will retain the earnest money deposit. Neither HUD, HMBI, or Keller Williams Realty assume any liability for the buyer's failure to verify restrictive convenants. 

CLOSING COSTS:  Bids may include up to 3% of the purchase price to be used for allowable closing costs.  Note the caveat:  allowable.  In practice, this amount usually ends up being between $1500 - $2000, so I recommend including $1500.  Posted bids do not include closing costs, so if you take advantage of this option, the bid will be be increased accordingly.  Your loan officer will provide a good faith estimate of actual closing costs once you have selected a property and decided upon the type of financing.  

Buyers are advised that under the Illinois Condominium Property Act, a purchaser of a foreclosed property may be liable for up to 6 months of past due assessments, depending upon if and at what point legal action was taken against the former owner.  Unfortunately, this information is not usually available until after the bid is won and the contract has been fully executed.  In practice, HUD has always paid all outstanding liens on the property, so while such a situation is possible under the Act, it is a remote one.

Buyers are hereby advised that I do not "hold" properties.  A property will be shown until it is sold.   However, once I submit a bid, your bid amount is confidential.  I will not advise other clients of your bid in order to outbid you.  I will not  suggest bid amounts for that property to other interested parties.  However, if someone else wants to bid on the same property and personally suggests a bid amount higher than your confidential bid, I will submit that bid.