Thursday, December 19, 2013

Attention Brokers / Agents:  Changes to the bid opening guidelines (effective December 2, 2013):
Here’s what has changed:
- Exclusive listing period for FHA-insurable homes is 15 days instead of 30.
- Bids coming in on Friday, Saturday, or Sunday will be grouped together for the Asset Manager’s consideration on Monday.
- The 10-day bid-accumulation period at the beginning of the Exclusive period for FHA-insurable homes will be extended up to three days depending on whether the 10th day falls on a Friday, Saturday, or Sunday, and if there’s a Monday Federal holiday.
Note: This does not apply to the 5-day Exclusive bid-accumulation period for FHA-uninsurable homes since day 6 falls in the Extended listing period.
- Bids coming in on a Federal holiday will be grouped with the previous days’ bids.
Happy Selling!!!

Friday, July 12, 2013


YAY!   Finally, the buyer can choose their own closing attorney on HUD transactions without having to go through all the rigmarole that we have been put through when attempting a 3rd party closing through the HUD Designated Closing Attorney.    The process has already begun and here's what you need to know as a buyer or selling agent to make your HUD transaction smooth.  

1.  Closing agents (attorney's) must register for a Closing Agent ID # through HUD.  The process to do this is as simple as being the closing attorney on a HUD contract.   The closing attorney will need to provide a copy of their $1 Mill E/O Insurance and a copy of their state Bar License to the selling agent to include with the contract package.   NOTE:  This will only have to be done once.   HUD will issue a BSCA ID# to a firm after receiving their E/O ins and License and from that point forward, you will only need that ID# on the contract package. 

2.  Buyers and their agents will be responsible for choosing competent attorney/Closers to get the closing done prior to contract expiration date.  Extensions will not be granted due to Attorney delays.  Be clear to your buyer and to their attorney that HUD works on deadlines and will not compromise those deadlines to accommodate them.   (ex: HOA and other bill payments must be requested 10 days ahead of closing,  HUD-1 Settlement statements have to be sent to the Asset Manager for approval 5 days before closing for seller approval,  If no clear title, HUD will not reimburse the cost of the title exam)

3.  Without a designated closing agent, there will be some changes to the handling of money associated with HUD transactions.   Each Asset Manager has their own procedure for Earnest money so pay close attention to who the AM is on each deal!
        PEMCO - E/M payable to CLOSING ATTORNEY but delivered to LISTING AGENT
        HOME TELOS-  E/M payable to CLOSING ATTORNEY but delivered to LISTING AGENT
        OFORI-  E/M payable to the LISTING AGENT and delivered to LISTING AGENT


This process is in effect NOW!   If you or your buyer is unsure of how to proceed with their contract package, DONT GUESS!!! CONTACT THE LISTING AGENT FOR ASSISTANCE!

Friday, March 1, 2013

2013 HUD Changes

It seems like there is always something changing when it comes to HUD owned property.  Thats okay though because the system is continuously evolving to deal with the current market conditions.   So here's the latest!

Coming soon HUD will begin a new process for handling earnest money on HUD contracts. 

HUD bids won during the Buyer Select Program  will remit the sales contract to the specific asset manager that has the contract for the property.  You will not send the Earnest Money to the Asset Manager any longer from that date forward.

Earnest money will be made payable to the closing attorney's office (no longer payable to HUD). The selling agent will have 48 hours to remit their contract package to HUD's asset mananger and the earnest money to the listing broker.   To keep confusion down, I suggest including a copy of the bid confirmation sheet with the earnest money check.  This will help insure that the money is credited to the correct file.   Once your contract has been signed off by HUD and a copy is delivered to the listing agent,  we will then transfer the money to the closing agent.   Failure to remit the earnest money payable to the closing attorney and delivered to the listing broker is grounds for cancelling your contract by HUD so make sure you follow these instructions.  

Here is why...  HUD is moving towards a "Buyer Select" closing attorney instead of insisting that all closings be handled through one contract attorney's office.   In order to do this most efficiently, Earnest money will be transmitted to whomever the buyer chooses to close the deal.    At this time, Georgia is not participating in the "Buyer Select" program but we are moving in that direction.  This will mean that until the program is in full force in Georgia, you may still choose your own attorney to close the transaction but it will be considered a  third party transaction and your buyer will be responsible for the attorney fees charged by the 3rd party attorney.   Once we are in full swing of the "Buyer Select" program,  the buyer will be able to use their seller paid closing costs towards attorney fees just as they would on other real estate transactions.

To RECAP:  EFFECTIVE Soon  you will send your certified earnest money check payable to the closing attorney to Re/Max United Attn: HUD Department 1000 Bankhead Hwy, Carrollton GA 30117.  Remember to include your bid confirmatin sheet to confirm that the check is credited to the correct file.   Also,   include the address and contact number of the closing attorney if it is one other than Fearnley Calif  (HUD's Current contract attorney)

Effective this year HUD has one Field Service Manager for the state of Georgia.   No more having to scroll through the listing to find who the FSM is to decide what to do about activating utilities fo inspections or reporting property condition issues.   It's now a one stop shop!   Our new Field Service Manager for Georgia is