Las Vegas Real Estate Career

Overview of the HUD Bid Process and Links to HUD Resources

Jan O'Brien — Sun, 19 Apr 2009 15:04:42 +0000

Here is an overview of the Nevada HUD Home bid process and resources:

HUD properties can be found in the MLS or http://www.mcbreo.com/st_nvmain.htm . We are also posting a current list in PDF format on www.americanagroup.com. The new list is published every Friday.
Buyers must use a licensed real estate agent to submit HUD bids.
Real estate brokers must be registered with HUD and be issued an NAID number in order to submit valid bids. You can check to see if your NAID # is current or your broker can register at MCBREO.com.
All HUD homes are on a Master key not on lockbox. Las Vegas Real estate agents can purchase a HUD key for $3 with a valid NAID # and your business card at any Prudential Americana office.
All bids are submitted electronically directly on the MCBREO website and are considered simultaneous bids. You must have the complete contract and all disclosures completed and signed by the buyer prior to submitting the bid.
When properties first come on the list, there is a 10 day period reserved for owner occupant offers only. Properties will open up to investors on the 11th day if there has not been an acceptable offer to HUD. Daily bids are open to all bidders/purchasers.
All the necessary Forms and Addenda are located at MCBREO.
Also, get the Broker Handbook: A Guide to Selling HUD Homes for step-by-step instructions on the entire process and how to complete the forms.
- Or download it right here: Download broker_handbook_updated1015.pdf

Make sure you review the Bid Results and Statistics area of the website for useful information to assist you with educating the buyer.
Remember the highest net to HUD is the winning bid - basically the offer price less any requested closing costs and commission (HUD will pay a commission up to 5% of sales price).
Check out the comprehensive HUD.gov site for extensive and useful information.

If you are an interested buyer, just give me a call (702-858-9191 or jan@janobrien.com) and I will be happy to refer you to an experienced real estate agent who can assist you.

About HUD Homes - Agents Earn up to 5% Commission

Jan O'Brien — Sun, 19 Apr 2009 14:28:17 +0000

Buying a HUD home in Nevada is definitely another investment and primary residence alternative. The active property list as of 4-10-09 had 59 available properties including manufactured homes, condos and single family residences. There have been few HUD homes available in recent years due to the high percentage of conventional loans. With the trend in financing switching back to FHA loans (31% of all Las Vegas closings in March 2009 were FHA), expect to see the number of HUD homes available to increase. Real Estate agents can earn a commission up to 5% of the offer price.

What is a HUD Home?

When a homeowner with a Federal Housing Administration (FHA) insured mortgage can’t meet the payments, the lender forecloses on the home; FHA pays the lender what is owed; and then the United States Department of Housing and Urban Development (HUD) takes ownership of the home. Then HUD sells it at market value as quickly as possible. Michaelson, Connor & Boul, Inc. (MCB) is a Marketing and Management contractor for HUD (1 to 4 unit residential properties). MCB contracts with listing brokers around the country to assist in the marketing and listing of these properties through the local Multiple Listing Services.

Prudential Americana Group, Realtors is a Local Listing Broker for HUD homes with HUD Registered Real Estate Agents. Our sales executives are trained and experienced with the nuances and requirements for submitting offers to purchase to HUD.

You can download a current list of all available HUD Homes on our Buy HUD Homes webpage.

Access to the Property
Perspective purchasers MUST be accompanied by a broker or agent when viewing any HUD home listed for sale. Buyers may not enter a house without their broker/agent for any reason prior to closing. Brokers and/or agents must accompany any individual performing services such as home inspections, appraisals, or certifications. Keys are not permitted to be lent to any other individuals associated with any sales transactions.

Who can Purchase a HUD Home?
Any individual who can qualify for a mortgage or who can pay cash may purchase a HUD home. Purchasers must use a broker or agent who is registered with HUD to place a bid on a property. Purchasers must also have a pre-qualification letter from a lender or proof of cash funds in the amount of or greater than the property they are purchasing.

How are HUD Homes Sold?
All HUD Homes are listed on our website at their “AS-IS” fair market value. Purchasers must obtain the services of a HUD Registered Real Estate Agent. Agents may submit bids on HUD properties on behalf of their buyers. The bid that meets the acceptable threshold and has the highest net to HUD receives a provisional bid acceptance subject to receipt of all required documents. Once a bid is accepted an original Sales Contract Package must be submitted to MCB with 48 hours.

How is Fair Market Value determined?
Fair Market Value is determined by a licensed FHA appraiser. Copies of the FHA appraisal are available to the lender by request after a property is under contract. If a property is exposed to the market without any acceptable offers then a reduction of the listed price may occur.

Does HUD make any repairs to the property?
No. All HUD properties are sold in their “AS-IS” condition. There are no representations or warranties, expressed or implied, on any HUD property. HUD does not guarantee the condition of any property, FHA-insurable or not, nor whether it meets local codes or zoning requirements. Purchasers are advised that there may be code and/or zoning violations on these properties and that it is the responsibility of the purchaser to identify these violations. Buyers are very strongly encouraged to have homes inspected by a qualified home inspection company to satisfy themselves as to the condition of the property at the time of sale.

New Prudential National TV Commercial Launched

Jan O'Brien — Sat, 11 Apr 2009 23:19:30 +0000

Prudential launched a new TV spot at the end of March. In the 30-second commercial, a couple is deciding on with whom to list their home. After learning the advantages of listing with a Prudential Real Estate sales professionals, there is only one choice. The commercial highlights our J.D. Power and Associates recognition, as well as our differentiating Online Seller Advantage^SM technology. The ad will run on major cable channels through June.

American Recovery and Reinvestment Act; Housing Stability Plan - Resources for REALTORS

Jan O'Brien — Sat, 28 Feb 2009 20:30:28 +0000

Here are some links to various resources concerning the Stimulus Plan, the American Recovery and Reinvestment Act of 2009, the Homeowner Affordability and Stability Plan.

If you want to recommend any other useful resources to add to this post - just post your comment and link!

NAR’s resource page - Unlock America’s Economy (Links to articles, NAR President’s Podast series, and other good information to keep you informed and updated)

Recovery.gov Stay informed about how and where the money is being distributed from the recently passes American Recovery and Reinvestment Act. Visit the site for timelines, graphics, charts and updates The President has promised Accountability and Transparency…

FinancialStability.gov Quick links to press releases, webcasts, fact sheets

Emergency Economic Stability Act - US Treasury site

HUD.gov - HUD site packed with info and resources

The White House website and blogs:

First Time Home Buyers $8000 Tax Credit Explained

Jan O'Brien — Sat, 28 Feb 2009 18:15:57 +0000

Are you up to date with the latest modifcations to the First Time Home Buyer Tax Credit of $8,000? Here are some resources to help explain the specifics. Make sure to download the documents from NAR to use with your clients…. Excellent Newsletter material!

In a nutshell:

Changes the 2008 $7500, repayable credit to $8000 and no repayment (tax credit - “refundable”)
Good for purchases of principal residence on or after January 1 to December 1, 2009
Only first-time home buyers are eligible (defined as anyone who has not had any home ownership in 3 years prior to day of 2009 purchase)
Income restriction - individuals earning up to $75,000 and married couples who file joint return no more than $150,000
There is a reduced credit which totally phases out for individuals at $95,000 annual income and $170,000 (joint return)

Attorney Darren Welsh has an informative post on his legal blog regarding the first time home buyers credit of $8,000 which was modified as part of the recently passed legislation “American Recovery and Reinvestment Act of 2009″. Las Vegas accountant, Diane Clough explains the tax credit… read more….. TGIF Legal Tip: First Time Buyer $8,000 Tax Credit

Here’s more on the home buyer tax credit from NAR:

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Download HomeBuyers_Tax_Credit - NAR Presentation

Download HomeBuyer_tax_cred_qa - FAQ from NAR

FHA Loan Limit Increased to $400,000 for Clark County, NV

Jan O'Brien — Thu, 26 Feb 2009 04:02:42 +0000

Some positive news today - the FHA loan limit was increased to $400,000 in Clark County (Las Vegas). This means buyers looking for homes up to $412,000 can now qualify with as little as 3.5% down payment. Visit the FHA Mortgage Limits page to check the loan limits for any county/state.

Las Vegas Predicted to Lead the Country Out of the Housing Crisis

Jan O'Brien — Wed, 25 Feb 2009 03:56:41 +0000

Kathryn Bovard wrote an excellent post yesterday on her Zen Real Estate blog, reporting on NAR’s chief economist Dr. Lawrence Yun’s prediction that Las Vegas would lead the country out of the housing crisis.

Dr. Yun cited to key reasons…
1.The Las Vegas home prices are under market and
2. The Stimulus Plan

Read Kathryn’s full post for more..
Today Chief Economist Predicts Las Vegas Real Estate Market to Lead the Nation Out of Housing Crisis

Kathryn is the Broker-Manager for our West Sahara Office. Contact Kathryn at 362-1111 or kathrynb@americanagrp.com

Prudential Americana Provides a Full Website Solution for all Lead Agents

Jan O'Brien — Mon, 23 Feb 2009 15:00:43 +0000

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President Obama Unveils $75 Million Plan to Stem Foreclosures

Jan O'Brien — Mon, 23 Feb 2009 01:17:22 +0000

President Obama unveiled his $75 Billion plan to stem the foreclosure crisis in the country. The “Homeowner Affordability and Stability” plan proposes to help between 7-9 million families restructure & refinance their mortgages to avoid foreclosure.

Highlights of President Obama’s plan to reduce mortgage foreclosures:

Allow an estimated 4 million to 5 million currently ineligible homeowners who get their mortgages through Fannie Mae or Freddie Mac to refinance at lower rates.
Create incentives for lenders to work with borrowers to modify the terms of subprime loans at risk of default and foreclosure.
Take “major steps” to keep mortgage rates low for millions of middle-class families seeking new mortgages.
Pursue reforms designed to help families avoid foreclosure, including allowing bankruptcy judges to reduce mortgages on primary residences to their fair market value.

Who benefits from the plan?

Homeowners on the verge of becoming delinquent or those who have missed a few payments are the prime candidates for assistance.

The plan calls for lenders to reduce monthly interest payments to 38 percent of the mortgage holder’s income. Then, the government would step in with funding to help reduce payments to 31 percent of the individual’s income.

Another key part of the administration’s plan enables lenders, with the assistance of the Treasury Department, to reduce monthly payments by lowering the principal due on the mortgage.

Links to articles and blog posts about the President’s Housing Plan:

Obama Housing Plan: Live Blogging Summary Trulia Blog
President Barack Obama Foreclosure Speech - $75 Billion Housing Plan Full Text of Speech
The Obama Housing Fix: 5 Things to Know US News & World Report
Housing plan leaves out critical pieces Politico.com
Q&A: Foreclosure Plan Won’t Help Everyone NPR News

New York Times - Graphic explaining the key points is excerpted below…

Removing a limit on refinancing for “responsible homeowners”

4 million to 5 million households.

The bill will remove the current restriction on Fannie Mae and Freddie Mac that prohibits them from guaranteeing refinancing on mortgages valued at more than 80% of the home’s value. This will allow many more homeowners to refinance at lower rates.

Who may qualify

Example
Today A family’s home value drops to $400,000 from $475,000. The loan balance at $337,460 is now more than 80 percent of the home’s value, making it difficult to refinance under current rules.
Under the proposal The family can refinance to a rate of 5.16% from 6.50%, which would save $331 a month and $3,968 a year.

Who doesn’t qualify

Those holding loans not owned or guaranteed by Fannie Mae or Freddie Mac.
Mortgages above a certain threshold — $417,000 for single-family homes in most areas and $729,000 in higher-priced regions.
Those whose outstanding mortgage debt exceeds 105% of their current home value.

Although this is a step in the right direction, it does not begin to help so many homeowners in the Las Vegas Real Estate Market who have continued to be responsible and do the right thing by continuing to pay their mortgage….in spite of the fact that housing prices and equity have declined so drastically. In fact, finding a local homeowner who only has an outstanding mortgage debt that is less than 105 % of their current home value would be an exception to the rule.

Helping renegotiate loan terms for “at-risk homeowners”

3 million to 4 million households.

The bill creates incentives for lenders to modify the terms of subprime and other loans. Participating lenders will reduce payments to no more than 38% of borrower’s income, with the government matching further reductions down to 31%.

Who may qualify

Example
Today A family’s home value has fallen to $189,000 from $230,000 and its loan balance is $214,016. Job loss has reduced household income and loan payments can’t be made.
Under the proposal The family could modify the mortgage for five years, so that payments are manageable. This would save $406 a month or $4,870 a year.

Who doesn’t qualify

Mortgages above a certain threshold — $417,000 for single-family homes in most areas and $729,000 in higher-priced regions.
Homes that are not owner-occupied.
Those who apply more than three years after program’s start.

From The White House blog:

Questions and Answers for Borrowers about the Homeowner Affordability and Stability Plan

Homeowner Affordability and Stability Plan Executive Summary (PDF)

Download HousingExampleSheet (PDF)

Leads, Leads, Leads for Prudential Americana Group agents

Jan O'Brien — Mon, 23 Feb 2009 00:41:58 +0000

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