Tips and Tricks for Bidding on HUD or Bank Owned Properties
It’s no secret that when making a bid on a HUD owned property and getting the contract submitted one must dot the I’s and cross the T’s. Receiving that accepted contract is exciting but there are some things that if not done property will delay closing.
I’ve compiled this list based on mistakes that I have seen made over the years and no one wants a closing delayed over a silly mistake. I hope that by sharing this with you we can all become more proficient with HUD and Bank Owned Properties.
1) Lender Approval Letter: The letter usually needs to have the names of the buyer(s) and the full subject property address or the bid may be delayed or rejected.
2) Loan Documents: Please check to see how the lender is going to require the name of the buyer to appear on the loan documents. If it is different from Line 2 of the contract in any way, you will need to request an amendment to the contract.
3) Deed of Trust: Please check to see how the lender is going to title the loan. If the buyer is legally married but the spouse is not on the loan the non-purchasing spouse will be listed on and will sign the Deed of Trust. The seller is most cases aren’t aware of this simply from the sales contract.
4) Surveys: These are rarely provided and will be ordered by either the Lender or the Closing Agent at the buyer’s expense.
When you receive the accepted bid and contract package please forward to the Lender ASAP since now the clock is running – the closing agent can require up to 8 business days with the lender documents before scheduling a closing.
All closing are different and we make every effort to help the transaction run as smoothly as possible. If there is anything else my team of I can do please do not hesitate to call upon us. Hopefully these tips and tricks for a successful closing of a HUD owned property will be useful to you in your next transaction!