HUD Purchasing procedures:

1. Properties are sold every Monday.

2. Bids must be placed no later than Sunday.

3. Winning bids will be posted by 12:00 on Mondays

4. To place a bid the following information is required:

A. Legal names of buyers purchasing the property

B. Current address and phone number

C. Social Security numbers of each buyer

D. Pre-qualification letter or proof of available funds to close

E. $1,000 check for earnest money

F. *if the bid is won: a cashiers check for a $1,0000 is required made out to HUD.

G. Contracts must be signed and sent to Dallas w/in 48 hrs. of winning the bid.

5. Closing costs:

A. HUD will pay closing costs upon request ONLY! 3% for conventional financing 5% for FHA financing

B. Closing cost usually amount to 5% of the loan amount:

1. Title policy 1% of the purchase price Lender fees:

2. 1% loan origination, and usually 1% administration Fee/ filing fee/ misc. costs 3. 2% Escrow fees: 1 yr. insurance paid in advance: And 3 month insurance and 3 months taxes paid in advance

***Paying cash: A title policy if optional: If purchased the amount of closing costs should be 1.5% of the purchase price.

EX. Purchase $100,000 …closing costs would be $1,500 w/a title policy.

Title Policy:

HUD forecloses on the properties. All liens and judgments attached to the property are wiped out upon the foreclosure. A title policy guarantees clear title to the property. So if HUD made a mistake in the foreclosure process the title company closing your purchase would be responsible for taking care of any possible future problems. Without a title policy the buyer would handle any possible future problems. **When a lender is involved in the purchase of a property a title policy is always required! Jay E. Hasbrouck / 817-996-4444