Real Estate Pro Articles
   
Real Estate Pro Articles Author Photo    

Three Most Common Mistakes When Filling Out The HUD 9548 Contract



[Valid RSS feed]  Category Rss Feed - http://www.realestateproarticles.com/rss.php?rss=279
By : Len Dietrich    99 or more times read
Often when an agent is selling a hud home they don't appreciate there are completely different contracts to fill out. When getting started as a real estate agent knowing this is essential in advising your client with the most productive contract review process. HUD has specific contracts that are unique to your state standard forms.

Many agents do not realize this. Often times agents send in their state mandated forms to the listing agent for that property when, in fact, all the bidding for HUD homes is done on line. After an accepted offer those contracts are executed and then sent to the marketing and management contractor assigned to that listing. So, this is different all together. The listing agent doesn't receive the offers the marketing and management company is in charge of reviewing the contracts once an offer has been accepted. There is no real estate academy that has tutorials on line or in the classroom for hud deals.

How Will Your Client Be Taking Title? Line Item #2 on the Housing And Urban Development form asks for how your client will be holding title. While in the past this often could be left clear until your buyer decides, this has changed and the best procedure is to analyze this with your buyer before submitting your offer and enter in to the contract how they'll be holding title. Common ways of holding title can be found by faxing your local title association.

Repair Escrows On Line Item #4. This is a commonly unpopular area. Most realtors expect this is the total cost of escrow but it has nothing to do with the "escrow" at all. I'll make it simple. If using FHA financing you'll need to ascertain the HUDHomeStore website to see if the home you are bidding on requires a repair escrow. Repair escrows are called for when using FHA lending. Any repairs mandated under $5000 require a 203b repair escrow. Any repairs called for over $5000 are a 203k repair escrow. If you aren't using FHA lending then the 203b or 203k area doesn't apply. ONLY if you are using FHA financial support, you need to fill this section out. Even if the property has a repair escrow on it and you are using non-FHA financing then you need not worry about this section. Check the box "seller is paying cash or applying for conventional or financing not involving FHA" and begin.

Earnest Money Procedures on Line Item #12. This line is relevant to the processes and rights HUD retains to your EMD when your buyer fails to perform. The most misunderstood part is that there are two lines on which authorize initials and those lines are parallel to one another. Usually, if there are matched purchasers on the form, an agent will have one client initial one and the other on the following line to the right. Wrong. Confusing for sure. Correct, no. One is a "buyers initials" line and the other is authorized for HUD's "authorized agent". Put both of your buyers initials on the first line reserved for "purchaser".
Real estate is changing in to a social media MONSTER and getting started as a real estate agent or becoming a better one has never been more difficult. Find how getting started as a real estate agent can be easier along with thereal estate tutorials by visiting our site where we will provide a real estate one-stop-shop with reviews and recommendations for all the tools you will need to improve your real estate endeavors.

Related Articles



Actions
Print This Article
Add To Favorites



Sponsors



 

 

© All rights reserved to Real Estate Pro Articles