How to bid on a Homepath or HUD home

9 Replies

Hi I need some advice on how to bid on a HomePath or HUD home.

I read that I would need to use a HUD-registered selling broker in order to bid on homes listed the hudhomestore.com site. Does this mean that I don't need a buyer's agent or does this mean that the selling broker is functioning as the seller's agent and I should still contact a buyer's agent?

Also, I didn't see any similar requirements on the Homepath.com site.  Does that mean that I can bid directly on homepath homes myself?  Also, if I plan to flip the home, do I still need to take the Homepath Ready Buyer course?

Thanks (DC, Maryland, VA)

"Selling" agent = buyer agent. "Seller's" agent represents the seller. Unless you know real estate transactions, hire someone who has HUD experience.

I purchased a HUD home and my agent was not registered so could not represent me but they did give him a 1.5% referral fee.

@Kimberly Green

You'll need a licensed agent to represent you in either transaction. You can not bid on the homes yourself. 

If you're buying as an investor, the FirstLook period has to have ended on Fannie Mae properties, and you would not need to take the homebuyer course.

Mark Gallagher, Real Estate Agent in New Jersey (#1221341) and Pennsylvania (#RS314542)
215-490-4851

You need both a HUD-registered agent and title company for the HUD process. HUD will pay both buyer's agent and seller's agent commissions but no other closing costs on sales to investors.

@Kimberly Green - You do not have to do any training to purchase a HUD/Homepath house. Your agent can put in an offer with the selling agent. The selling agent is HUD approved and will be able to place the bid.

I know that homepath has a 6 month title seasoning clause in their contracts. You will not be able to sell the home for a profit within the first six months. Both HUD and Homepath also have First Look periods for O/O's. Make sure that you are not bidding during the O/O period if you are an investor.

I would urge someone to work with a HUD approved agent to place bids as opposed to have an agent refer you to the listing agent. The timeline and paperwork involved just requires more attention to detail

An investor can add in 3% for closing costs on a HUD property. Keep in mind that the only number important to HUD in the net bid

The FNMA requirement is 90 days and not 6 months

512-293-3885
Originally posted by @Greg H. :

I would urge someone to work with a HUD approved agent to place bids as opposed to have an agent refer you to the listing agent. The timeline and paperwork involved just requires more attention to detail

An investor can add in 3% for closing costs on a HUD property. Keep in mind that the only number important to HUD in the net bid

The FNMA requirement is 90 days and not 6 months

I just signed an offer for a FNMA, which clearly stated 6 months - maybe its different in TX?? 

@Greg H. - I stand corrected - it is 3 months....

Thanks everyone for the great info. I've started working with a realtor that's familiar with HUD and Homepath because as some of you stated the process is pretty long and involved. I'll update the thread with the my results.

Thanks again.

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