Professional Documents
Culture Documents
Presented By
www.oforireo.com
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This presentation is being conducted by Ofori & Associates, REO and is intended for sole use of the Ofori Neighborhood Listing Broker network. The intended users are Ofori & Associates personnel and approved real estate listing brokers and sales agents in the Ofori Neighborhood Listing Broker network. Information in this presentation is subject to change at any time by the Ofori Quality Control staff.
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Presentation Format
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Questions will be answered midway and at the end of the presentation. To ask a question, click the Ask Question button on your screen. For Audio/Technology questions, click on the Help button.
Supporting Material
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Highlights of M&M III Changes Where HUD Properties Come From & Where to Find Them Who Can Buy and Sell a HUD Home Roles & Responsibilities of an Ofori Neighborhood Listing Broker (NLB) Broker Registration Process HUDHomestore.com Bidding Process Preparing & Submitting the Contract The Closing Process
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Separate contractors responsible for property management and marketing/sales One web site for everything - HUDHomestore.com New Broker registration process New Commissions (up to 3% each) 50/50 Split for Listing Broker and Selling Agent
Exclusive owner occupant bid period changes Earnest money submitted with the contract
HUD HOCS
Asset Managers
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Performs a variety of pre and post conveyance services to protect HUD s interests. Reviews the title package to ensure that the title is clear of any known encumbrances.
Contractors that provide property maintenance and preservation services such as:
Perform Initial Cleaning Conduct Inspections Secure Properties Conduct Routine Maintenance and Repairs
Contact to activate utilities
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Markets and sells HUD properties Selects Neighborhood Listing Brokers and assigns Listings Reviews all bids submitted through HUDHomestore.com Serves as your main contact in every HUD sale
Newest Asset Management Contractor selected by HUD to market and sell its single-family homes. Ofori & Associates, PC is the parent company of Ofori & Associates, REO Ofori & Associates, PC was established in 1991as a CPA and management consulting firm in Washington, DC. Offers a full scope of accounting, auditing, financial, computer design and automation support services to a wide range of clients.
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Atlanta, GA
For Contract Areas 1A & 2A
Hartford, CT
For Contract Areas 2P & 3P
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Ofori Contract Areas Include: 1A, 2A, 2P, and 3P Total: 25 States, plus Puerto Rico and USVI
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A HUD-owned property. . .
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had a FHA insured loan, was foreclosed by the lender, lender transferred ownership to HUD in return for payment of the insurance claim.
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www.oforireo.com
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Listings & Bids Property Listings & Bid Results Click on State Search by city, zip code or Property Case Number
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You can click on the state or use the Search function to locate HUD homes.
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Myth: HUD Homes are low-end housing. Fact: HUD homes are available in a variety neighborhoods, condition and prices ranges. Myth: HUD Homes are not worth the low-end housing. Fact: HUD homes are offered at fair market value based on a recent appraisal. Myth: HUD will pay for you to totally remodel and update your HUD Home. Fact: HUD Homes are
SOLD AS-IS
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HUD does not make or offer warranties or guarantees on a property. HUD will not make any repairs to the property after the property has been deemed safe secure and marketable. Buyers are strongly encouraged to get independent home inspections.
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Owner Occupants
q Given priority during certain bid cycles q Must occupy the house for 1 year q Cannot participate in future HUD sales for 2 years
Investors
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Government Agencies & HUD Approved Non-Profits q Programs designed to stabilize and revitalize communities by offering special incentives to home buyers. q The Good Neighbor Next Door (GNND) program offers firefighters, EMTs, police officers and teachers significant discounts for purchasing homes in in designated revitalization areas.
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HUD offers 50% discount off of the list price to eligible buyers. Buyer cannot own another home for one year after closing. Buyer must occupy home as primary residence for a period of 3 years. Eligible participants must work in the same area as the location of the home. Properties must be located in HUD designated revitalization areas.
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Buyer must bid 100% of the list price. Can utilize any type of financing or cash deal. When using FHA Buyer must qualify for entire contract amount prior to discount Can finance into mortgage all reasonable and customary closing costs HUD will not pay any closing costs or real estate commissions.
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Special incentive program to sell HUD foreclosed homes for owner-occupants only. Available to owner-occupants who qualify for FHA financing. Property does not have to be in a revitalization area Buyer must live in the home as primary residence. Excellent program for first-time homebuyers.
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Market and sell Ofori property listings; Real estate professionals who know the communities they serve well; Act as Ofori representatives in the community; and Partner with our Outreach Marketing Team to organize and present community outreach programs.
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Extensive knowledge of the neighborhood of the listed homes An office in close proximity to the listed home.
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Close Proximity within subdivision and/or up to one mile depending on market (i.e., urban, rural, etc.) Recently Sold within 6 months or within 90 days for declining market.
Adjustments
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For a full description of Ofori NLB Roles and Responsibilities and Scope of Work, go to www.oforireo.com and click Brokers tab.
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Go to www.oforireo.com Click on Brokers tab. - Click on Neighborhood Listing Brokers for registration link. Read the instructions. Complete the forms. Send to Ofori. Can take up to 30 days to process.
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Note: Currently not accepting new NLB applications, however this is how the process works . . .
Go to www.oforireo.com Click on Brokers tab. - Click on Neighborhood Listing Brokers for registration link. Read the instructions. Complete the forms. Send to Ofori. Can take up to 30 days to process.
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You must have a NAID in order to submit bids. Allow sufficient time to process your NAID application; it could take 4-6 weeks.
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IE
UI
Uninsurable
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Any licensed real estate agent can show any available HUD property.
HUD properties and hold open houses. However you must first gain approval from the appropriate Asset Manager to do so. All brokers and agents must adhere to advertising and showing guidelines. Non-compliance could result in your brokerage s NAID number being suspended!
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All agents must sign-in when showing a property. All advertising should be done in a professional ethical manner. q Do not destroy, damage or remove the advertising signage of another HUD-registered selling or listing agent on a HUD property. Do not false advertise by implying that you or your company is HUD or a division of a Government entity.
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Do not refer to HUD properties in a negative manner (i.e., Distressed , Foreclosed , Must Sell , or Repossessed ). Acceptable References to HUD Homes include HUD-Owned , HUD Acquired or For Sale Only an Ofori NLB can place signage in an Ofori property s yard.
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Do not refer to HUD properties in a negative manner (i.e., Distressed , Foreclosed , Must Sell , or Repossessed ). Acceptable References to HUD Homes include HUD-Owned , HUD Acquired or For Sale Only an Ofori NLB can place signage in an Ofori property s yard.
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HUD Homes can be purchased by any qualified buyer. Decisions are not based on: race, color, religion, national origin, gender, handicap (mental or physical), sexual orientation, familial status or disability. Always adhere to federal, state, county city and real estate commission advertising regulations as well as the Truth in Lending Act when advertising HUD listings.
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Q&A
www.oforireo.com | 877.331.4391
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Go to www.hudhomestore.com Print the confirmation page. Ensure that the information on the bid sheet matches what is entered on the contract.
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Earnest Money
How much $$ is needed?
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$500 if sales price is $50,000 or less $1,000 if sales price is over $50,000 50% of Listing Price for vacant lots Earnest Money forfeited or refunded in whole or part for failure to close.
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Earnest Money
(Cont d)
Funds are to be submitted with the contract. Funds need to be in the form of a cashiers check, certified check or money order made payable to: HUD
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IMMEDIATELY Notify Ofori when a deal falls apart! NEVER allow anyone to perform any work of any kind before closing! DO NOT give a HUD key to prospective purchasers or inspectors.
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Go to: www.hudhomestore.com
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- If your bid is listed in Bid Results , Ofori must receive the completed contract and all addenda within 2 business days of the announcement.
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DO NOT BE LATE!
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THE CONTRACT
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The Contract
John Doe and Mary Doe 123 Main Street, Any City, Lake County, State
123-123456
John Doe and Mary Doe 1,000 X 97,000 HUD or Closing Agent Payable to HUD 3,000 X 360
100,000
3,000
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55-5555555
XYZRLTY5555 555-222-5555
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Review your contract package to ensure everything is correct before submitting it. Feel free to contact the NLB assigned to the property to ask questions you may have before sending in your contract package. The role of an Ofori NLB is the help ensure that contracts get submitted correctly the first time.
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www.oforireo.com
Sales Contract Forms fillable in PDF format Most required Addenda
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Atlanta, GA
For Contract Areas 1A & 2A
Hartford, CT
For Contract Areas 2P & 3P
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DON T PANIC!
GET YOUR TRACKING NUMBER AND CALL OFORI BEFORE THE DEADLINE!!!
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Ofori sends a letter with the contract indicating who the Closing Agent will be.
OFORI, as HUD s representative, keeps the original. A copy is sent to the Sales Agent. A copy is sent to the NLB to add info. to MLS. A copy is sent to the Closing Agent.
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Don t Ask Closing Agents to do what they are not supposed to do!
Closing Agents are under contract with HUD, with contractual obligations and restrictions. Don t ask to change names, extend closing dates, etc. without documentation and Ofori approval.
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Contact your local Ofori office for specific requirements. Write Amendment on the top of the contract (9548) or addendum: - state what the contract currently says, - state the requested changes, also - include the phrase All other terms to remain the same. The document MUST be signed by everyone involved in the transaction (i.e., Broker, Agent, ALL Buyers, etc.)
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Send the document with the proposed changes to Ofori. Ofori will: 1. Review the request, 2. Sign the document, if approved, and 3. Send copies to both the Broker and the Closing Agent
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Closing Timeframe
All sales are expected to close within
(For all contracts in 2P and 3P)
45 days
Extension Requests
Send to Closing Agent . . .
The Request For Extension of Closing Date form The appropriate documentation The Closing Extension Fee
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On Day 46
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Effective April 1, 2011 HUD is offering a broker bonus to selling brokers for properties that close in: 30 calendar days of the date the Sales Contract is executed for properties in Georgia 40 calendar days of the date the Sales Contract is executed for properties in Illinois and Indiana. $500 Bonus $750 Bonus for Sales Price Between for Sales Price Between $25,000 and $75,000 $75,001 and $150,000 $1,000 Bonus for Sales Price of $150,001 and Above
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The following conditions must be met in order to receive the broker bonus: Preliminary bid must be submitted on or after April 1, 2011 A loan or commitment letter from lender must be submitted with the sales contract if purchase is to be mortgaged, or if paying cash, a certification letter from a financial institution stating sufficient funds are available to complete the sale. The words Broker Bonus must be written or typed at the top of the signed Sales Contract. The selling broker must complete and sign the HUD Notification regarding the broker bonus sales initiative.
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Contact the FSM prior to doing inspections. Encourage homebuyer to get an independent home inspection within first 15 days after contract ratified.
Check our web site REGULARLY for news and important messages.
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Ofori & Associates, REO Thank you for being here! We look forward to working with YOU!
www.oforireo.com | 877.331.4391
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Q&A
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