HUD Transactions & Bidding Procedures

Agents handling HUD-owned properties must follow all applicable HUD requirements, listing-agent instructions, and CRIM Realty procedures. The following requirements apply to HUD bids and transactions.

Before Submitting a HUD Bid

Before submitting a bid, the Agent must have:

• A completed and signed HUD contract package; and
  
  
• Certified earnest money funds from the Buyer in the amount required for the transaction.

Agents should verify the current HUD/PENCO or listing-agent instructions for the required earnest money amount and acceptable form of funds.

Broker Signature & Submission

Before submitting the original contract package to HUD, the Agent must bring the following to the CRIM Realty office:

• The fully executed HUD contract package; and
  
  
• The Buyer’s earnest money check made payable to HUD.

The Broker must sign the contract in the Broker’s Authorized Signature section before the Agent submits the original documents to HUD.

Individual Salespersons are not authorized to sign the contract on behalf of the Broker.

Unless otherwise instructed, original documents requiring signatures should be signed in blue ink as required by HUD or the applicable asset manager.

If the Bid Is Not Accepted

If HUD does not accept the Agent’s bid, the Agent must notify CRIM Realty immediately.

The Agent must also provide CRIM Realty with a copy of the written notification from HUD, PEMCO, or the applicable asset manager confirming that the bid was not accepted.

Earnest Money

Do Not Reuse Earnest Money Checks

Agents must not reuse a copy of an earnest money check from a previous HUD bid when submitting a new bid.

HUD must be able to determine whether the Buyer is entitled to a refund of earnest money from the prior contract and whether those funds remain associated with the original transaction. When a new bid is submitted, the new contract must be supported by the required earnest money for that new bid.

If the Buyer submits a new bid after a previous bid is unsuccessful, the Buyer must provide new earnest money as required for the new bid and separately request the return of the earnest money from the previous transaction, if applicable.

Reusing a copy of a prior earnest money check is strictly prohibited and may result in CRIM Realty being held responsible for funds that have not actually been received.

Contract Extensions & Cancellations

If a HUD transaction will not close on the scheduled closing date for any reason, the Agent must promptly submit the appropriate form to HUD/PEMCO before the original closing date.

Depending on the circumstances, the Agent must submit either:

• Contract Extension Form; or
  
  
• Contract Cancellation and Request for Earnest Money Form, signed by the Buyer.

The applicable forms and current submission instructions are available through the HUD/PEMCO resources or the applicable asset manager.

Agents are responsible for confirming that HUD/PEMCO receives the required form before the applicable deadline. Failure to meet HUD deadlines may result in cancellation of the transaction, loss of earnest money, or other consequences under the HUD contract.