James Artzner, HUD Authorized Broker Kernersville, Winston Salem, Greensboro, High Point Real Estate

Buyer Information

Buyer Information 


HUD REO Homes are sold "AS-IS" without warranty.

Irregularities in bids:

HUD reserves the right to waive any irregularity in any bid, reject and and all offers, and to withdraw a property prior to the bid opening.

Code and Zoning violations:

Brokers should advise Buyers that the properties may contain code and/or zoning violations. Code and Zoning status must be determined by the Buyer.

Property Condition:

No guaranties and/or warranties are made. No repairs will be performed by HUD after closing. Buyers are encouraged to have the properties inspected by a qualified home inspection service company to satisfy themselves as to the condition of the property.

Potential Buyers:

Contact a HUD Approved Broker (like me Jim Artzner) to obtain a copy of the current listings, to visit listed homes or to make an offer.

HUD pays closing cost up to 3% of the purchase price, if inserted on line 5 of the HUD Sales Contract when the electronic bid is submitted.

Listing Codes

IN - Insurable:

All properties listed a "INSURABLE" are eligible for FHA financing. All requests for insurance will be under Section 203(b) of the National Housing Act Program. An interest rate will be charged on the loan and is negotiable between the buyer and the lender. The mortgage may include some mortgage insurance payments.

IE - Insurable with Escrow Repairs:

Properties listed as "INSURABLE WITH ESCROW REPAIRS" means that certain repairs (not to exceed $5,000.00) are required to meet Minimum Property Standards for an FHA mortgage. These properties can qualify for FHA Section 203(b) mortgages if the buyer and lender establish a repair escrow at the time of closing for the completion of repairs within 90-days of the closing.

UI - Uninsured:

Properties listed a "UNINSURED" means that certain repairs and or improvements are required to be eligible for an FHA 203(k) mortgage. The required repairs on most of these properties exceed $5,000.00. Buyers of these properties have the option to purchase "AS-IS" with cash or conventional financing. These properties are also eligible for an FHA 203(k) mortgage if the required repairs and or improvements are completed within 90-days of the closing.


HUD Approved Brokers (like Jim Artzner) will show properties, prepare and complete contracts and submit bids through Internet Electronic Bidding at the HUD Listings website.

New listings are posted daily.

During the Exclusive Listing Period, bids may be submitted for Owner Occupant buyers only, which HUD defines as owner-occupant buyers, qualified nonprofit organizations and government entities.

There will be:

  • a thirty (30) day Exclusive Listing Period for Owner Occupant buyers for properties listed as Insurable and Insurable with Escrow Repairs.

  • a five (5) day Exclusive Listing period for Owner Occupant buyers for properties listed as Uninsured.

Exclusive Listing Period (Owner Occupant Priority).

  • For Insurable and Insurable With Escrow properties, bids shall be opened and reviewed on the Tenth (10th) day of the Exclusive Listing Period. All bids will be treated as having been received simultaneously. If no winning bid is received by the Tenth (10th) day, bids shall be opened and reviewed on each day after the tenth (10th) day up tothe thirtieth (30th) day or until a winning bid is received. If no winning bid is received in the thirty (30) day period, the listing shall be ectended to all buyers. See Extended Listing Period below.
  • For Uninsurable properties, bids shall be opened and reviewed on the sixth (6th) day. All bids willl be treated as having been received simultaneously. If no acceptable Owner Occupant net bid is received, the listing shall be extended to all buyers. See Extended Listing Period below.

Extended Listing Period.

At the conclusion of the Exclusive Listing period, should a property remain unsold, all general public bids (including Investors) may be submitted daily.

Bid Opening, Review and Results

In order to be valid for bid opening on a specific day, bids must be completed and confirmed on the Internet nolater than 11:59 p.m. on the previous day.

Bids received on the same dayy shall be considered to have been received simultaneously. Friday, Saturday and Sunday bids will be considered to have been received simultaneously and will be reviewed simultaneously on the following Monday.

Bids will be opened and reviewed each business day.

The highest acceptable net bid to HUD will be selected.

Results will be posted each business day by 1:00 p.m.

Brokers must check the HUD Listings website on a daily basis for available properties and Bid Result Publication. If your bid is selected, your Broker must submit the original written and completed HUD Sales Contract along with the required Addenda to the appropriate AM Contractor office within the next 48 hours of Bid Result Publication otherwise the bid will be considered canceled and the second highest acceptable net bid to HUD will be considered.

To be acceptable, hard copies must contain no errors and signed in BLUE ink.

If you search for a property and it does not show up in the search properties area then that property has an acceptable bid at this time.

Required Contract Documents


  • Fillable HUD Sales Contract Form 9548 Revision (1/99)

Attach the following Addenda:

  • Lead Paint Addendum, if the property was built prior to 1978. The Lead based Paint Addendum is property specific and will be posted with the property listing.
  • General Addendum to HUD Sales Contract
  • For Your Protection: Get a Home Inspection
  • Notice to Purchaser Addendum when the offered amount exceeds the appraised value at the time the offer is submitted
  • Certification of Owner-Occupant, if purchaser is an owner-occupant
  • Radon Gas and Mold Notice and Release Agreement
  • Letter from a Financial Institution acknowleding that the buyer has funds available for the down payment
  • Mortage Pre-Qualification Letter from a lending institution, if the purchase is to be mortgaged, stating that an in-house credit check has been performed and the buyer has been pre-qualifiedfor a mortgage up to a specified mortgage amount
  • Certification from a Financial Institution, if the purchase is cash, stating that funds are available on the day of closing
  • Certification of Owner-Occupant Status for Cash Buyers: All bids by owner-occupants, who are purchasing properties listed in the owner-occupant category, must include an Owner-Occupant Certification. Sanctions will be immediately imposed upon Brokers, Agents and Investors found to be abusing the system

 Down Payment

Owner Occupants Only:

3.5% Minimum Down payment for FHA financed properties.

Maximum mortgage amount 96.5% of the appraised value or sales price whichever is lower.


1 unit: 25% Minimum Down payment, for FHA financed properties;

2 to 4 units: 15% Minimum Down payment, or FHA financed properties.

Earnest Money Deposit

Required Earnest Money: Must be in the form of a cashier's check, money order, or other certified funds. The original Earnest Money check should be submitted with the sales contract after bid acceptance. The Earnest Money deposit will be sent to the Closing Agent after contract execution.

  • $1,000.00 for offers greater than $50,000.00
  • $500.00 for offers $50,000.00 or less
  • 50% of the Listing Price for Vacant Lots

Earnest Money Forfeiture and/or Return

The following provisions are applicable in all instances except those where HUD in unable or unwilling to close the sale, in which case the entire amount will be returned.

Investor Buyers:

  • Uninsured Sales: 100% of the deposit will be forfeited to HUD for failuire to close, regardless of the reason.
  • Insured Sales:
    • 50% of the deposit will be forfeited to HUD for failure to close if the buyer is determined by HUD to be an unacceptable buyer
    • 100% of the deposit will be forfeited to HUD if the sal fails to close for any other reason.

Owner-Occupant Buyers:

Return 100% of the deposit when:

  • There has been a death in the immediate family (buyer, spouse or children living in the same household).

  • There has been a recent seroius illness in the immediate family that has resulted is significant medical expenses or substantial loss of income, thus adversely, affecting the buyers financial ability to close the sale

  • There has been a loss of job by one of the primary breadwinners, or a substantial loss ofincome through no fault of the buyer

  • For an FHA insured sale, HUD determines that the buyer is not an acceptable borrower. For an uninsured sale, the buyer was pre-approved for mortgage financing in an appropriate amount by a recognized lender and, despite good faith efforts, is unable to obtain mortgage financing. "Pre-approved" means a commitment has been obtained from a recognized mortgage lender for mortgage financing in a specified dollar amount sufficient to purchase the property.

  • There is other equally good cause, as determined by the AM Contractor, in keeping with the spirit and intent of the above policy.

Return 50% of the deposit when:

For an uninsured sale, despite good faith efforts by the buyer, there is an inability to obtain a mortgage loan from a recognized mortgage lender.

Forfeit 100% of the deposit when:

  • No documentation is submitted.
  • Documentation fails to provide an acceptable cause for the buyer's failure to close.
  • Documentation is not provided within a reasonable time following contract cancellation.

Vacant Lot Sales:

The buyer is considered to be an Investor and instructions pertaining to Investors will apply.

Closing Costs:

HUD pays certain Closing Costs up to 3% of the purchase price, IF inserted on line 5 of the sales contract when the electronic bid is submitted.

Closing Time Frame:

All buyers must close on or before forty five (45) days of contract acceptance date.

Closing Extension Policy:


Closing Extension request: If the closing does not occure on the specified date on line 9 of the HUD Sales Contract 9548, the Broker should contact HUD's Closing Agent at least two weeks prior to that date to request an extension.

AM Contractors, as HUD's Representative, may grant an extension of closing time and, if approved, each extension will be for a period of fifteen (15) days.

  • Submit the "Request For Extension of Closing date" (Extension Request form) and all the required supplemental supporting documents to HUD's Closing Agent prior to the expiration of the sales contract.
  • Documentation submitted with the extension request must establish that a closing can reasonably be expeted to occur within the extension period.
  • The extension request must be accompanied by a cashier's check, money order or other certifiedfunds in the appropriate amount and made payable to HUD. The fee is based on the Contract Sales Price.

Contract Sales Price                                                                     Extension Fee

Equal to or less than $25,000.00                                                     $150.00 ($10.00 per day)

$25,000.00 to $50,000.00                                                                $225.00 (415.00 per day)

$50,000.00 and over                                                                          $375.00 ($25.00 per day)

  • The initial 15-day extension will be provided for the owner occupant buyers, at no cost, if documentation is provided indicating that proper and timely loan application was made, that the delayed closing is not the fault of the buyer and that mortgage approval is imminent.
  • The extension fee will be retained by HUD. In the event that the buyer closes prior to the end of the extension period, the unused, prorated portion of the extension fee will be credited to the amount due at closing.
  • The approval of an extension does not obligate the AM Contractor, as HUD's Representative, to grant future extension.

Broker Commissions:

HUD will pay up to 6% or a minumum of $2,500.00 commission to be equally split between the Listing and the Selling Broker's,

Thank you
Jim Artzner
House Finders, Inc.













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