Forget what you thought you new about HUD Homes! The entire HUD Home system got a total makeover in Fall 2010! Don't let a lost bid be the way you find out what's new with HUD Homes!

1. Welcome to PEMCO!
“Successfully Selling HUD
Asset Management Company contracted by HUD to
Homes in California” manage the HUD Sales Process in 26 States and
U.S. Territories.
Presented by: – Areas defined as 1A, 2A, 1D, 2D. 2,S
PEMCO, Ltd. has been performing marketing
Angie Nwanodi and management services for HUD for more
The ACG Group, Realtors® At Evergreen Realty
Realtors® than 10 years
HUD Local Listing Broker for PEMCO, Ltd. Most recent contract with HUD in 2010 to expand
Asset Management Contractor to the US Department of HUD in across the country in M&M3!
areas 1A, 2A, 1D, 2D, & 2S
We’re excited about bringing our team to you and
Revised 06/28/11 working with Real Estate Professionals to move
HUD homes!
Dynamics of the HUD Sales Mortgagee Compliance
Process for M&M3 Manager (MCM)
One Nationwide Contractor
– Michaelson, Connor & Boul (MCB)
Michaelson,
HUD
Based out of Oklahoma
Santa Ana HOC
Performs a variety of pre- and post
pre-
conveyance services to ensure that HUD’s
HUD’
interests are protected
Mortgagee Field Services Asset Manager
– Conveyance condition
Compliance Manager
HUD
Designated
– Guidance to Mortgagees regarding claims and
Manager **PEMCO**
Closing
conveyance
MCM (1) FSM (2) AM (2)
Agent – Ensure marketable title
Field Services Manager
Asset Manager (AM)
(FSM)
Multiple Contracts per Region AM manages & markets sales process and
properties
– Properties to be assigned randomly
– Ensures accurately and competitively valued
– Makes sure sales achieve highest net return
FSM provides property maintenance and – Minimize holding time
preservation services consisting of: – Handles closing and accounting of funds
– Takes customer service and satisfaction
– Inspecting the property
– Securing the property
Multiple AMs per region
– Performing cosmetic enhancements/repairs – Properties to be assigned randomly to
– Providing ongoing maintenance contractors

2. Asset Managers
Property Flow Chart / QC
Region 2S
Region 2S Covers: Alaska, California, MCM
FSM
AM
Receives Markets
Hawaii, Oregon, and Washington Mortgagee
Initiates Property &
Inspect
& ensures
Safe Secure
FHA Claim Ensures Marketable
& Marketable
and Condition & Condition
initial Marketability
Equal distribution of inventory conveyance QC the MCM
QC the FSM
QC If Issues
amongst two AMs to HUD
Reject
If Issues
Reject
Reject
Property Property
Property
PEMCO, BLB Resources
What is a HUD Home? What is a HUD Home?
NOT low-end housing!
low-
Definition: a one-to-four unit single-
Definition: one- to- single-
family residence acquired as a result
of a foreclosure on an FHA-insured mortgage
FHA-
Vary in price, location, and condition
– HUD Homes for sale throughout the state
– Some are move-in ready, others are not
move-
Offered for sale at fair market value,
based on a recent appraisal by certified FHA
appraisers
Sold AS-IS
AS-
Understanding AS IS Appraisals
All appraisals are performed by FHA
No warranties, guarantees, or certified appraisers
representations about the property, Appraisals are good for 6 months
FHA Insurable or otherwise
HUD pays for first appraisal. If lender
No repairs
requires a 2nd appraisal for a
– Exception: “Safe, Secure, Marketable”
Marketable”
conventional loan, buyer is responsible
Buyers allowed and encouraged to get
for fee. If appraisal expires under
independent Home Inspections
contract, buyer is responsible for new
– Buyers do NOT acquire bills/liens
appraisal.
– Properties are sold with clear market title
3

3. FHA Appraisal
Appraisal Expiration
Requirements
The statement of work
paragraphs 5.2.1.2.3 and FHA requirements: Appraisals are
5.2.1.2.2 state: good for 120 days. It is lender
Appraisals are ordered every 6 discretion to allow the buyer to use a
months and appraisal and photos 1004D which provides an additional 30
are to be given to the winning days to the appraisal in a non
bidder for use in obtaining a declining market. If the lender
requires an additional appraisal, the
mortgage loan. If lender requires
a 2nd appraisal, buyer pays for it. buyer is required to cover this cost.
Who can buy a HUD Home? Buyer Types Continued
Owner Occupants
– Giving priority during certain cycles- 30 day
cycles-
exclusive list period to O/O bidders
– Must occupy the house for 1 year
Buyers will fall into one of three categories: – CANNOT participate in HUD sales for 2 years
after purchase
1. Owner-Occupants
Owner-
2. Investors Investors
3. Government Agencies & HUD approved – CANNOT Bid until day 31
Non-Profit Organizations
Non- – No restriction on quantity
HUD’s Special Programs
HUD’ HUD’s Special Programs
HUD’
Properties which are eligible for HUD’s special
HUD’
programs will list to a “lottery round” before they
round” Good Neighbor Next Door
are listed for sale to the general public
Designed to enhance urban communities by offering discounts
on HUD homes to Firefighters, EMT’s, Police, and Teachers
EMT’
Two types of lottery round eligible bidders – 50% off the property list-price
GNND and HUD approved Non-Profit/Govt Agency
Non- Profit/Govt - Full time employment & must live and work in Revitalization Area
- Information on becoming a HUD Approved Non-Profit
Non-
Organization is at www.hud.gov Requirements:
– Property must be located in a designated Revitalization Area
– Buyer must live in the home for at least 36 months
3% LISTING BROKER COMMISSION TO BE PAID ONLY ON
– Buyer nor spouse may not have owned title to property in last 12 months
LOTTERY ROUND PROPERTIES , NOT GNND PROPERTIES
– Bidder nor spouse cannot have ever before participated in GNND program
GNND eligibility will be indicated on the listing

4. Additional GNND notes Get Connected!
Resources for agents
Must bid 100% of the listing price WWW.HUDPEMCO.COM
- Listing site, calendar of events, updates, registration, forms, etc.
Can utilize any type of financing or cash deal Other Important Sites
- www.HUD.gov – as a national resource for HUD information
- www.HUDHomeStore.com – HUD listings
FHA Financing on GNND - www.HCD.ca.gov - California Dept. of Housing and Community Development
– Must qualify for entire contract amount prior to discount Social Media Networks
– Can finance into the mortgage all reasonable and - networking, news, updates, featured listings, featured info.
customary closing costs, including prepaids and real estate - Facebook, Twitter, Active Rain, LinkedIn, YouTube
Facebook,
commissions
PEMCO Buyer Outreach Events
HUD will NOT pay any closing costs or real
estate commissions on GNND properties
HUD WILL ALLOW THE $100 DOWN ON THE GNND
PROGRAM
Keep your eyes and ears
Expectations for Agents
open!
Quality
in all work and all aspects of working with HUD and this process
Professionalism
when interacting with the buying public, other selling agents, and everyone and Agents play a critical
every aspect involved in the HUD Selling Process
Communication role in the success of the
with not only buyers and those involved with your transaction, but also with the
PEMCO team to express concerns or suggestions or ideas that become evident
HUD Sales Program
to you as you work in the field and become involved in HUD selling
Motivation We want to hear from
to make the sales and move HUD Properties!
Teamwork
you!
as a real estate community and with PEMCO to work toward the continued
betterment of the California HUD sales process and ensure that the HUD
process is always operating as successfully as possible
Registering with HUD
Any licensed real estate agent can sell
Steps to Selling HUD HUD homes
Homes BROKERAGES, not individual selling
agents that actually register with HUD
Get your NAID number When a brokerage registers with HUD,
Register at the brokerage will receive a NAID
www.HUDHomeStore.com number, which will be used by ALL
agents in that brokerage

5. Create a Selling Agent
Registering with HUD
Account
Easy and free
To become registered, your principle Will need your brokerage’s active NAID
brokerage’
broker will need to complete the number to set up this account
Broker Registration Package found at You will log into this account later when you
www.HUDHomeStore.com begin the bidding process
– NAID Package sent to Santa Ana HOC www.HUDPEMCO.com
Accuracy is extremely important HUD Home Store link
Or go directly to www.HUDHomeStore.com
Process takes 6-8 weeks
6- Register as Bidder in the top right corner
Must renew annually Instructional videos found on www.HUDHomeStore.com
Finding properties Who is the LLB?
HUD/PEMCO contracts Local Listing Brokers
to provide FULL listing services on HUD
Unlisted properties owned by HUD Homes
– www.HUDPEMCO.com LLB Responsibilities:
HUD Home Store Link
o Lists properties on MLS and posts properties to their
Or www.HUDHomeStore.com websites
– Search field on first page o Most appropriate and mainstream MLS for area
– Input address and view property contacts o Place professional, quality sign in yard
o Provides routine inspections and reports
o Customer Service & Contract Review & Informational
When available for sale: resource on HUD listings and HUD sales process
– Local Listing Broker (LLB) sign in the yard o Provide wide market exposure of the HUD sales
– Listed on MLS process and the properties
– www.HUDPEMCO.com o Provides access to HUD properties to ALL NAID
registered brokers by providing key codes or meeting
Provides link to HUD Home Store agents at property regardless of MLS affiliation
– Recommended method of searching for HUD Homes
– Free, public-access website
public- No current solicitation
Listing Periods Listing Codes
•Properties will list Daily!!
•Lottery Properties
Some online listings are accompanied with
•7 days for special buyer types
•New listings
codes representing the financing
•Insurable/Insurable with Escrow options and/or property conditions of
•30 Day Exclusive Owner Occupant Bidding Period Comprised of:
•9 Days Sealed Bidding the property for sale.
•Sealed = Bids will accumulate over the length of this 9 day
bidding period and will be reviewed on the 10th day of this
period
•20 Days Daily Bidding (o/o bids reviewed daily)
?
•All bidders allowed on day 31
•Uninsurable
•5 Days Sealed Exclusive Owner Occupant Bidding Period
•All bidders allowed on day 6
13

6. Property Condition Codes LBP Stabilization
Stipulations for HUD to complete a LBP assessment:
- built before 1978
- owner-occupant
owner-
Code Indicates Description - FHA financing
F Flood Zone Property is located in an area where coverage
under the National Flood Insurance Program Must meet all of the above conditions
may be required to obtain a loan
HOA Homeowners’ Property is covered by a Homeowners’ Requests made to FSM for inspections through AM via
Association Association which will most likely require HOA
P260 at contract execution
fees and dues to be paid by the home HUD will fund up to $4,000
occupant For stabilization exceeding $4,000 HUD will (at their sole
discretion):
LBP Lead-Based Property was built before 1978 and may
a) cancel the sales contract and buyer receives 100% EM back
Paint contain lead-based paint; LBP Addendum Form b) allow to change financing to 203(k), conventional, or 203(k)
must accompany the sales contract streamline (only if less than $5,000)
NO ONE IS TO ENTER THE PROPERTY WHILE STABILIZATION OCCURS.
THIS WILL DELAY CLOSING.
Financing Codes More About IE
Code Indicates Description “Repair Escrow” only applies to FHA 203(b) financing
Escrow”
NOT a gift from HUD
IN Insurable Property meets FHA 203(b) financing Added to mortgage
requirements; no obvious repairs necessary to – sales price remains the same
insure an FHA loan to buyer On the listing you will see:
IE Insurable w/ Property eligible for a 203(b) FHA loan; – Itemized list of required repairs
Escrow necessary repairs total less than $5,000 – Total cost of these repairs
– The 110% total that will be added to the mortgage
Lender responsible for:
UI Uninsurable Property requires more extensive repairs after – Repairs
the close of escrow and is not eligible for FHA – Licensed contractor
mortgage insurance in the property’s “as is” – CHANGE OF ESCROW: To change the repair escrow, a revised
sales contract with new repair escrow amount listed on line #4 is
is
condition. needed. Also a lender letter listing the repairs and total amount
amount
of repairs. These figures must match line #4 on contract.
Shows eligibility for FHA 203 (b); cash or conventional do not NO repairs prior to closing!
apply
Let’s look at
Let’
www.HUDPemco.com and
www.HUDHomeStore.com
to learn about:
News and Announcements
Becoming HUD Registered
Signing up for a Selling Agent Account
How to Search for Listings
Training and Events Calendar
Social Media Networks
A Listing’s:
Listing’
– PCR (Property Condition Report)
– Virtual Tours
– As Is Value vs. List Price
– Bid Deadlines
– Property contacts

7. FHA Buyer Benefits Showing and Advertising
1. Appraisal is accepted by FHA HUD Homes
lenders. No additional
appraisal needed for FHA All Registered Selling Agents can show and
loans. advertise any available HUD Property
Must adhere to advertising/showing
2. 1st extension is waived (applies guidelines
to all O/O buyers) – Non-compliance could result in your brokerage’s
Non- brokerage’
3. Termite report is ordered and NAID number being suspended!
active infestation is cleared Report Ad Non-compliance by downloading
Non-
and completing the form on our website
4. LBP inspection & clearance. - Email: adnoncompsac@pemco-limited.com
adnoncompsac@pemco-
HUD pays up to $4,000 repair
work.
Advertising Regulations Advertising Regulations
Do advertise HUD homes in a Be positive and proactive in your HUD Home
advertising – Get creative!
professional and ethical manner
– Do not destroy, damage, or remove the advertising,
Refer to HUD Homes as “HUD-owned”
HUD- owned”
including signage, of another HUD-registered selling or “HUD-acquired” or simply, “FOR SALE”
HUD- acquired” SALE”
listing agent for any HUD Property – Do not refer to or advertise properties as “distressed”,
distressed”
“foreclosed,” “government,” “must sell” or “repossessed” or any
foreclosed,” government,” sell” repossessed”
– Do not state or imply the price of the property differs from other adjectives with notable negative connotation
the list price shown on the PEMCO’s Property Listing Site
Closing Costs: Use “HUD will pay up to 3% closing costs”
Do not place signage in a HUD property’s
property’
yard. Only the LLB can do so.
Do not imply exclusivity – Agents can use directionals but do not abuse this right!
limit directionals to an appropriate number
– The HUD Home Sales Process is an OPEN Selling Process Excessive use of directionals will be handled on a per case
basis, at the discretion of PEMCO, Ltd.
20 20
Showing HUD Homes:
Advertising Regulations
Electronic Lock Boxes
Always include the Equal Housing Opportunity Logo HUD Properties will now have Electronic Lock
Always include a HUD-Home Disclosure and link to
HUD- Boxes placed on them
the HUD listing site www.HUDHomeStore.com & – Lock Boxes placed on by LLB
www.HUDPemco.com for more information.
– Report Missing Keys to LLB
Note any flood plain zones, or other warning – MLS will have information about Lock Box
information as it appears on the property’s Internet
property’
listing, if applicable I don’t have an Electronic Lock Box Key, can I
don’
Adhere to all federal, state, county, city and real still access?
estate commission advertising regulations as well
– YES! Provide following info to LLB to coordinate access
as compliance with the Truth-in-Lending Act when
Truth- in-
advertising HUD Properties State specific real estate license
– Including but not limited to: Blind Advertising, regulations Driver’s license or identification card
Driver’
regarding directionals, etc.
directionals, Your NAID #
20 19

8. Showing Guidelines Fair Housing
It is HUD’s mission to increase homeownership,
HUD’
You must sign the sign-in sheet
sign- support community development and increase
access to affordable housing free from
discrimination.
discrimination.
No open houses
Areas of Illegal Discrimination:
– EXCEPTION: Listing Brokers may hold an – Race
– Color
open house on their listing ONLY during – Religion
11 am- 2 pm.
am- – National Origin
– Sex
Always secure the property when – Handicap – mental or physical
leaving and return key to the lockbox – Familial Status
Please review details in handbook
21 21
Complete the Sales Contract Accepted Offer Contracts
Package with your buyer before CA, OR, WA, AK, & HI send to:
you bid
Buyer’s signature is your permission to
Buyer’ PEMCO, LTD.
place a bid on their behalf 1601 Response Road, Suite 260
If offer is accepted, you only have two Sacramento, CA 95815
(2) business days to submit the entire Office: 916-927-7313
916- 927-
contract package to PEMCO Attention: Contracts
– Sales Contract, Addendums, Earnest Recommend Delivery Confirmation/Tracking
Money, Pre-Qual letter, etc.
Pre-
The HUD Sales Contract
Package
Electronic HUD-9548 Sales Contract / Condition of Sale
HUD-
Note that the Sales Contract for a HUD Sale is a unique contract, different from your state Contract forms
contract,
Electronic filing of HUD-9548 contract addendum
HUD-
Owner-Occupant Certification (if applicable)
Owner-
“For Your Protection: Get a Home Inspection”
Inspection”
Radon Gas and Mold Notice
Lender Letter of Commitment / Pre-Qualification Letter
Pre-
Forfeiture & Extension Policy (Addendum A, Rev. 6/15/2009)
Lead-Based Paint Addendum (if applicable)
Lead-
Flood Zone Addendum (if applicable)
Notice to Purchaser Addendum (if applicable)
Earnest Money Check with the Earnest Money Certification Form
All documents must be signed in BLUE ink.
See http://www.hudpemco.com/2S_forms.htm 22

9. FHA Amendatory Clause Earnest Money
Deposit Amounts (certified funds ONLY Cashier’s
Cashier’
Check or Postal Money)
Will not be executed on HUD Sales – $500 for sales price $50,000 or less
– $1000 for sales price $50,001 and up
Addendum not required; HUD Homes
are exempt from the clause EM is made payable to “HUD OR BUYER’S NAME”
BUYER’ NAME”
(BOTH NAMES on check separated by word OR)
and send with Sales Contract to PEMCO unless
property is in OREGON (refer to next slide)
The FHA Amendatory Clause is intended to ensure that
prospective home buyers with FHA-backed loans receive
important information in a timely manner about the house to PEMCO will send EM to HUD Designated Closing
be purchased. In particular, the Amendatory Clause stipulates Agent to be held and managed
that if buyers have not received information about the
appraised value of the home they intend to buy, the buyers
are not obligated to purchase the home. EM may be entirely or partially forfeited or refunded
if contract fails to close
– Specifics outlined in Forfeiture and Extension Policy
The HUD Home Bidding
Closing Agents
Process
Chicago Title (Northern CA) HUD Homes are sold via an online electronic
bidding process
Tiempo Escrow II (Southern CA)
– Only way to buy a HUD Home
Fidelity National Title (OR)
Guardian Escrow (Hawaii) In promotion of homeownership, buyers
who are bidding as an owner-occupant
owner-
Stewart Title of Alaska (Alaska) receive priority for a given amount of time.
GBS, LLC (WA) Agents must submit bids on a buyers behalf
Additional Notes about Submitting a Bid – Bidding
Bidding over the “as is” value
is”
Bids can be submitted 24/7 but are not reviewed The “as is” value = the appraised value
is”
Holidays or weekends Bid may be higher or lower than AS IS price
Daily Bid Deadline is 9:59 p.m. PST (11:59 Central You can NOT get a 2nd appraisal when using
Time) FHA
No time preference in bidding PEMCO will notify you if you overbid and
requires submission of proof of funds
If PEMCO receives two acceptable bids which are the
exact same amount, we will select the winning bid by
Notice to Purchaser Addendum completed
randomized electronic drawing.
and submitted with Contract Package
Buyer must bring cash to closing
If you place a bid you wish to withdraw, you must o Can NOT finance
cancel this bid prior to the day’s bid deadline. Bid
day’ o A “Subject to Value” will not support the overbid
Value”
cancellation form found on www.HUDPemco.com amount
26

10. Submitting a Bid - Let’s go online together &
Let’
Overbidding complete a Sales Contract
Options if you have overbid: Go to www.HUDHomeStore.com and find a
property to bid on
- If using FHA, proceed with closing
Sales contract packages for all buyers in all
and verify funds. Buyer pays overbid states found at www.HUDPemco.com
amount. (Forms Tab)
- Use cash or conventional Complete your Sales Contract using a blue
- Cancel contract pen
Back up offer Video tutorials available online 24/7 at
Relist – www.HUDContractDemo.info
– www.HUDPackageDemo.info
Submitting a Bid Lines 1 & 2
The following slides are to assist you with LINE 1: Print purchaser’s full, legal
purchaser’
questions on the contract page
name and property address (address
Bids will be submitted online
found on HUDHOMESTORE.COM)
The information entered on the bid
submission page will become the first page Line 2: Print buyer’s full, legal name
buyer’
of the sales contract along with vesting. Vesting MUST be
Your instructional facilitator will provide you filled in. Vesting can be changed later
a sales contract to complete for practice
purposes only using an addendum, but in order to
accept contract, vesting must be
present.
Line 3 & EM amount Line 4
Line 3: Offered Sales price of property Line 4: Check financing type. If FHA,
(1st line) and earnest money amount be sure to check FHA Box PLUS the
(2nd line) to be held by PEMCO (3rd FHA type box ( i.e. 203B, 203B repair
line) escrow). If using FHA 203B repair
Earnest Money Deposit escrow, list repair escrow amount on
$50,000 or less =$500; $50,001 and line (repair escrow info found on
more = $1,000. Certified funds HUDHomeStore.COM).
HUDHomeStore.COM).
(cashier’s check or PO Order) to be
(cashier’
made payable to: BUYER OR HUD
(both names on check).

11. Line 4 Continued Lines 5 & 6
Use TBD “to be determined” on 3
determined” Closing Cost – Line 5
– HUD will allow up to 3% the purchase price of the
spaces. property to go toward closing costs
“down payment of $ TBD”
TBD” – Enter this numeric figure (not percentage) on Line 5
“in the amount of $ TBD”
TBD” Commission – Line 6a
– HUD will allow UP to 3% of the purchase price of the
“for TBD months”
months” property to go toward agent commission
If cash or conventional, check – Line 6b will populate 3% for Listing Broker Commission
appropriate box. Repair escrow does REMEMBER: Lines 5 and 6a affect the net to HUD.
NOT apply!
Lines 7 & 8 Lines 9 & 10
Line 7: NET to HUD (offered sales Line 9: 45 days in escrow EXCEPT if
price minus closing costs & using 203K financing, then it will be 60
commissions). Winning bid is always days
determined by NET to HUD. Line 10: Choose “may” if buyer wants
may”
Line 8: Purchasing Type: Select to be a possible back up bidder if
appropriate type of purchaser (i.e. award was not made to him/her.
owner occupant, investor, NP)
Lines 11 & 12 Line 13 Certification of
Line 11: If property was built prior to
1978, LBP addendum must be with
Purchaser Use Blue Ink!
contract. If buyer uses FHA financing, Line 13: Purchaser must print full,
HUD will pay up to $4,000 to stabilize legal name and sign full, legal name
LBP issues. and include complete address of
Line 12: Purchaser MUST initial on existing residence and phone number
the line provided for purchaser. Both (not property to be purchased). Be
initials on same line or above line if sure name(s) on lines 1, 2, & 13 all
name(s)
more than one buyer. DO NOT initial match! Same legal name(s), same
name(s),
on the line provided for seller (this is spelling, same individual(s).
individual(s).
for HUD).

12. Certification of Purchaser Certification of Broker
Continued Continued
Line 13: Purchaser’s social security
Purchaser’ Line 14: Broker’s business name and
Broker’
number. If incorrect, we will request a address. This must be the principal
copy of identification (i.e. driver’s
driver’ broker who is registered with HUD.
license and social security card).
Principal broker may provide letter
Line 13 (cont): Include date contract authorizing agent to sign on his/her
is signed in designated area. behalf. This letter must be on broker
Line 13 (cont): DO NOT sign on line letterhead, original signature, and
for seller - Secretary of HUD- this is
HUD- accompany each contract.
reserved for HUD
Certification of Broker or
authorized agent signing Submitting a Bid
Continued
Line 14 (cont): EIN number or SS# in Review your bid and confirm to submit
space provided Bid Confirmation Number will be
Line 14 (cont): broker’s NAID number
broker’ provided.
Line 14 (cont): broker’s phone number
broker’ – Enter conf # on page 1 of populated contract
package. It will auto-populate on Electronic
auto-
Line 14 (cont): broker’s signature (or
broker’ Filing of 9548 Contract Addendum (pg 4)
designated broker signing on behalf of – A populated contract package is available at
principal broker –must have letter) www.HUDPemco.com for you to complete.
Accuracy is critical as it will auto populate the
information you input on page one (version 1.9)
Avoid Common Errors! Check Bid Results
1. Social Security Numbers
On the bid deadline day, all offers are reviewed
2. The buyer’s name must match
buyer’ and then accepted, rejected, or counter-
counter-
exactly on lines 1, 2 and 13 offered.
3. After the contract/bid submission Bids are usually posted at Noon the day after
the close of bidding (start 2-day deadline)
prints out: 2-
PEMCO will notify you via email if your bid is
1. All signatures must be in blue ink accepted and the information will be posted on
HUD Home Store along with any back-up offers
back-
2. Initials on line 12 acknowledging that may be acceptable. Be pro-active and
pro-
the EM Policy. Only initial on buyer’s
buyer’ check HUDHomeStore.com for results.
line (if 2 buyers, both initial on same
line).

13. Submitting the Contract
Contract Corrections
for a Winning Bid
HIGHLY Recommended: Request LLB to review 2 business days to return corrected
contract prior to sending to PEMCO.
contract
Ensure the entire package is received at PEMCO’s
PEMCO’
office within two days of the notification May require a new contract package
Hand Deliver or Overnight Mail the package. Contract will be canceled or awarded
Recommended to use tracking method.
to next highest bidder if the contract is
PEMCO will sign off on the contract and forward it returned still containing errors
via email to selling agent and closing attorney
– The day selling agent receives the ratified contract is the
contract’s official “Acceptance Date”
contract’ Date”
30
Contract Revisions
If you need to change items on the
contract:
You can not use white out or liquid paper
on any contractual documents! - contact PEMCO immediately
- PEMCO must approve and implement
these revisions
Corrections required by PEMCO may mean writing a new sales contract, a
new Pre-Qual Letter, obtaining your buyers signatures again ….
Note: Changes to the indicated method of
Make every effort to submit your contract correctly the financing will always require a new original
first time! contract
30
The Closing Timeline Home Inspections
Optional, but highly recommended
Normal Closing closes 45 days from contract acceptance
15 day Due Diligence Period
Cash Closing closes 45 days from contract acceptance
– Borrower must have the home inspection in the first 15
203k Closing closes 60 days from contract acceptance days to avoid losing EM if they should cancel due to
property issues found during the home inspection.
The clock begins when contract has been accepted by PEMCO and
property moves to Step 8 MUST Have FSM Authorize your Utility Activation
Form for your Home Inspection
Cannot begin process until contract signed
48 hours to complete home inspection after last utility is
turned on.
Must turn off utilities after inspection
31 31

14. Home Inspections
www.HUDPemco.com click on forms; select 2S,
find FSM’s utility activation form. Complete
FSM’ Under Contract Vandalism
form, provide a copy of sales contract (pg 1),
submit payment in certified funds. FSM will
grant permission for utilities to be activated. Download form, complete, and mail to
You must be present at property for the VandalismSac@Pemco-Limited.com
andalismSac@Pemco-
inspection and have the utilities turned off after
inspection. Options for moving forward toward
closing
AMS
2021 Hartel Street
Levittown, PA 19057
800-781-
1558
Postponing closing and extension fees
22 Greeley Street, Ste. 5 603-423-
CITYSIDE Merrimack, NH 03054 0313
33
Termite Inspections
Stipulations for HUD to provide Termite and WDO
Letter:
- State or Zone Mandated
- FHA financing
Buyers cannot move in or start
repairs prior to closing!! Buyer must use FHA financing!
Selling agents must accompany HUD will fund section 1 treatment and repairs if
buyer is using FHA financing
buyers, inspectors, etc. to HUD
Properties at all times prior to If the property does not meet above conditions:
closing. - Buyer can have termite inspection performed at any time at
their own cost if their contract is accepted
- Buyer will be responsible for treatment and repairs
32
Extensions Canceling the Contract
Property Per Day Time Frame Total Extension Fee to
Sales Cost Fee Buyer
$0 - $25,000 $10 15-day increments $150.00 If you are made aware that a purchaser is not going to close,
please contact PEMCO ASAP
$25,001- $50,000 $15 15-day increments $225.00 – Do not let the contract just cancel on its own. On behalf of HUD,
HUD,
PEMCO will withhold EM deposit if contract cancels on its own.
$50,001 + $25 15-day increments $375.00 Contract may not fall out of compliance.
Extensions are purchased and granted in 15-day ‘packages’ except Use the “Contract Release” and “Earnest Money Disposition
for 203(K) financing which will be 30 days Release”
Request” forms from our website justify reason for
Request”
If the contract closes prior to the use of all 15 days, the remaining cancellation
‘per-day fee’ will be pro-rated to the buyer and refunded by escrow – accompanied with the necessary documentation to request a
Must be submitted in the form of certified funds (cashier’s check or refund . Buyer has 30 days to request EM refund.
PO money order)
Email to: CancelSac@pemco-limited.com and copy the Local
ancelSac@pemco-
Fee and Request Form must be submitted to closing agents Listing Broker.
no later than 5 days prior to expiration. Be sure to send copies of
extension docs to listing broker to ensure communication is rec’d by
PEMCO! * Important to submit these forms prior to the expiration of sales
contract
Waived fees available (per case basis. First extension waived if buyer
is owner occupant). 32

15. Pre-Closing Walk Through
Pre- Closing Protocol
Recommend that you complete the day Closing documents need to be into
prior to or the day of closing closing agent from the lender 5 days
If lockbox removed coordinate with LLB to prior to closing
retrieve key for buyer
Closing agent submits to PEMCO
If there are issues, vandalism, etc., contact
PEMCO ASAP PEMCO signs documents and property
Closing will be postponed to attend to issues is released to buyer
– Extension fee waived
35
Complete the Survey! After Closing
At closing, both you and your buyer will be provided with a short
survey about the HUD Home Selling Process.
From Property conditions to PEMCO’s helpfulness to The buyer can now have
Closing Attorney assistance, the survey inquires about your utilities activated for
experiences as a whole in your HUD Home Sale.
permanent use and occupy the premises
Please take the time to complete the survey.
The PEMCO team strives to ensure the high-levels of satisfaction
At their own expense, the buyer will need to have
both agents and buyers are having in their HUD Transactions, the home’s locks changed or re-keyed
home’ re-
and the surveys provide extremely useful insights and data in
helping us to determine how pleased everyone is with our progress.
If the survey is not given to you or your buyer – please, ask for it!
LLB Contact Info
The ACG Group, Realtors®
Realtors® AM & HUD Contact Info
450 N. Mountain Avenue, Suite A
Upland, CA 91786 PEMCO Sacramento Office
General Questions E-Mail:
E- 1601 Response Road, Suite 260
AgentQuestions@ACGRealEstate.com Sacramento, CA 95815
Accepted Contract Review E-Mail:
E-
HUDContracts@ACGRealEstate.com
Office: 916-927-7313
916- 927-
877.ACG.ASAP x04
877-927-7313
877- 927-
877.224.2727 x 04
Santa Ana HOC
Website: www.ACGRealEstate.com
Santa Ana Federal Building
24/7 ACG Inventory Check: www.ACGOffers.com
34 Civic Center Plaza, Room 7015
Santa Ana, CA 92701-4003

16. Thank you for attending!