HUD Contract Ratification

Congratulations on your contract getting your contract ratified.  Our goal is to make the process as smooth as possible, so we have provided some helpful reminders down below. Also, here are a few key quick links

HUD no longer provides a copy of the appraisal for FHA loans. Lenders now manage that as if this were any other transaction. It might be beneficial for them to review Mortgage Letter 2015-17. All appraisals obtained by the lender are at the purchaser’s expense, and the purchaser must pay in cash the difference between the bid amount and the appraised value or the maximum FHA insurable amount.

We recommend reviewing  “Important Reminders about Bidding and Lending on HUD Homes”. Also take a look at the Agent Resources page on BLB Resources’ website. This page also features valuable information and documents such as the Selling Broker Handbook, the Most Common Selling Agent Questions, and the Most Common Sales Contract Package Errors.

We highly recommend getting a professional home inspection (you have 15 days after contact ratification). In order to get utilities activated, please follow the guidance on this sheet. Neither BLB nor the listing brokers (us) manage the utilities. All inspections, tests, and risk assessments are done at the buyer’s expense. Please note that the buyer must request permission to activate the utilities from the FSM (Field Service Management company) assigned to the property, which may require a non-refundable deposit. The buyer is responsible for any damage that occurs as a result of utility activation and for rewinterizing the property, if necessary.

No repairs may be done to the property at any time prior to close of escrow. Violating this (any repairs, including rekeying, done before the close of escrow) may result in:

  • cancellation of your contract,
  • forfeiture of the EMD
  • AND suspension of your NAID and bidding privileges.

The FSM, its contractors, and our office all perform routine inspections to ensure compliance with this policy.

Visiting the property: the buyer, their inspectors, appraisers, or other contractors visiting the property prior to close of escrow must be always accompanied by you. If, at any time prior to close of escrow, you notice any property condition changes or discover any information about the property that was not previously disclosed, please notify our office. We’ll ensure it is reported to BLB Resources and the FSM.

Extensions: If you need an extension, you need to use the BLB Resources form. BLB’s policy states extension requests must be submitted with proof of payment even if the extension fee is going to be waived. The fee will be refunded to the buyer at closing if it is waived. Submission of an extension request does not guarantee it will be granted, even if prior extensions have been approved.

Please remember that the buyer is responsible for rekeying the property after close of escrow, which we strongly encourage for the buyer’s safety. We may provide initial access to the home after close of escrow, but may not give keys, copies of the keys, or key codes to you and/or the buyer at any time.

We will return to the property after closing  to retrieve our lockbox and signage. Please, please, please do not discard these items! If  we have not picked them up, please contact our office for immediate pickup. We want them back!

During the transaction process, you will periodically receive emails from BLB Resources. Check to see if they include executed documents (e.g., contracts, change requests, extensions, etc.), closing updates, and other information. Let us know if you have any questions from them.