Download NSP Bulk Sales Guidance (FAQ)

PEMCO, LTD. Management & Marketing Contractor for HUD
Ph: (404)-995-7111 Website:www.hudpemco.com
HUD’s Neighborhood Stabilization Program Bulk Sale Initiative:
Information for Local Governments / NSP Recipients who wish to purchase
HUD-owned properties with NSP Funds
Q
A.
What is HUD’s NSP Initiative?
HUD is making a Bulk Sale Initiative available to NSP recipients who wish to purchase HUD
Homes with the NSP funds.
Q
A.
Who is an NSP Recipient?
NSP recipient or grantees are local government agencies in receipt of NSP Funds under the
Housing and Economic Recovery Act of 2008 (HERA). These funds were granted to these
agencies based on areas of greatest need as defined by HERA. Each agency submitted their
proposal to HUD in 2008 and all agencies have been determined and funds have been
allocated.
Q
Can anyone else beside NSP grantees participate in the bulk sale initiative or receive bulk
discounts?
No. This program is specifically designed to work with NSP grantees and promote sales of
HUD owned homes in neighborhoods deemed in greatest need by HERA. Although you can
not receive bulk discounts, all HUD owned homes are available to be purchased by the
general public and our listings and sales process can be found on www.hudpemco.com
A.
Q
A.
Which HUD Properties are eligible for NSP Bulk Sale purchase?
All HUD REO Properties which have 60+ days on market with no acceptable offers will
become eligible for discounted bulk sale purchase by eligible NSP Participants. Eligible NSP
participants must propose to purchase at least ten (10) properties at a time.
Q
A.
How will I identify eligible properties?
Eligible properties will be flagged as such on HUD-PEMCO’s listing site (www.hudpemco.com >
click “Georgia” tab). Each NSP recipient will also receive a weekly Excel spreadsheet from
PEMCO of all NSP-Bulk-Sale-eligible properties in the state, with each property’s
corresponding data, price, discount price, etc.
Q
A.
When does the Bulk Sale Initiative for NSP Recipients start?
The bulk sale initiative is scheduled to start on March 16, 2009.
Q
A.
What discounts are available for bulk sale purchases by NSP Recipients?
There are several discounts depending on the number of properties purchased, as well as the
value of each property.
ƒ Purchasing 10 to 49 properties at a time:
- Properties with appraised values greater than $100,000 will be given a 10%
discount off the appraised value of the property.
- Properties with appraised values of $100,000 or less will be given a 50% discount
off the appraised value of the property.
ƒ Purchasing 50+ properties at a time:
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PEMCO, LTD. Management & Marketing Contractor for HUD
Ph: (404)-995-7111 Website:www.hudpemco.com
All properties will be given an additional 5% discount (therefore, a 15% discount
off the appraised value for properties appraised at greater than $100,000; and
55% discount off the appraised value for properties appraised at less than
$100,000)
Properties with appraised values of $20,000 or less and considered by HUD to be
“demolition” properties will be sold for $100
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ƒ
Q
A.
Can we “mix and match” property discounts?
Yes. As long as you are purchasing at least 10 properties, the discount is per property, not per
“package.” For instance, if 8 properties were appraised at less than $100,000 and two (2)
properties for more than $100,000, the discount would be 50% off the appraised value for
each of the 8 properties and 10% off the appraised value for each of the two (2) properties
which were appraised at more than $100,000.
Q
A.
What if we want to purchase less than 10 homes at a time?
As a government agency, you will be able to submit offers on any HUD Home and purchase
with NSP funds by submitting an offer on PEMCO’s electronic bidding site with your NAID
number, but if you are not purchasing at least 10 eligible properties, you will not be able to
receive the initiative discounts.
Q
What do I need to submit to PEMCO to show my eligibility to purchase in the NSP Bulk Sale
Initiative?
If you are not already, you must register with HUD by completing the “Broker Application
Package” found on PEMCO’s website. Complete this package and return to PEMCO ASAP.
Once received and processed, your organization will receive a Name and Identification (NAID)
Number. This NAID number will allow you to place offers on HUD Homes.
ƒ You will also need to submit to PEMCO:
- a copy of your NSP Recipient Letter to prove you are a valid NSP Recipient
- the contact form on the last page of this FAQ Sheet
A.
Q
Once we’ve selected properties we’d like to purchase, how do I submit bulk offers on HUDowned properties?
A.
Go to hudpemco.com. Then click on Georgia under Search for HUD Homes click on
Georgia. Register for a free account on the Home page of PEMCO’s BidSelect.
• Select Non Profit/Government Agency as your Account Type and HUD NSP Grantee as
your Agency type.
• In order to submit a bulk offer you will need to provide your HUD issued NAID and your
FID within your account profile.
• Go to Search Properties and select the following filter options. Select a Buyer Type of
Neighborhood Stabilization Program Grantee.
• Select a State and any other desired filter criteria.
• Within the search results, notice the NSP Grantee Discounted price is displayed.
• There are several discounts which depend on the number of properties purchased, as
well as the value of each property:
• Purchasing 10 to 49 properties at a time:
- Properties with as-is values greater than $100,000 will be given a 10%
discount off the as-is value of the property
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PEMCO, LTD. Management & Marketing Contractor for HUD
Ph: (404)-995-7111 Website:www.hudpemco.com
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Properties with as-is values of $100,000 or less will be given a 50% discount
off the as-is value of the property
Purchasing 50 or more properties at a time:
- All properties will be given an additional 5% discount (therefore, a 15%
discount off the as-is value for properties appraised at greater than $100,000;
and 55% discount off the as-is value for properties appraised at less than
$100,000)
- Properties with as-is values of $20,000 or less and that are considered by HUD
to be “demolition” properties will be sold for $100
Discounts are applied per bulk purchase therefore all properties you wish to receive
the bulk discount on must be submitted within the same bulk offer transaction.
From the property’s details page add the property to your Watchlist. (Each property
that you wish to include in your bulk purchase must first be added to your Watchlist.)
From your Buyer Center, go to your Watchlist and select the properties you want to
include in your bulk purchase and press the [Submit Bulk Offer] button.
A minimum of 10 properties must be selected in order to submit a bulk offer.
Within bulk offer submission screen, review the included properties and enter all
required information. You will be asked to enter your HUD issued NAID. Continue with
the offer submission process until you reach the confirmation page.
After the bulk offer has been submitted, each property included in your bulk purchase
will be displayed individually on your My Offers page in your Buyer Center. From this
page you can:
Print the bulk offer confirmation page from any of the individually displayed offers.
Print the individual contract packages for each property included in your bulk offer by
clicking on the link to the confirmation number (CONF-XXXXXXXXXX).
If necessary, you can cancel your bulk offer prior to midnight on the day that you
submitted the bulk offer. To cancel your bulk offer, press the [Cancel] button next to
any of the individual offers within your My Offers.
Q
A.
Which forms are required as part of the contract package?
Sales contract, form HUD-9548
Electronic Filing of 9548 Contract Addendum
Lead Based Paint Addendum (properties built before 1978)
Forfeiture & Extension Policy Addendum
Radon Gas and Mold Notice and Release Agreement, form HUD-9548-E (6/2004)
For your protection: Get a Home Inspection, form HUD-92564-CN (6/06)
Home Inspection Policy & Request Form
Q
A.
What is the process for submitting NSP Bulk Sale Contracts to PEMCO?
Please mail or deliver NSP Bulk Sale Contracts to the following address:
ƒ PEMCO, LTD
Piedmont Center
3525 Piedmont Road, NE, Bldg. 5, Suite 310
Atlanta, Georgia 30342
Attn: Bulk Sale Contracts Division
Q
A.
What are the earnest money requirements?
NSP Participants purchasing in the bulk sale initiative are not required to make earnest
money deposits on the properties.
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PEMCO, LTD. Management & Marketing Contractor for HUD
Ph: (404)-995-7111 Website:www.hudpemco.com
Q
A.
Will HUD pay broker commissions and closing costs?
No. Because you have your own NAID number to submit offers, you do not need a
representing broker, and thus there will be no broker commission. NSP Recipients will be
responsible for their own closing costs.
Q
A.
What is the closing timeframe?
Closings will be set to expire 30 days from the contract acceptance date.
Q
A.
Where can I learn more about submitting offers online and/or ask questions of HUD-PEMCO?
PEMCO has a NSP coordinator, Shannon Judd, to assist all NSP recipients and facilitate bulk
sales. She is available to meet with all NSP recipients. At the meeting she will answer any
NSP questions, as well as show attendees how to submit a contract, how to find eligible
properties, etc. These meetings can be scheduled at NSP recipient’s convenience. Please
contact Shannon and or complete the attached form and send to [email protected]
or via fax at 404-995-7110.
Q
As an NSP participant, who are my primary contacts at HUD-PEMCO?
ƒ Shannon Judd, [email protected], 678-521-5588
ƒ Kimiko Yamamoto, [email protected], 404-574-3498
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PEMCO, LTD. Management & Marketing Contractor for HUD
Ph: (404)-995-7111 Website:www.hudpemco.com
NSP Recipient Information
For purchase of HUD-Owned Properties in Georgia
Please return this form to Shannon Judd @ [email protected] or direct fax 404-995-7710
Government Agency Name
… Yes. Our NAID is:
… No. We …have …have not submitted the NAID
application package to PEMCO.
Do you have a NAID?
In what counties/areas are
you eligible to purchase with
your NSP Funds?
NSP Recipient Letter
… I have included a copy of our NSP Recipient Letter so that PEMCO may verify
my NSP recipient standing and eligibility to purchase HUD Homes in the NSP Bulk
Sale Initiative.
Primary Contact Person*
Title
Email Address
Telephone (
Secondary Contact Person*
Title
Email Address
Telephone (
)
)
Questions, Concerns,
Comments?
* The two contact persons listed will be the individuals who will receive correspondence from PEMCO, including
but not limited to: weekly spreadsheet of eligible properties, changes/updates to HUD’s NSP Initiative, etc.
These people will be responsible for distributing information as appropriate to the rest of their internal team.
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