Selling HUD Homes
Excerpts from 2007 First Preston Management, Inc.
Keys for HUD homes:
Keys are $3.00 and can be purchased at the KCRAR store.
Read the following for more information before you begin showing HUD homes. If your buyer
wants to place a bid on a listing you will need to be properly registered as described below.
What is a HUD Home?
The United States Department of Housing and Urban Development (HUD) oversees the Federal Housing
Administration (FHA), which provides insurance against default on home mortgages. If the payments are
not made on an insured FHA loan, the mortgagee forecloses, or accepts a deed-in-lieu, then files and FHA
insurance claim for the unpaid loan balance, and conveys title to the property to HUD. At this point, the
house becomes a HUD owned home. HUD did not foreclose or repossess the property, but acts as a
receiver when the conveyance occurs. The Managing and Marketing (M&M) Contractor then begins the
process of working to maintain and sell the properties according to HUD guidelines. The M&M Contractor
for KS, KY, MO, OK and TN, Pyramid Real Estate Services, subcontracts with First Preston to assist in
marketing HUD homes.
Who Can Sell a HUD Home?
Currently licensed HUD registered real estate brokers, and the agents associated with them, may show,
advertise, and submit offers on HUD owned properties. In order to register, the designated broker (the
broker of record for the firm) simply completes the HUD forms SAMS1111 and 1111A and attaches
documentation required, including copies of W-4, Brokers License with an expiration date of more than 30-
days out, Drivers License and Utility Bill or Phone Bill. Please print these forms from the web site
www.pyramidrealestate.com under the “Brokers” tab. Please register with HUD BEFORE working with a
prospective buyer. The same signature by the registered broker of record must be included on other HUD
forms, including the HUD-9548 Sales Contract, indicating the broker accepts responsibility to ensure that
the seller broker’s agents have complied with all the requirements those forms describe. When completed,
with all the necessary documents attached, send the registration package to the Regional Office for your
state. Separate registrations and signatories for each office in a multi-office firm are recommended. After
checking for accuracy and completeness, the registration package is forwarded to HUD who will issue to
the broker an official NAID number. (Name Address Identifier). Allow at least six – eight weeks for the
completion of this process.
The registration must be renewed at least annually and updated whenever any changes to the information
occur. If this is not done, HUD may deactivate the NAID number. Without an active NAID number the
broker and his/her agents are not eligible to bid on HUD homes.
Keys are also available through one of the following Local Listing Brokers:
Kansas LLB’s:
Allan Carpenter
Carpenter Realty Center
949 South Glendale Street
Suite 406
Wichita, Kansas 67218
Phone: 316.688.5080
Toll Free: 888.357.0220
Fax: 316.688.5081
Email: acarpenterhomes@msn.com
Missouri LLB’s:
Mike Phillips
Century 21 All-Pro
8904 NW 45 Highway
Parkville, MO 64152
Phone 816-505-3338
Mobile 816-529-2200
www.AllProC21.com
mike.phillips@century21.com
Gail Brown-Rozelle
Brown-Kortkamp Realty Company
4709 Delmar Blvd.
St. Louis, MO
Phone 314-367-4709
gbrozelle@brown-kortkamp.com
Melissa Schnieders
Re/Max Realty Professionals
10100 W. Maple
Wichita, KS 67209
Phone 316-554-2894
Fax. 316-721-6849
milissa@melissaschneiders.com
Additional Information:
About selling HUD Homes, the requirements and bidding process can be found here:
http://www.firstpreston.com/documents/guidebook_hud2.pdf