Is this correct,since HUD pays up to 5% of the closing cost?
Answer SHERRA– Bids on HUD Homes are placed on pre-printed HUD Bid Forms and MUST be completed per HUD’s rules & regulations! The form has a place for the Bid Amount to be entered, a place to enter the amount of the Commission that HUD will pay the Realtor on Closing AND the dollar amount of the Buyer’s Closing Costs that HUD is being asked to pay. The Bid Form provides for arriving at a NET TO HUD dollar amount, which is derived by subtracting the dollar amount that HUD is being asked to pay for Commissions AND Buyer’s Closing Costs from the dollar amount of the Bid. HUD then accepts Bids based upon their BEST Net Proceeds! HUD will NOT accept any DISCLAIMERS or Supplements to their Bid Form–at last none other than some that THEY require. Have your Realtor AND Loan Officer (together) sit down with you & go over your Bid and get a line-by-line explanation of the BID you’ve sent in AND get a GOOD FAITH ESTIMATE on the loan you’ll need to complete this transaction with HUD. Both of the
