Valuation Review Pilot Program
• HUD is reviewing BPOs, appraisal reports, and Automated Valuation
Models (AVMs) in order to determine the best market value
• BPOs are currently being issued with all Initial Inspection work
orders for the following counties:
– CA: Riverside, San Bernardino
• New counties added effective 9-23-13: Alameda, Contra Costa, Los Angeles,
Orange, Sacramento, San Diego, San Joaquin
– WA: King, Pierce, Snohomish
• New county added effective 9-23-13: Clark
• Explanation of HUDHomestore’s $0 “As Is” value
– On some cases, the initial list price will be higher than the FHA as-is
appraised value
– Listing disclosure is provided
– Overbids: buyer will still be responsible for cash difference of any
overbid of appraised value
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Elimination of Backup Offers
• Effective with all new, relisted, and price reduced
properties on or after 9-23-13
– Note: this does not apply to Lottery Properties
– Does not apply to properties that are currently listed or
under contract, unless they get relisted after 9-23-13
• This means that any backup offers we are currently holding will
continue to be held until property closes or is relisted
• Applies only to below counties :
– CA: Alameda, Contra Costa, Los Angeles, Orange, Riverside,
Sacramento, San Bernardino, San Diego, San Joaquin
– WA: Clark, King, Pierce, Snohomish
• Note that this program may expand to other counties
in the future
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Why are we eliminating backup bids?
• Backup offers are “an expression of interest”
• By the time the originally accepted bid cancels
and we proceed to the next backup in line, the
backup buyer is often not interested anymore
• Eliminating backups will:
– Reduce continuous fallout of non-interested
backup bidders
– Potentially increase a higher net to HUD
– Provide all bidders an opportunity to rebid
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Disclosures
• Will be featured on HUDHomestore.com and must be
added to MLS
– Attention bidders, no backup bids will be accepted for this
property. This notification supersedes the selection made
in your electronic bid placed on HUDHomestore.com as
well as line 10 of the 9548 HUD Sales Contract. Due to this
policy change it is in the buyer’s best interest to place your
Best and Final offer. If the winning bid is canceled the
property will be relisted on HUDHomestore.com.
• Will provide a new MLS addendum with this new
backup bid verbiage that must be included in your MLS
• Note: HUD is NOT making any changes to the
HUDHomestore online bid submission form
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Email Notification – Bid Acceptance
• To all selling agents that submitted bids:
– Attention bidders, we have provisionally accepted
another offer on this property. Please be advised
that no backup bids will be accepted for this
property. This notification supersedes the
selection made in your electronic bid placed on
HUDHomestore.com as well as line 10 of the 9548
HUD Sales Contract. If the winning bid is canceled
the property will be relisted on
HUDHomestore.com.
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Email Notification – Bid Acceptance
cont.
• Recipient clarification:
– The first time the property is listed and a bid is accepted, the
notice goes to all other selling agents marked as backups for
that property. Then if that bid/contract is cancelled, the
property is relisted, and a new bid is accepted, the notice will
only go to those who submitted a bid in between that first
acceptance and the next acceptance.
– For relist properties, the notice only goes to those agents who
have submitted a bid marked as a backup since the last
acceptance.
• Note: the notice will be sent from a “send-only” email, so
recipients will not receive any response to inquiries
directed to the notice sender
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Email Notification – Bid/Contract
Cancellation
• To all selling agents that submitted bids on that
property (LLBs will be cc’d on this notice):
– Great News! (insert property address) is back on the
market! This property is being relisted on (insert
date). Your buyer has an opportunity to submit their
highest and best offer.
• Note: the notice will be sent from a “send-only”
email, so recipients will not receive any response
to inquiries directed to the notice sender
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