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Pasley Realty Inc. |
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Property Sales & Management |
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Pasley Realty Inc. |
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Property Sales & Management |
Officer, Teacher Firefighter and Emergency Medical Technicians (EMT) Next Door Programs
HUD, in order to encourage
home ownership in selected areas is offering special programs to
Teachers, Law Enforcement officers, Firefighters and Emergency Medical
Technicians (EMT). These programs offer selected properties
located in revitalization areas (Click
here
for a current list, Adobe Acrobat is required to view.),
at a fifty percent (50%) discount from the
HUD appraised value (list price). (See Good Neighbor Next Door
Program for potential additional savings.) The properties are
advertised for seven days. During this period the prospective buyer
inspects the property and then submits a notice of intent. A lottery
number is assigned at the time of submission. At the end of the seven
day due diligence period a random drawing is held and the winner
selected.
To qualify for this program you must agree to live in the property s your principle residence for a period of three years following the purchase, view a HUD training video outlining program requirements, and be eligible as either a Law Enforcement Officer or Teacher as defined by HUD below:
A Law
Enforcement Officer-
is defined as an individual who is (1)
employed full time by a Federal, State, county or municipal
government; (2) sworn to uphold the law; (3) is empowered to
make arrests for violations of Federal, State, county, or municipal
agency; (please
note: this authority can not be limited to a building or facility,
with the exception of California state and Federal Correctional
Officers);
and (4) in good standing with the department.
You also qualify if you are a college or university police officer
with general power of arrest. Your employer must certify that you are
a full-time police officer with the general power of arrest. You don't
have to be a first-time homebuyer to participate. However, you
cannot own any other home at the time you close on your OND home.
You must agree to live in the HUD home as your only residence for
3-years after you move into it. A Law Enforcement Officer
participating in the OND program must grant HUD permission to confirm
the Officer's place of employment, home of record, and telephone
number.
A Teacher
-
is defined as an individual employed full
time by a Federal, State, County
or Municipal, Public or Private educational agency, who is in good
standing, and holds a current State-level certification, as a
classroom teacher or administrator in grades K through 12. Note
teachers must buy within their own school district. Charter and
Private Schools should call for more information. You cannot
own any other home at the time you close on your TND home. You
must agree to live in the HUD home as your only residence for 3-years
after you move into it. A
Teacher or Administrator participating in the TND program must grant
HUD permission to confirm the Teacher's place of employment, home of
record, and telephone number.
A Firefighter/EMT- is defined as an individual employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, a unit of general local government, or an Indian tribal government serving the area where the home is located. You cannot own any other home at the time you close on your OND/TND/FF/EMT home. You must agree to live in the HUD home as your only residence for 3-years after you move into it. A participat in hte OND/TND/Firefighter/EMT next doorprogram must grant HUD permission to confirm there place of employment, home of record, and telephone number.
Financing. On these special properties either conventional or HUD approved lenders may be used. If FHA financing is use a down payment of $100 may be made in lieu of the normal $2,000.
New properties are listed each Wednesday and bid winners are announced the following Wednesday.
Officers/Teachers/Firefighters and EMT's may now purchase a property off the General HUD Foreclosure List and still receive a 50% discount. Certain restrictions and conditions apply:
The subject property is located in a HUD-designated revitalization area.
No other acceptable offers have been received.
The officer or teacher must submit a contract bid at 100% of the listing price. The 50% discount will be applied at closing.
Governmental agencies and school districts are restricted to the initial five-day offering period.
Q: Why does HUD offer these properties at
such a dramatic discount?
A: HUD wants to strengthen America's communities and
build a safer nation by offering homeownership opportunities to law
enforcement officers through the Officer Next Door Program. It
helps to prevent crime and promotes neighborhood safety and security
by encouraging law enforcement officers to become homeowners and
residents in economically distressed communities. Teachers are
an integral part of our communities and are often the most important
mentors in a child’s life. Teachers reinforce the core values and
basic skills needed for successful and productive adult lives. The TND
program recognizes teachers for the value they bring to community and
family life, and provides them with increased homeownership
opportunities so that they can serve our most needy communities
outside the classroom.
Q: What makes a property eligible for
inclusion in the OND/TND/FF and EMT programs?
A: HUD offers homes located in designated revitalization areas.
Most of them are economically distressed.
HUD acquires a home in one of these areas if the homeowners default on
their FHA-insured mortgage and lose the home to foreclosure. Because
the demand for these homes is greater than the supply, the "winning
bid" is determined through a "lottery." These homes may need major
repairs.
Homes offered for sale in the program were previously insured
through the Federal Housing Administration (FHA) and then foreclosed.
HUD also reduces the down payment requirement to just $100 if the home
is purchased with an FHA insured mortgage.
Q: How long do I have after the offer to
have the property inspected?
A: All HUD Properties are sold AS IS. You may have
the systems professionally inspected at your own expense but you will
be responsible for the cost of connecting utilities and possibly
having the property re-winterized. You will be required to sign
a statement that reads in part: "Regardless of the test results, I
understand fully that HUD is not responsible for and will not perform
any repairs to the property.", The inspection may not be a
contingency of the offer. You are encouraged to inspect the
property before you make an offer to purchase.
Q: Will HUD pay closing cost?
A: Yes but the closing cost requested will be deducted
from the Officer's/Teacher's discount. Example: The list
price is $100,000 and the Officer/Teacher requests closing costs of
$2,000. With the 50% discount =
$50,000, at closing the teacher’s discount is reduced to $48,000 and
the amount due at closing is $48,000.
Q: What can an agent do for
me?
A: To start with, all HUD properties are sold AS
IS. You are responsible for inspecting the property before
you make your purchase offer. What you see is what you get. An
agent (such as Pasley Realty) can provide you access into the property
to thoroughly inspect it before you make the offer. We can also
advise you as to neighborhood property values. The agent will prepare
the purchase contract for you and assist you with pre-qualification
and obtaining financing. Secondly, this is a transaction involving a
U.S. Government Agency,
you just know that is not going to be a simple as it sounds, or should
be. You must comply with all OND/TND rules and regulations, fill out
the forms correctly, and know which ones to fill out. I will be
there to help and to make sure your interest are looked after too.
Q. Who pays the Agent?
A. HUD will pay the commission, but the amount is deducted from
the Officer's/Teacher’s discount. Example: The list price is $100,000
and the Officer/Teacher utilizes an agent with a commission of $6,000.
With the 50% discount =$50,000, at closing the teacher’s discount is
reduced to $44,000 and the amount due at closing is
$56,000.
Q: Will HUD pay both Commission and Closing Cost?
A: Yes. Just as described above, the combined cost of the
requested HUD paid closing cost and agents commission is deducted from
the amount of the Officer's/Teacher's discount.
Q: Do I have to use an agent?
A: No you don't have to have an agent, but HUD encourages
you to utilize the services of a real estate professional.
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Program Suspended Temporarily, See top of page
HUD has recently introduced the "$1 Home Sales to Local Governments" program. This program allows local governments to purchase aged HUD properties for $1 and use the sales proceeds to rehabilitate the community. However, if the local government elects not to purchase a property, it will be offered to Officers and Teachers, using a lottery award system, according to the guidelines set by the Officer/Teacher Next Door program.
Properties offered under this program will be designated as "Good Neighbor" Officer/Teacher listings. At the time of listing under this program, the price of the property will be reduced to 50% of the appraised value, and all eligible parties will receive an additional 50% discount (off of the already reduced price) upon closing the sale. Officers and Teachers will be eligible to purchase a property from this program even if it does not lie within a HUD designated revitalization area, but only "single unit" dwellings will be offered. If no offer is received during the Good Neighbor Officer/Teacher listing, the property will return to the public's extended listing. (We're talking some serious potential savings here folks!).
The timetable for the program goes as follows:
1. Local Government agencies will have the exclusive option to purchase the property for ten (10) days (always beginning with Monday and ending with the second Wednesday).
2. At this point, if the property is still available, the property will be made available exclusively to Officers and Teachers for ten (10) days (always beginning with the following Friday and ending with the second Sunday). The property will be offered on our website using the same lottery system as the standard OND/TND system AND YOU MUST COMPLY WITH ALL OND/TND RULES AND REGULATIONS TO BE ELIGIBLE.
3. Thereafter, if the property is still available, the property will return to the public's extended listing on the following Friday. If the property is not located in a revitalization area, Officers and Teachers will no longer be eligible to purchase it once it has returned to the extended listing.
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Good Neighbor Next Door Program information provided by the HUD website.