Buying HUD f/c as an agent

Foreclosures, Short Sales, Tax Foreclosures
1

I have been seriously mulling the idea of getting me RE license for various reasons (e.g., MLS access, supplemental income, networking), but the one “barrier” I have is with HUD foreclosures. I have bought several and would like to continue doing so, but I heard agents cannot buy HUD foreclosures. However, looking at my processors web site, the wording leads me to believe I can buy a HUD property so long as my broker is not the Listing Broker:

Q: What is a Listing Broker?
The M&M Contractor has engaged Listing Brokers to list the properties in the local Multiple Listing Services (MLS), place “For Sale” signs at the properties, report on the condition of the houses, supply keys and provide assistance to other brokers and agents who may sell the houses and generally assist to market the properties HUD owns in their areas. They are paid a fee by the M&M Contractor. They may also be a selling broker for the properties. However, Listing Brokers may not purchase any HUD property for themselves or for their relatives or other affiliates. Their agents and employees are likewise restricted from buying or selling to relatives or other affiliated persons or business entities. You may call the Listing Broker nearest you for assistance with any part of the HUD homes sales process. They often offer HUD home buying training seminars that you can attend.

Basically, I read this as saying if your broker is a HUD Listing Broker, they or you cannot buy a HUD property. But the wording suggests that as long as my broker is NOT a listing broker it should be okay.

Can someone who knows this clarify?

Thanks.

2

The broker you’re signed up with needs to have a HUD ID in order to place a bid. You have to enter the NAID before you sign up as an agent and it’s verified.

Not sure where you heard agents can’t buy HUDs. Call Southwest Alliance or whoever the asset managers are. In TX, we use Southwest Alliance and they’ve been helpful about clarifying their process.

3

Yeah, I sent SWA an email after this post. They finally got back to me and said I could buy HUDs as long as my broker was not the listing broker, so I think I got the answer I need. Specifically, they said:

Thank you for contacting us. If you broker is not the “Listing Broker”, then you may purches [sic] HUD properties for your self or family members.

BTW, Dee, I sent you a couple emails but have never got a response.

4

I was wondering why HUD would say you can’t buy because agents buy them all of the time. So yes, it’s on the buyer side and the listing agent cannot buy them.

PS

I use spamarrest.com, so if someone does to validate, their email will not go through. I was getting hundreds of spam each day. If I know your email, I can put you on the approved list.