Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: HUD- Why Can't They Move into the 21st Century?

HUD- Why Can't They Move into the 21st Century?

Why does HUD still work in the 20th Century?  In a big way, HUD is on the cutting edge with having a program allowing all offers to be done online.  But then they revert backwards by only accepting original signatures in blue ink.  This is absurd!! 

So, once a bid is accepted, you have 2 business days to get the originals to their office.  Signatures, as I said, must be in blue ink.  There is a spot on the contract that asks for the name of the Broker and then the agent representing the buyer and then asks for a signature.  Each broker runs their offices differently, and my broker is one of those that says if he's going to hold your license, you represent him, and you can sign paperwork as the representative.  I've never had a problem with this with other foreclosure properties, even VA foreclosures and dealing with OCWEN. 

I'm lucky, and the HUD office is only about 20 minutes from me, so I didn't have to next day air anything for delivery.  I hand carried the contract into their office and it was accepted.  I then received a fax saying they needed my broker's signature.  I run to my office to get my broker's signature and get them the page.  I then get an email saying they could not "marry" the two documents together and the buyer's original blue signature needed to be on the same page as the broker's original blue ink... 

I called their office, but got voicemail, and left a message asking how I was supposed to get an original broker's signature on the same page as the buyer's when they already had my buyer's original signature.  They said I had to get the buyer to resign everything.  What?  Then I had to explain to them that my buyer was out of town.  They didn't care.  I explained again how I was doing everything in my power to get them what they wanted but giving me a 3pm deadline on Monday was doing no one any good when one of the signatures was unavailable.

After a few back and forth emails, she wouldn't pick up the phone and talk with me, HUD did give me an extension until Wednesday to get them the signatures...  What did I have to do?  I had to run all over town in the pouring rain with a 25 day old to get my broker's blue signature and then the buyer's blue signature to get it back to the HUD office.

To top things off, the buyer is going through Bank of America for his loan and they won't do anything without an executed contract from HUD.  I explained that HUD works on their own time frame and to please start the processing, in which they said no.  I pressed HUD for an executed contract, so what did I receive from them??  I received an email stating that I would receive the executed contract within 2 business days via email. 

What?  Why should I have to accept an email contract but they won't?  Why should we have to wait 2 business days when they've got everything and only need to sign 1 page?  We want to close this in December, and it would behoove HUD to close before year's end as well, but they act like they don't care and though they expected me to run around with a fire under my tush, they have no fire at all, only smoke.

HUD, get into the 21st Century and accept email contracts and who cares about Blue ink??  If you want to run your operation more efficiently and friendly, you should work with us who are wanting to remove the properties from your inventory!!  Get with it!!  I'm still waiting for my executed contract to turn in for the loan processing to begin...

I never get the "easy" deals... 

Comment balloon 38 commentsDonna Harris • December 12 2007 06:16PM

Comments

I think HUD just goes out of their way to be difficult.  I have done 2 foreclosures and don't think I will sell another.  What a nightmare.
Posted by Gary McAdams (GMAC Schwartz Property Sales) about 12 years ago
Gary, thanks for stopping by.  I try not to do foreclosures because the buyers always call me later with problems, but it's also our job to help them buy the house of their choice, so I still do it if that's what they want.
Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 12 years ago

HUD foreclosures were my bread and butter for many years when I first got in the biz about 10 years ago.  Their system has come a long way.  Do you remember when we used to have to make carbon copies of the contract??  The online system is much better but I'm with you on the 48 hour deadline for originals and such.  They waste more time emailing you about what you did not do or did not include.

Posted by Rhonda Burgess, Moving to Nashville TN Real Estate Specialist (Southern Living Realty Partners) about 12 years ago
Rhonda,  Ummm, carbon copies??  I haven't felt like a newbie in a long time since I'm in my 8th year, but carbon copies are before my time!!
Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 12 years ago
Donna,  Why doesn't HUD move into the 21st century?  That would be too realistic and the federal government is not realistic.  Years ago I took the VA training course - by the time it was over I decided people would bid over the market value because it was a foreclosure and I wasn't going to put my client through that drill, Karen www.e-virginiarealestate.com
Posted by Karen Kruschka, - "My Experience Isn't Expensive - It's PRICELESS" (RE/MAX Executives) about 12 years ago
Karen, Very interesting because in my market, when it's a foreclosure, most buyers come in WAY below market value and then they're surprised when HUD/VA/Bank won't take their offer.  I wish I could get buyers to bid at or near market value on these properties.  We lucked out with the property we got.  Lower than asking price, well below market, but it wasn't a low-ball offer.
Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 12 years ago
On a HUD foreclosure I did this past spring the HUD representative questioned my color of BLUE INK.. I couldn't believe that one.. so I lived in HUD HELL for 3 or 4 weeks. Not sure I want to go back!  No wonder they pay 5% .. you earn it!!
Posted by South Austin Real Estate Blog (Sky Realty South Austin) about 12 years ago
Gail, THey questioned your blue ink??  You've got to be kidding?  What, was it that teal color?  I guess some people just have nothing better to do when they're on salary and not commission...
Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 12 years ago
Welcome to the world of bidding on HUD foreclosures. Not defending HUD and you may not believe this, but the process has gotten much better as of late. It was much worse in the 80's, 90's and early 2000's. Thank God you were able to get a 2 day extension.
Posted by DDR Realty, Orange County NY (DDR Realty) about 12 years ago
I have never completed the process with a HUD home and am not so sure I want to!  Hopefully, things will continue to improve and maybe they will catch up with the times.  But then again, this is the government we are talking about.
Posted by Calvin Neely, Let's get you moving! (FLI Properties) about 12 years ago

Having worked as a contractor for the RTC this is not uncommon for government offices ... someone must have a job just looking to see if paperwork is done completely.  And think about the fact that we pay for this as taxpayers.

Posted by Allen C. Wright, NS, AHS, REPS (RealtyU) about 12 years ago
It's been many years since I have done a HUD sale and now I know why. I feel bad for you Donna especially carting around a newborn.
Posted by Jay McGillicuddy, Real Estate Broker (Berkshire Hathaway HomeServices Verani Realty) about 12 years ago
I am so pleased to say that I have never had to sell an FHA foreclosure - we have so few every come up here.....
Posted by Julie Chapman, New Homes Sales Lakeland Florida (DR Horton ) about 12 years ago
Donna - Here the official HUD contract came in triplicate with the carbon paper in between.  This was in the mid and late 1990s.  You know those carbons made the messiest and most unreadable copies.  It was a joke but you had to jump thru the hoops.  When I first starting selling HUDs, most agents did not want to deal with the hassle so I never really had a lot of competition bidding against my clients.  I used to love HUDs but now I will only do one if the client specifically asks about a particular HUD property. 
Posted by Rhonda Burgess, Moving to Nashville TN Real Estate Specialist (Southern Living Realty Partners) about 12 years ago
Donna - Here the official HUD contract came in triplicate with the carbon paper in between.  This was in the mid and late 1990s.  You know those carbons made the messiest and most unreadable copies.  It was a joke but you had to jump thru the hoops.  When I first starting selling HUDs, most agents did not want to deal with the hassle so I never really had a lot of competition bidding against my clients.  I used to love HUDs but now I will only do one if the client specifically asks about a particular HUD property. 
Posted by Rhonda Burgess, Moving to Nashville TN Real Estate Specialist (Southern Living Realty Partners) about 12 years ago

I could go on and on but I will keep it short:

HUD Sucks! 

Posted by Chad Baird (Re/Max Spirit) about 12 years ago

Derrick, VERY hard to believe...

Calvin, That's probably a good thing... stay away if you can!

Allen, As I said above, being salary and not commission, they're going to check, double check, and check again even when it's pointless.

Jay, Thanks!  She experienced Rain for the first time, but glad a friend gave me one of those covers that goes over the infant seat to protect her from the elements.

Julie, HUD foreclosures are not just FHA.  Almost any foreclosure that the bank doesn't want to deal with goes to HUD when the bank just wants their insurance from the property.

Rhonda, very interesting...

Chad, Exactly!

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) about 12 years ago
I've never encountered this problem but it would absolutely drive me crazy! Silly rules like this just make the process so much more difficult than it needs to be.
Posted by Kelly Sibilsky (Licensed Through Referral Connection, LTD.) about 12 years ago
I submitted a bid for a client on a HUD, jumped through all of the hoops, got the paperwork in as required.  Then after the contract was returned but before the home inspection was scheduled, the copper pipes were stolen.  The contract was subsequently cancelled by the buyer. It took over two months to get HUD to acknowledge the cancellation in writing so the buyer could get a refund of their earnest money.  Yet HUD had put the property back on the market.  If our office failed to respond to a request from HUD, we would be at risk of losing our HUD number.
Posted by Renee L. Norton about 12 years ago
I submitted a bid for a client on a HUD, jumped through all of the hoops, got the paperwork in as required.  Then after the contract was returned but before the home inspection was scheduled, the copper pipes were stolen.  The contract was subsequently cancelled by the buyer. It took over two months to get HUD to acknowledge the cancellation in writing so the buyer could get a refund of their earnest money.  Yet HUD had put the property back on the market.  If our office failed to respond to a request from HUD, we would be at risk of losing our HUD number.
Posted by Renee L. Norton about 12 years ago
Blue ink is required on most contracts. Black may not be original and it is necessary to have an original signed document on file. That is why blue ink is required.
Posted by John MacArthur, Licensed Maryland/DC Realtor, Metro DC Homes (Century 21 Redwood) about 12 years ago
Keep in mind that government isn't designed to be user friendly.  It is the ultimate extension of Byzantine bureaucracy.  You are dealing with people that can only be fired by an act of Congress... of course, the current Congress has really only been good at naming Post Offices and other meaningless things... HUD employees better look out. 
Posted by Lane Bailey, Realtor & Car Guy (Century 21 Results Realty) about 12 years ago
Donna, this kind of stuff drives me nuts!  At least you're a hop away from their office! 
Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) about 12 years ago
What is the deal with blue ink anyway? Don't understand that.
Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) about 12 years ago
I don't buy black pens anymore!
Posted by Wayne B. Pruner, Tigard Oregon Homes for Sale, Realtor, GRI (Oregon First) about 12 years ago
Wow.. what about if you are in an area such as I with a lot of second homes..... the sellers are from out of state... it could be a real mess!
Posted by Kim Carpenter, Lake Winnipesaukee REALTOR -Lake Winnipesaukee Real Estate, NH (Coldwell Banker) about 12 years ago
This is sooo... TRUE! I done my first HUD contract not long ago, and I am glad they pay 5%. You definitely have to work on ther time, and when you call them they will just say you will hear something in a day or two. I was so stressed out.
Posted by Kim Wilbourn, Your Local Alabama REALTOR (Kim Wilbourn Realty) about 12 years ago

The NEED for blue ink is outdated, some copiers now make any copy look like an original.. Is HUD going to have the ink tested to prove its an original?  I think not.  At some point we should be respected for being a member of an ethical profession.  (I know some are not, but you cant police morality). 

The blue ink that was questioned in my contract was a bluish-purple color, but it was blue.  Then again, the Optic Nerves that transmit color vary from person to person so color appearance is a variable from person to person.

Posted by South Austin Real Estate Blog (Sky Realty South Austin) about 12 years ago
Bureaucracy at its finest! Arg, this kind of thing drives me wild! I am with you Donna! Why do banks and Gov't entities have to make it so darn hard to get through the "blue" tape?!
Posted by Vanessa Stalets, REALTOR, Brentwood TN Homes, Real Estate (RE/MAX Elite) about 12 years ago
This is how the wheel spins. IMHO they dont care what we think because they have the properties and we want to sell them. They have us over a barrel and they know it.
Posted by Robert L. Brown, Grand Rapids Real Estate Bellabay Realty, West Mic (www.mrbrownsellsgr.com) about 12 years ago
Carbon paper?  Blue ink?  Shall we send it pony express or by telegram as well :)
Posted by Josette Skilling (Keller Williams Capital Properties) about 12 years ago
Wow, Donna, you have had a difficult time with this one. The one I did in July (on the 4th) went so smoothly, they weren't even particular about the blue ink (the Broker said).  The only glitch I had is when they asked for signatures on a page that only had instructions on it, so I had to run to get my buyer's signature on a page with no signature line.  
Posted by Ed Vogt, Grandville, MI Midwest Properties (Midwest Properties of Michigan) about 12 years ago

Donna:  Is there anything that GOV'T can do better than privatized business can?  My hat is always off to our Armed Forces (except the waste) but beyond that...

Posted by Michael (Mike) Elliott (Nottingham Real Estate Group) about 12 years ago
How about the closing companies that they have chosen?  In the last 3 plus years that service has not been great in our area.
Posted by Heather Fitzgerald, REALTOR Greenwood Indiana Real Estate (REALTY WORLD-Harbert Company, Inc.) about 12 years ago

What a joke. I hate stupid technicalities like that. As if it makes a difference when the signature was signed by the two parties. They were signed. Its such a nusiance just to try to please their ridiculous policies.

I once had a broker flip out at me because my buyer missed a couple dates on a Centerville House they were trying to buy. They signed everything, they had some dates, as if they signed page 3 of the purchase contract on a different day as page 4. People get too worked out over minor technicalities.

Posted by Alan Barker (Boomerang Leads) about 12 years ago
Blue Ink - that is so bizzarre - but sadly - it does not surprise me. Oh to have a goverment that would foster creativity in the workers.
Posted by Kevin McGrath, Long & Foster Real Estate Companies (Long & Foster Real Estate Companies- Fredericksburg/Spotsylvania) about 12 years ago

VA is also in the dark ages.  Every lender will allow the buyer to pay a portion of the buyer agency fee if the co-broke fee does not cover the entire amount due the buyer broker.  This is a problem where we have brokers who offer very low co-broke fees -- or in some cases there are flat fee mls only listings!   The buyer deserve representation.  I don't know if anyone has any clout in Active Rain, but this needs to be changed to be in line with HUD and other lending programs.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) about 12 years ago
There's gotta be a better way!
Posted by Joeann Fossland, Master Certified Coach to Motivated Agents (Advantage Solutions Group) about 12 years ago

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