Notice:  Due to the addition of 50 more houses to the auction HUD has moved the beginning of the auction to 4PM and the beginning of registration to 2pm
Cherry Hill, NJ
2349 West Marlton Pike
Opens: 04-Nov-98 @ 04:00 PM
Closes: 04-Nov-98 @ 09:00 PM

Registration Time: 2:00pm Day of Auction
Registration Place: Hilton at Cherry Hill
 

Auction Information Hotline 626-532-0027 Call Paul Howard at 609-488-8489H(anytime through the magic of call forwarding) or 854-7700(office) for information on local bidding.
To bid you must register - to register you must be prequalified.

The Department of Housing and Urban Development (HUD) is pleased to offer selected properties at an auction November 3 and 4 for Philadelphia, PA and Camden, NJ metropolitan areas. This event will consist of a large number of homes available to eligible buyers without regard to race, age, sex, religion, national origin, physical handicap or marital status.

 This represents an opportunity for you, the prospective real estate buyer. Free Buyer Awareness Seminars will be conducted to explain the bidding, financing and closing processes.

 We invite you to take advantage of this great opportunity to purchase a home by participating in this exciting auction event.
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 What is a HUD Home?

 The primary responsibility of HUD is the administration of programs concerned with this nation's housing needs, fair housing opportunities and developing communities. One of the programs HUD oversees is the Federal Housing administration (FHA), which provides federal mortgage loan insurance to facilitate home ownership and the construction or improvement of housing. Occasionally a lender is forced to foreclose on an FHA-insured single-family home, townhome or condominium when the buyers can no longer make payments. That lender can file a claim under FHA to have HUD pay the balance due on the mortgage and assume ownership of the foreclosed property. These properties, then, become HUD homes.
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Buyer Awareness Seminars

 Buying real estate at an auction is simple. In order to answer any questions you may have about buying through the auction process, we have scheduled seminars to give you an opportunity to ask questions of both the auction company and HUD personnel about the properties, bidding and financing. You can even take part in a practice auction to get a first-hand taste of the bidding process.

 It is highly recommended that you attend a seminar if you will be a bidder at the auction. HUD pays 3% commission on all auction properties and it is recommended that you bring your HUD registered broker with you to the seminar and auction.
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 Property Inspections

 Inspect the auction properties before bidding. You may inspect the properties by contacting your local real estate professional and asking about the HUD Homes Auction. Buyers are instructed to thoroughly inspect the properties before making bidding decisions. Remember, these properties are being sold on an "AS-IS, WHERE-IS" basis. You are responsible for inspecting the property and deciding what it's worth to you.
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Insured/Uninsured Sales

The sales contract shall not be contingent upon the purchaser's ability to obtain financing.

 Insured (I): All properties listed as "Insured" are eligible for FHA-insured financing. The interest rate to be charged on the loan is negotiable between the purchaser and the lender.

 Uninsured (U): All properties listed as "Uninsured" are eligible for cash sale or financed sale through a conventional source.
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 Financing Pre-qualification

In order to register to bid at the auction, you must provide a letter from a lender which states that you have been prequalified for a specific mortgage amount. Many lenders will be pre-qualifying prospective buyers from 5 pm to 8 pm at the Buyer Awareness Seminars. To participate in this pre-qualification process, prospective buyers must bring the following items to the seminar: original paycheck stubs, W-2 form(s) from place of employment, bank statements for the past three months from checking and savings accounts, current driver's license, work history and debt information.

 If paying cash for a property or using alternative financing, you must provide a letter from your bank, credit union, savings and loan or other source of funds certifying that you have sufficient funds to close the sale.
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 Early Closing Bonus

 HUD is offering a bonus on those properties where the net amount to HUD exceeds $5,000 and which close prior to the expiration of the closing time frame. Bonuses will be distributed as described below:

Properties Closing within 30 days of contract acceptance

$1,000 to owner occupants.

Properties Closing after 45, but before 60 days.

$500.00 to owner occupants.

General Information  

HUD reserves the right to remove or add properties to the auction should circumstances require or to postpone or cancel the Auction, at HUD's sole discretion.

HUD reserves the right to reject any and all bids, to waive any informalities or irregularities in any bid and assumes no responsibility for errors in listings.

Order of sale, bidding increments, recognition of bids and resolution of tie bids are at the sole discretion of the Auctioneer.

  Properties will be sold subject to HUD's acceptance of the final bid price and HUD signing a binding real estate purchase agreement. All properties will be sold on an as-is basis, with no warranties or guarantee.

Although information has been obtained from sources deemed reliable, HUD and Larry Latham Auctioneers, Inc., their representatives, attorneys, agents or subagents, make no guarantee as to the accuracy of the information herein contained or in any other property listing, files or advertising or promotional/publicity statement and material. Neither HUD nor the Auctioneer have any obligation to update this information. It is the responsibility of the buyer to inspect the properties prior to attending the auction to determine property condition, including any possible zoning or code violations and needed repairs.

The buyer may purchase a professional pre-purchase home inspection at buyer's cost.

  All properties are offered for sale to qualified buyers without regard to the prospective buyer's race, age, sex, religion, national origin, physical handicap or marital status. Interested persons should contact the broker of their choice.

  Some properties may be sold "ABSOLUTE," with no minimum and no reserve. This means that provided there is a minimum of two non-related, qualified buyers, the highest bid, whatever the amount, will be accepted.

Announcements made at the auction event take precedence over all other advertising, promotional/publicity statements, bidder's packages (as amended and supplemented) and other auction materials.

 HUD or the Auctioneer may collect information regarding the second highest bidder or other unsuccessful back-up bidders. The collection of such information does not create any option or other rights by such bidders.
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 Property Inspection

Properties may be inspected by interested parties when accompanied by a HUD registered broker and/or agent. Questions regarding this procedure may be directed to the Automated Auction Information at (626-532-0027).

All buyers or their hired inspectors are strongly encouraged to inspect all aspects of the properties prior to the auction. NO SALE WILL BE CONTINGENT UPON THE BUYER'S INSPECTION OF THE PROPERTY.

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Auction Bidder Registration
 

Only properly registered bidders will be eligible to bid at the auction. As a condition to registering for the auction, prospective bidders, including non-profit organizations, must:
 
1. Provide a letter from a HUD approved lender which states that, based on an in-house credit report and information from the purchaser, he or she has been pre-qualified for a maximum specified mortgage amount.
 
2. If paying cash for a property, provide a letter from the bidder's bank, credit union, savings and loan or other source of funds certifying that he or she has sufficient verifiable funds to close the sale within 30 days;
 
3. A prospective bidder will be required, at the time and place of the auction, to present separate evidence of earnest money for each property bidder intends to purchase in verifiable funds (cash, cashiers check or certified funds). Separate earnest money will be required for each purchase:
 
$1,000.00 for an Owner Occupant or Non-profit Organizations and $2000.00 per property purchased for an Investor. Cashiers checks should be made payable to the bidder. No personal checks or cash will be accepted.
 
NOTE: Failure to close may result in a forfeiture of the bidder's deposit.
 
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Financing
 

Buyers are responsible for obtaining their own financing. HUD will not finance the properties. It is strongly recommended that prospective buyers investigate available financing prior to the auction. Failure to obtain financing may result in the retention of all or a portion of the Buyer's Earnest Money, so be very open and thorough when talking with your lender during the pre-qualification process.

No contract will be accepted over the amount of the approved pre-qualification certificate for FHA-insured financing.

  NOTE: BEING PREQUALIFIED TO BID AT THE AUCTION DOES NOT MEAN THAT YOU ARE QUALIFIED FOR FINANCING. YOU MUST STILL QUALIFY FOR A MORTGAGE FROM A LENDING INSTITUTION AND DEMONSTRATE THE ABILITY TO REPAY THE LOAN.
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Broker Participation
 

REAL ESTATE BROKER PARTICIPATION IS ENCOURAGED. A commission equal to three (3%) percent of the contract price will be paid by HUD to a qualified licensed real estate broker, if and when that broker's properly registered prospect's bid is accepted and the buyer purchases and closes on an auction property. To qualify for the commission, the broker MUST:

 1. Be a duly and actively licensed real estate broker, and have registered with the HUD office. To register, brokers must sign HUD's Selling Broker Information (SAMS-1111) and Certification (SAMS-1111A) forms.

 2. On broker's letterhead, register the prospect ( BUYERS --Call Paul Howard 609-488-8489  or  E-mail  Paul, for registration information and to register)  with buyer's signature approving broker's representation, on broker's letter the following must be included:
 
1. License number

2. Brokerage address and phone number

3. Prospect's name, phone number and signature

Bring three (3) copies of the document to the auction.

3. Attend an inspection of the applicable property with the prospective buyer(s) prior to the auction.

4. Attend the auction with the prospective buyer(s), assist buyer, complete the HUD Sales Contract in the contract room and assist the buyer in closing the transaction, and bring proof of real estate licensing.

NOTE: Commission will be paid only to the first broker registering a prospect. Brokers must complete and sign their own registration forms. Properties shown as subject to reserve are sold contingent upon HUD's approval.

Commissions, if any, will be due and payable only following closing on the subject property. Brokers may purchase properties for themselves, but a commission will not be paid.

THERE WILL BE NO EXCEPTIONS TO THESE BROKER REQUIREMENTS. NO ONE is authorized to make exceptions to these policies. Any conflicts or problems arising from the broker participation process will be resolved solely and finally by the Auctioneer.
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Closing Deadlines

The successful buyer must sign all documents and contracts immediately upon the close of bidding on the purchased property. All sales are to close within 30 days to Investors and 60 days to Owner Occupant of HUD acceptance of HUD-9548 Sales Contract Offer.

Failure to meet these closing deadlines may result in cancellation of the contract and forfeiture of the
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Earnest Money.
Should sales transactions not close, or purchasers fail or refuse to perform their part of the sales contract promptly, at the time or in the manner specified, the  earnest money deposit , and any extension fees, MAY BE RETAINED by the Seller as liquidated damages.

The granting of one extension shall not obligate the Seller to grant additional extensions, and the Seller shall declare a default for the buyer's failure to close the sale upon the expiration of the original closing period or upon expiration of the extension.
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Standard Down Payment for Insured Properties

INVESTORS: The amount required for one unit is 25% of the bid amount and for duplexes, triplexes and quadruplexes, 15% of the bid amount.

OWNER OCCUPANTS: The down payment required for insured sales is 3% of the bid amount.
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Closing Costs

All sales may be closed by the designated HUD closing agents. Seller will pay closing agent's fee, deed preparation costs and other allowable charges customarily paid by HUD up to five percent (5%) for Owner Occupant Only. No closing costs will be paid to Investors.

Real estate taxes, fees (if any), as well as water and sewage charges (if any), will be prorated to the date of closing. As of date of closing, buyer assumes responsibility for ongoing assessments.
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Notice to Purchasers of Housing Constructed Before 1978

If the home you intend to purchase was built before 1978, it may contain lead-based paint (about 75% of all pre-1978 buildings do). The HUD inspection does not determine whether a home actually contains lead-based paint, but merely identifies whether there is defective paint in a home that might include lead content. Therefore, the only way to determine for sure that the home you intend to purchase is free of lead-based paint is to have both the interior and exterior tested by a qualified firm or laboratory. Contact your local health or environmental office for help. If you purchase a property with lead-based paint, HUD will not remove the paint. The buyer must pay for the cost of removal.