HUD recently announced the latest version of its REO disposition program. It’s called Management and Marketing III (M&M III) and it seems to have some interesting new twists.
On June 1, HUD began contracting with Asset Managers who are charged with the responsibility of marketing REO properties within their geographic Homeownership Center (HOC). Asset Managers must be licensed real estate professionals with expertise in the neighborhoods in which REO property is located.
Asset Managers are instructed to allow all brokers an equal opportunity to list and sell HUD-REO properties.
If you are interested in listing HUD-REOs, you must work through the Asset Manager. A list of Asset Managers by geographic area is located HERE.
In order to participate in the M&M program, brokers must register for and receive a Name Address Identification number (NAID) before either listing or selling HUD-REO properties. If you already have a NAID number you don’t need to apply for a new one. Registration for a NAID number can be found HERE.
Centuries ago, when I sold real estate, HUD contracted with one broker in each area to manage their REO properties. Any other broker could sell HUD homes and receive a full 5% commission. In this new program, HUD homes are listed at up to 6% commission with the mandate that commissions be shared equally between listing and selling offices.
HUD currently has a lot of REO property to move and more are coming. I think it’s well worth the time and effort to get the NAID number and contact your local Assett Manager. Go get ’em.
(By the way, to search for HUD REO homes for sale, go to http://www.hudhomestore.com)