When a HUD property is publicly listed for sale, it is usually placed on the multiple listing service and on HUD's website at www.hud.gov. At this point any qualified real estate broker who properly registers with HUD can show and sell the property. According to HUD, it is easy to qualify to become a selling agent. All the required information, resources and forms are available online. When a broker is registered and certified with HUD, he or she can write contracts on any HUD property listed for sale.
Contact the HUD Managing and Marketing contractor for your region. On the HUD website, scroll down the list of M&M contractors and find the one responsible for your state. Call them or click over to their website.
Apply for a NAID Number using the website of your M&M contractor. Create a new account application and provide your licensing state, federal ID or Social Security number and enter a password. Complete the application, review the information for accuracy and submit it.
Complete the "SAMS Form 1111 Broker Application" and the "SAMS Form 1111A Selling Broker Certification" using the website links provided by your M&M contractor. Print the forms and attach the additional documents requested on the second page of each form. Fill out and print an "IRS W-9 Request for Taxpayer Identification Number and Certification" if you do not already have a tax ID number. Send the forms via overnight mail to the office of your M&M contractor.
Wait for your certification to be issued before attempting to show or write a contract on a HUD home. Your M&M contractor will verify your licensing status in your state. When you are certified and registered with HUD, you may begin showing, advertising and making offers on HUD homes. You will receive a commission of up to 5% of the contracted sales price for any HUD home you sell.
In June 2010, HUD announced a new system of listing and maintaining its inventory of homes. Management and Marketing Contractors will slowly be phased out and replaced with Asset Managers and Field Service managers. It is expected that the certification of brokers will be mostly unaffected, but contact your currently listed M&M and check hud.gov for updates to the program status.
- U.S. Department of Housing and Urban Development: REO Management and Marketing Contractors
- U.S. Department of Housing and Urban Development: SAMS 1111 Broker application
- U.S. Department of Housing and Urban Development: SAMS 1111A Selling Broker Certification
- U.S. Internal Revenue Service: W-9 Request for Taxpayer Identification Number and Certification
- house in a hand image by dinostock from Fotolia.com