Alpine FP HUD Contract Package Instructions

Alpine/First Preston JV LLC  (Alpine FP) is the sole asset manager of HUD properties in Illinois

ALPINE FP must receive the original signed contract and all required addenda within 2 business days of the offer acknowledgement date.

Contracts NOT received within 2 business days are subject to offer acknowledgement CANCELLATION.

Follow our steps very closely to ensure accurate and timely completion of your Alpine FP Contract Package.

NOTE THAT THE SPONSORING/MANAGING BROKER MUST SIGN WHEREVER CONTRACT INDICATES “SIGNATURE OF BROKER

FOR HUD CONTRACTS:

  • Broker = Managing Broker
  • “Broker/Agent” = Selling Broker/Agent

You will receive an email from: autoresponse@hometracker.com with the Subject: “Offer Selected – Prepare Contract” that informs you that yours was the winning bid. (Check Spam folder if you have not received)

· From the “Offer Selected” email you can open the ATTACHED pre-populated Sales Contract and Addenda Package

· Look over the pre-populated information and make any changes if needed

· Complete any remaining or missing required information (if fields displayed on the contract are not highlighted, click on the ‘Highlight Fields’ button at the top right corner in Adobe to enable viewing of form fields, including required information)

· The Buyer chooses the Title Company they want to use and the BUYER SELECT CLOSING AGENT (BSCA) Form MUST BE SIGNED by that chosen Title Company 

· EARNEST MONEY MUST BE CERTIFIED FUNDS AND CHECK IS MADE PAYABLE TO THE BUYER’S CHOSEN TITLE COMPANY (THERE IS MORE INFORMATION ABOUT EARNEST MONEY IN STEP 4 BELOW BUT CALL OR E-MAIL THE LISTING AGENT IF YOU NEED ASSISTANCE)

· Print, review and obtain all required signatures and initials. Wet Signatures and Initials MUST BE IN BLUE INK.

· HUD now accepts DIGITAL SIGNATURES and you can EMAIL the completed contract package. Sales contracts, addenda and extensions may be accepted with electronic signatures from Buyers and Brokers when they are in compliance with the required guidelines. The electronic signatures should be authenticated with a number or statement that show the document was digitally signed along with the date it was signed. An indication of the electronic signature and date should be clearly visible when viewed electronically and in a paper copy of the electronically signed document.

Below are examples of acceptable electronic signatures:

In order to qualify as an electronic signer under the ESIGN Act and UETA, the system used to capture the transaction must keep an associated record that reflects the process by which the signature was created, or generate a textual or graphic statement (which is added to the signed record) proving that it was executed with an electronic signature. Make sure that no paragraphs are covered by the electronic signature box. Often part of the electronic signature is covering up the Purchaser’s name on line 13 of the Contract. Selling Agents need to either adjust the size of the electronic signature or move it over to the right or below the Purchaser’s printed name. Below is an example of what NOT to do:

A PRE-APPROVAL or PROOF OF FUNDS is required with ALL HUD contracts.

MAKE SURE THE BUYER’S LENDER OR FINANCIAL INSTITUTION IS AWARE OF THE FOLLOWING REQUIREMENTS FOR THESE DOCUMENTS

PRE-APPROVAL LETTER

  • Must be printed on the Lender’s letterhead and signed by the Lender
  • Must have the address of the HUD Property your buyer bid on
  • Must have HUD Case #
  • Must have Purchaser’s Full Legal Name (Include any middle initials, Jr., etc.) and must match Full Legal Name on sales contract
  • Must be dated within 30 days of the bid acceptance date
  • Must confirm the type of Financing and terms Purchaser has applied for
  • Finance type must match the finance type on the contract
  • Must confirm Purchaser has been approved for the loan and loan amount must meet or exceed the gross purchase price amount
  • Must confirm that a report of the Purchaser’s credit has been obtained and reviewed
  • If for some reason the loan amount does not cover the purchase price a Verification of Funds letter from the Purchaser’s Banking Institution will also be required for the difference

PROOF OF “CASH” FUNDS AVAILABLE (PROOF OF  FUNDS)

  • Copy of Bank Statement verifying funds are available
  • Account number may be “blacked out” on bank statements or other related documents
  • Purchaser’s name must be on the statement, regardless of document type
  • Statement must be dated within 30 days of bid acceptance date
  • Available Account Balance must meet or be greater than the gross Purchase Price

The ORIGINAL Earnest Money Certified Funds Check made PAYABLE TO THE TITLE COMPANY of Buyer’s choice, needs to be Overnighted or Hand Delivered to the Listing Brokerage along with a COPY of the sales Contract Package (including BSCA form) within 48 Hours of Bid Acceptance. Seller will not Execute Contract until Earnest Money has been delivered.

EARNEST MONEY REQUIREMENTS

· Check is made payable to Title Company of Buyer’s Choice

· Must say “Cashier’s Check” or “Official Check”

· Buyer’s name on check MUST match Sales Contract

· Write HUD Case # and Property Address on Check

· See Sample check below for example of how to complete

· Provide this information to buyer and have buyer bring it with them to the bank when acquiring the earnest money check

The following table lays out the amount of Earnest Money required by transaction type

           Transaction Type                    

Sales Price: $50,000 or less   =

Sales Price: $50,001 or more =

Vacant Lots = 

Good Neighbor Next Door (GNND) =

HUD Approved Non-Profits =

Earnest Money Required

$500

$1000

50% of the sales price

1% of Sales Price (min $500, max $2000)

No EM Required

E-mail contract to compassreooffers@gmail.com for a complimentary Contract Review

(If you’re an experienced HUD Selling Agent and feel confident that you don’t need assistance or for your package to be reviewed prior to submitting to Alpine FP you may skip this step)

You can also upload your contract for review at the following webpage on this site:

http://compassreoinc.com/agent-resources/upload-hud-contract-for-review/

You now have 2 options for submitting your completed Contract Package to Alpine FP

OPTION 1: ONLY IF BUYER IS SIGNING THE CONTRACT W/ DIGITAL SIGNATURE

Within 48 hours of your Electronic Bid Acceptance e-mail the following documents in a SINGLE PDF file in the below order

  • Completed and Electronically Signed Contract Packet
  • Pre-Qualification or Proof of Funds
  • PHOTO COPY of Earnest Money Check
  • Associated record that reflects the process by which the Electronic Signature was created

Send via e-mail to:

TYRONE PARKER: tparker@alpinecompaniesinc.com

CC the listing broker

If this is a Compass REO Inc. listing then CC (Marisa Barragan) with this email address: compassreooffers@gmail.com

OPTION 2

ALL WET SIGNATURE PACKETS MUST BE MAILED and must be signed and initialed in BLUE INK (DO NOT EMAIL wet signature packets)

Within 24 hours of your electronic bid acceptance you must overnight the completed original Contract Package to Alpine FP.

(The contract must arrive at Alpine FP within 48 Hours of Bid Acceptance)

  • Contract Packet
  • Pre-Qualification or Proof of Funds
  • PHOTO COPY of Earnest Money Check

Send By Overnight Mail to:

Alpine First Preston JV II, LLC.

Attn: HUD Contract Review

For Buyer Select Areas in the State of Illinois send to:

1321 Murfreesboro Pike, Suite 202

Nashville, TN 37217

Phone: 877-835-6799

___________________________________________

AFTER SUBMITTING ORIGINAL CONTRACT PACKAGE TO ALPINE FP

Send a Copy of Contract Package to: COMPASS REO INC

This should include:

  • COPY of Full Contract Packet
  • Buyer’s Attorney Information
  • THE ORIGINAL Earnest Money Check made out to the Title Company

You can e-mail or overnight this copy of the contract packet or bring to the HUD Listing Broker’s office along with the Earnest Money Check.

If the property is a Compass REO Inc. listing you can hand deliver to our office or send by overnight mail to:

Attn. Marisa Barragan

Compass REO Inc.

14 W Downer Pl. Suite A

Aurora, IL 60506

Email: compassreooffers@gmail.com

Please Note:

  • It will take approximately 5 days to get a signed executed contract from Asset Manager
  • Once you receive an executed contract the 30/45/60 days to close time frame begins. (Make Sure to Mark Your Calendar)

CASH PURCHASE = 30 DAYS TO CLOSE

FINANCE PURCHASE = 45 DAYS TO CLOSE

203(K) LOANS = 60 DAYS TO CLOSE

Disclaimer: Receipt or posting of the notice that a buyer’s bid has been “accepted” does NOT mean, explicitly or implicitly, that Alpine FP or HUD has entered into a binding real estate contract to sell the subject property to a buyer. Receipt of such notice simply acknowledges that a buyer’s bid appears to yield the highest net return to HUD of offers submitted, based on the information provided at the time the bid is electronically submitted for the advertised property. A binding contract is still subject to timely receipt of a properly completed and signed HUD Form 9548 and satisfaction of all other necessary HUD preconditions and requirements to a contract for purchase of Real Estate. Contracts are not considered binding until execution and delivery of the contract to the purchaser(s) or the purchaser’s agent by Alpine FP and/or its authorized affiliates. If required or requested documents are not received in proper form within the time frame provided (two business days from request), we reserve the right to deem the offer “non-responsive” and re-list the property for bidding or select a backup bidder.