HUD home commissions (sales fee) to the selling agent will autopopulate on the sales contract at the rate offered by HUD. In general this rate will be 3%. The selling agent can always accept less for a HUD home commission (sales fee) payment. Remember that whatever amount you enter on your bid, the selling agent compensation will affect the net amount of the bid.
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Certain properties are designated "hard to sell" properties by HUD and these will have a base $1250 payment as the HUD home commission. This amount will autopopulate on your bid. In general, "hard-to-sell" properties are homes listed for less than $42,000 or that contain other issues. There is not a specific written policy for when the $1250 will apply.