TABLE OF CONTENTS HUD RULES FOR REO PROPERTIES (REV 1) 10/95 A) FAXED OFFERS B) FORMS NECESSARY TO MAKE AN OFFER C) FULL PRICE OFFERS D) MULTIPLE OFFERS FROM ONE BUYER E) SALES CATEGORIES F) EARNEST MONEY DEPOSIT G) DELIVERY OF EARNEST MONEY H) BID RESULTS I) EXTENDED LIST J) BACKUP OFFERS K) EXTENSION OF ESCROW L) EARNEST MONEY REFUND POLICY M) $500 DOWNPAYMENT CERTIFICATES N) REGISTRATION OF NEW BROKERS O) LOCK BOX KEYS P) REBATES Q) ADVERTISING BY BROKERS HUD RULES FOR REO PROPERTIES (REV 1) 10/95 LISTING PRICE IS HUD'S ESTIMATE OF FAIR MARKET VALUE. HUD RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS AND TO WAIVE ANY INFORMALITY OR IRREGULARITY IN ANY BIDS. ALL PROPERTIES ARE OFFERED IN THEIR PRESENT CONDITION--NO WARRANTY AVAILABLE. SOME PROPERTIES MAY CONTAIN CODE VIOLATIONS. ACCEPTANCE OF SALES OFFERS WILL BE GIVEN TO OFFERS PRODUCING THE GREATEST NET RETURN TO HUD. (A) FAXED OFFERS: EFFECTIVE AS OF THE DATE OF THIS NOTICE FAXED BIDS WILL NO LONGER BE ACCEPTABLE (B) FORMS NECESSARY TO MAKE AN OFFER: 1. SALES CONTRACT (HUD 9548) DATED 3/94, SALES CONTRACT FORMS DATED PRIOR TO 3/94 ARE NOT ACCEPTABLE. 2. LEAD BASED PAINT ADDENDUM (FOR ANY PROPERTIES BUILT PRIOR TO 1978) 3. PREQUALIFICATION LETTER FROM A MORTGAGE LENDER FOR THE PURCHASER. (PLEASE REFER TO CIRCULAR LETTER 95-4 FOR COMPLETE DETAILS) C.L. 95-4 CAN BE ACCESSED THROUGH THE MAIN MENU OF THE BULLETIN BOARD. THE PREQUALIFICATION LETTER MUST BE THE EXACT FORMAT CONTAINED IN CIRCULAR LETTER 95-4. BUYERS PAYING CASH MUST SUBMIT A LETTER OR OTHER DOCUMENTS FROM A FINANCIAL INSTITUTION TO VERIFY ENOUGH LIQUID ASSETS ARE AVAILABLE TO CLOSE THE TRANSACTION. 4. A COPY OF THE $500 DOWNPAYMENT CERTIFICATE IF INDICATED ON THE OFFER TO PURCHASE AS A $500 DOWNPAYMENT. THE ORIGINAL WILL BE SUBMITTED TO THE LENDER FOR LOAN PROCESSING ONCE AN OFFER IS ACCEPTED. SALES CONTRACT MUST BE FILLED OUT COMPLETELY ACCORDING TO INSTRUCTIONS ON THE COVER PAGE OF THE CONTRACT. WHEN PURCHASING WITH 203K FINANCING, PLEASE ANNOTATE 203K ON LINE 4 OF THE CONTRACT. PLEASE HAVE BUYER/BUYERS INITIAL LINE 12 OF THE CONTRACT THAT THEY UNDERSTAND LIQUIDATED DAMAGES. TYPE OR PRINT NAMES, SOCIAL SECURITY NUMBERS AND SIGN IN THE PURCHASER'S BOX. PLEASE HAVE PURCHASERS COMPLETE ADDRESS AND ZIP CODE AND TELEPHONE NUMBER. PLEASE HAVE THEM FILL IN THE DATE THEY SIGN THE CONTRACT. BROKERS MAY NOT HAVE BLANK PURCHASE CONTRACTS SIGNED BY BUYERS. BROKERS NAME AND ADDRESS MUST BE COMPLETE. BROKER'S SSN NUMBER OR FID, SAMS SL-NA NUMBER (IF YOU ARE A NEW BROKER, SAMS FORM 1111 MUST BE ATTACHED), BROKERS PHONE NUMBER AND SIGNATURE OF BROKER. SELLING AGENT'S NAME AND TELEPHONE NUMBER MUST BE ON THE NEXT LINE. (SEE FAR RIGHT HAND SIDE OF CONTRACT FOR THE FOLLOWING LINES) LINE 3 ON THE FAR RIGHT OF THE CONTRACT IS YOUR BID AMOUNT. LINE 4 IS NOT USED (WE DO NOT HAVE A REPAIR ESCROW) LINE 5 IS FOR CLOSING COSTS (3% MAX UNLESS OTHERWISE SPECIFIED ON THE LIST). LINE 6 IS FOR COMMISSION (6% MAX) LINE 7 IS THE NET TO HUD (LINE 3 MINUS LINE 5 & 6) PLEASE DO NOT USE PENNIES ANYWHERE ON THE CONTRACT FIGURE THE OFFER ON THE NEXT LOWEST DOLLAR AMOUNT. FOR EXAMPLE: $75,501.00 $75,501 X .03 = 2265.03 ( ELIMINATE THE CENTS AMOUNT .03) - 2,265.00 75,501 X .06 = 4530.06 ( " " " " .06) - 4,530.00 NET TO HUD IS $68,706.00 ALL FORMS ARE TO BE PROPERLY COMPLETED, SIGNED, AND INITIALED WHEN REQUIRED BY PURCHASER AND BROKER. ANY AND ALL CHANGES TO THE CONTRACT MUST BE INITIALED BY THE PURCHASER AND BROKER. PLEASE DO NOT USE WHITE OUT. AN INCOMPLETE PACKAGE, OR A BID PACKAGE CONTAINING ANY UNAUTHORIZED ALTERATION MAY PRECLUDE CONSIDERATION OF THE BID AND THE NEXT HIGH BID WILL BE CONSIDERED. PLEASE CHECK YOUR FIGURES TO MAKE SURE YOU HAVE CALCULATED CORRECTLY. AN INCORRECT CALCULATION MAY RESULT IN YOUR OFFER BEING REJECTED AND THE BACKUP OFFER BEING CONSIDERED. OFFERS THAT HAVE CALCULATIONS THAT EXCEED THE MAXIMUM THAT HUD WILL PAY FOR CLOSING COSTS OR COMMISSIONS MAY BE REJECTED. ACCEPTABLE OFFERS SHALL BE CONTINGENT UPON A MAXIMUM 45 DAY ESCROW, 60 DAYS FOR 203K OFFERS. ALL PROPERTIES WILL BE INITIALLY AVAILABLE ONLY TO OWNER-OCCUPANT PURCHASERS, AS SPECIFIED ON EACH LIST. CONTRACTS SUBMITTED ON BEHALF OF NON-OWNER OCCUPANTS OR INVESTORS DURING THE INITIAL OWNER-OCCUPANT PERIOD WILL BE RETURNED TO THE BROKERS. THE "(O/O)" CODE AFTER THE ADDRESS INDICATES THAT THE PROPERTY IS AVAILABLE ONLY TO OWNER-OCCUPANT PURCHASERS. (C) FULL PRICE OFFERS: TO QUALIFY AS A FULL PRICE OFFER THE GROSS OFFERING PRICE MUST EQUAL OR EXCEED THE LISTING PRICE, THE SALES COMMISSION CANNOT EXCEED SIX PERCENT; REQUESTED FINANCING/CLOSING COSTS (LINE 5 OF THE SALES CONTRACT) CANNOT EXCEED THREE PERCENT (UNLESS OTHERWISE SPECIFIED ON THE LIST). THE ENVELOPE CONTAINING THE OFFER MUST BE MARKED "FULL PRICE OFFER." UPON OPENING SUCH AN ENVELOPE, IF IT IS NOTED THAT THE ENCLOSED OFFER DOES NOT QUALIFY AS A FULL PRICE OFFER, THE ENVELOPE SHALL BE SO NOTED, RESEALED AND SUBSEQUENTLY REOPENED AT THE REGULAR BID OPENING. DETAILS OF THE OFFER SHALL NOT BE DISCLOSED PRIOR TO ITS OPENING. ENVELOPES NOT MARKED "FULL PRICE OFFER" SHALL BE HELD AND OPENED AT THE REGULAR BID OPENING. THERE WILL BE A BID OPENING FOR FULL PRICE OFFERS ON MONDAY, WEDNESDAY, AND FRIDAY PRIOR TO THE FINAL OFFER DATE, AT 2:00 P.M. ALL FULL PRICE OFFERS THAT ARE RECEIVED ON THE PREVIOUS DAY OR ON THE DAY OF THE BID OPENING PRIOR TO 2:00 P.M. WILL BE OPENED AT THIS TIME. ANY OFFERS RECEIVED AFTER 2:00 P.M. SHALL BE HELD UNTIL THE FOLLOWING FULL PRICE OFFER ACCEPTANCE DAY. IF THE PROPERTY HAS NOT BEEN SOLD DURING THE TIME FULL PRICE OFFERS WERE ACCEPTED, IT WILL GO TO THE REGULAR BID OPENING. PROPERTIES REMAINING UNSOLD AFTER THE REGULAR BID OPENING THEN BECOME AVAILABLE UNDER THE EXTENDED LISTING UNTIL RELISTED. (D) MULTIPLE OFFERS FROM ONE BUYER: IF A PROSPECTIVE BUYER SUBMITS A BID ON MORE THAN ONE PROPERTY, HUD RESERVES THE RIGHT TO ACCEPT THE OFFER WHICH RESULTS IN THE GREATEST NUMBER OF PROPERTIES BEING SOLD. ANYTIME MULTIPLE OFFERS ARE MADE, A LETTER FROM THE BROKER MUST BE INCLUDED WITH EACH OFFER SHOWING THE ORDER OF THE BUYERS PREFERENCE. BUYERS SHOULD BE TOLD THAT MULTIPLE OFFERS MAY RESULT IN THEIR FIRST CHOICE NOT BEING ACCEPTED IF IT IS IN THE BEST INTEREST OF HUD, EVEN IF THEY HAD THE HIGHEST BID ON THEIR FIRST CHOICE. IF ONE OF THE MULTIPLE BIDDER'S OFFERS IS THE ONLY ACCEPTABLE ONE ON A PROPERTY, THEN THAT OFFER MAY BE THE ONE ACCEPTED. (E) SALES CATEGORIES: SALES ARE OFFERED IN 3 CATEGORIES; 1. FHA INSURED (ELIGIBLE FOR FHA INSURANCE) 2. ALL CASH (FHA INSURANCE IS NOT AVAILABLE) MUST HAVE ALL CASH OR A CONVENTIONAL LOAN. 3. ALL CASH (UNINSURED), ELIGIBLE FOR FHA 203K FINANCING. THESE PROPERTIES DESIGNATED AS ELIGIBLE FOR 203K FINANCING MUST HAVE A MINIMUM OF $5000 IN REPAIRS. HUD WILL POST THE 203K COST ESTIMATE TO MAKE THE PROPERTY ELIGIBLE FOR FHA INSURANCE ON THE LIST. BROKERS ARE RESPONSIBLE TO ASSURE THAT THEIR BUYER IS PREQUALIFIED FOR THE FULL AMOUNT OF THE LOAN, WHICH IS THE SALES PRICE PLUS THE REHABILITATION COSTS, BEFORE SUBMITTING THEIR BID. THE PREQUAL LETTER SHOULD BE FOR THE FULL AMOUNT OF THE LOAN. THE CONTRACT OFFER TO PURCHASE SHOULD NOT CONTAIN ANY DOLLAR FIGURES IN THE OFFER FOR THE REHABILITATION ESTIMATE. THE CONTRACT SHOULD BE WRITTEN AS A PURCHASE IN AS IS CONDITION WITH 203K FINANCING. (F) EARNEST MONEY DEPOSIT: REQUIRED EARNEST MONEY DEPOSIT ON ALL SALES IS $2000 UNLESS OTHERWISE INDICATED ON INDIVIDUAL LISTING. IF A $500 DOWNPAYMENT CERTIFICATE IS USED, EARNEST MONEY IS REDUCED TO $1000, PROVIDING A COPY OF THE CERTIFICATE IS PRESENTED WITH THE OFFER. (G) DELIVERY OF EARNEST MONEY: EARNEST MONEY MUST BE DELIVERED TO ESCROW BY THE BROKER BY CLOSE OF BUSINESS THE NEXT BUSINESS DAY AFTER NOTIFICATION BY THE HUD OFFICE OR THE OFFER WILL BE AUTOMATICALLY CANCELLED AND THE BACKUP OFFER CALLED. NOTIFICATION TO THE BROKER SHALL BE CONSIDERED DELIVERED ONCE THE HUD OFFICE SPEAKS TO A PERSON OR LEAVES A MESSAGE AT THE PHONE NUMBER PROVIDED ON THE SALES CONTRACT. OFFERS ACCEPTED FOR PROPERTIES IN IMPERIAL COUNTY SHALL BE ALLOWED TWO BUSINESS DAYS TO GET MONEY TO ESCROW. THIS REQUIREMENT WILL BE STRICTLY ENFORCED AND THERE WILL BE NO EXCEPTIONS. HUD WILL NOT BE HELD RESPONSIBLE WHEN THE EARNEST MONEY IS NOT DELIVERED ON TIME AND THE ESCROW IS CANCELLED. THERE ARE NO ACCEPTABLE EXCUSES. EARNEST MONEY MUST BE IN THE FORM OF A CASHIER'S CHECK OR MONEY ORDER MADE OUT TO THE ESCROW COMPANY. (H) BID RESULTS: FULL PRICE OFFERS AND BID OPENING RESULTS ARE POSTED ON THE BULLETIN BOARD THE SAME DAY THE BIDS ARE ACCEPTED.FOR PROPERTIES ON THE EXTENDED LIST SOLD IS ANNOTATED NEXT TO THE PROPERTY ADDRESS ON THE EXTENDED LIST ON THE BULLETIN BOARD THE SAME DAY THE BID IS ACCEPTED. (I) EXTENDED LIST: PROPERTIES NOT SOLD BY THE BID OPENING DATE WILL NORMALLY BE PLACED ON THE EXTENDED LIST. OFFERS PRESENTED FOR THE EXTENDED LIST ARE OPENED DAILY AT 2:00 P.M. AND BROKERS NOTIFIED THE SAME DAY. ONCE A PROPERTY IS SOLD FROM THE EXTENDED LIST, "SOLD" SHALL BE POSTED BY THE PROPERTY ADDRESS. (J) BACKUP OFFERS: BACKUP OFFERS ARE ONLY TAKEN FOR PROPERTIES ALREADY SOLD UNTIL THE FINAL OFFER DATE ON THE CURRENT LIST. AFTER THE FINAL OFFER DATE AND BID OPENING, PROPERTIES GO ON THE EXTENDED LIST AND THEN OFFERS WILL BE TAKEN FOR THOSE ON THE EXTENDED LIST ONLY. PROPERTIES SOLD FOR FULL PRICE THAT FALL OUT OF ESCROW AND HAVE NO BACKUPS WILL BE RELISTED. (K) EXTENSION OF ESCROW: THE FORM REQUESTING AN EXTENSION TO THE ESCROW PERIOD AND THE MONEY MUST BE TAKEN TO THE HUD OFFICE AT LEAST FIVE CALENDAR DAYS PRIOR TO THE CLOSING DATE ACCORDING TO THE CONTRACT. FAXED EXTENSION REQUESTS ARE UNACCEPTABLE. EXTENSION REQUESTS ARE TO BE MADE IN 15 DAY INCREMENTS AT $25 PER DAY FOR A TOTAL OF $375. TRANSACTIONS THAT CLOSE PRIOR TO THE FIFTEEN DAYS SHALL HAVE ANY OVERAGES CREDITED TO THE BUYER AT CLOSING. HUD WILL THEN APPROVE OR DISAPPROVE THE EXTENSION AND NOTIFY ESCROW. IF AN EXTENSION IS NOT REQUESTED WITHIN THE FIVE DAY TIMEFRAME, HUD HAS THE RIGHT TO CANCEL THE OFFER AND CALL THE BACKUP WITHOUT NOTIFYING THE BROKER. MONEY WILL BE IN THE FORM OF CASHIER'S CHECK OR MONEY ORDER MADE OUT TO THE ESCROW COMPANY. BROKERS/AGENTS ARE HELD RESPONSIBLE TO FOLLOW THEIR ESCROWS TO MAKE SURE THEY CLOSE ON TIME AND DON'T EXCEED THEIR ESCROW PERIOD. IN THE PAST, AGENTS HAVE NOT FOLLOWED UP ON THE CLOSING TIMEFRAMES REQUIRED AND REQUESTED EXTENSIONS FROM HUD. THIS PRACTICE WILL NO LONGER BE ACCEPTABLE. TRANSACTIONS WHERE AGENTS DO NOT REQUEST EXTENSIONS IN ADVANCE OF THE REQUIRED TIMEFRAME SHALL HAVE THEIR TRANSACTIONS CANCELLED BY HUD. AGENTS WILL NOT BE CALLED AND ASKED IF THEY WANT AN EXTENSION. UNFORTUNATELY, HUD DOES NOT HAVE THE STAFF TO DO WHAT BROKERS ARE RESPONSIBLE FOR. CANCELLATION OF ESCROW A LETTER FROM THE LENDER MUST BE RECIEVED BY HUD IN ORDER FOR AN ESCROW TO BE CANCELLED. HUD WILL CONSIDER A REFUND OF THE EARNEST MONEY DEPOSIT ACCORDING TO THE TYPE OF SALE, TYPE OF BUYER AND REASON FOR CANCELLATION. IF AN ESCROW HAS BEEN EXTENDED AND HAS TO CANCEL FOR ANY REASON, THE EXTENSION MONEY PAID TO EXTEND THE ESCROW WILL NOT BE REFUNDED UNDER ANY CIRCUMSTANCES. (L) EARNEST MONEY REFUND POLICY: CONCERNS TWO TYPES OF PURCHASERS. IT IS THE BROKERS RESPONSIBILITY TO ASSURE THAT PROSPECTIVE BIDDERS CLEARLY UNDERSTAND THE POLICY BELOW. EARNEST MONEY MAY ONLY BE REFUNDED WHEN THE BROKER SUBMITS DOCUMENTATION PRIOR TO THE DATE ESCROW IS SCHEDULED TO CLOSE TO VERIFY WHY THE TRANSACTION CANNOT BE CONSUMMATED. IT IS THE BROKER'S RESPONSIBILITY TO PROVIDE ADEQUATE DOCUMENTATION TO HUD, SUCH AS THE LENDERS CREDIT DENIAL, PRIOR TO THE REQUIRED CLOSING DATE. FAILURE TO SUBMIT THIS DOCUMENTATION TO HUD SHALL RESULT IN FORFEITURE OF THE EARNEST MONEY DEPOSIT. THE BROKER SHALL BE HELD LIABLE FOR PROTECTING THE INTEREST OF THEIR CLIENTS. 1. OWNER-OCCUPANTS 2. NON-OWNER OCCUPANTS THIS POLICY ALSO CONCERNS TWO TYPES OF SALES: 1. FHA INSURED SALES 2. UNINSURED OR ALL CASH SALES OWNER-OCCUPANTS: 1. FHA INSURED SALES: ONE HUNDRED PERCENT OF THE EARNEST MONEY WILL BE REFUNDED TO THE PURCHASER IF A GOOD REASON EXISTS FOR THE SALE NOT CLOSING. 2. UNINSURED OR ALL-CASH SALES: FIFTY PERCENT OF THE EARNEST MONEY WILL BE REFUNDED IF THE PURCHASER CANNOT OBTAIN FINANCING. IF THE SALE DOES NOT CLOSE FOR ANY OTHER REASON, NO REFUND OF EARNEST MONEY IS MADE. 3. ON EITHER TYPE OF SALE NO REFUND IS MADE IF A GOOD FAITH EFFORT TO OBTAIN FINANCING HAS NOT BEEN ATTEMPTED. INVESTORS: 1. FHA INSURED PROPERTIES: FIFTY PERCENT OF THE EARNEST MONEY WILL BE REFUNDED IF HUD OR A DE UNDERWRITER DETERMINES THE PURCHASER TO BE AN UNACCEPTABLE BUYER. IF THE SALES DOES NOT CLOSE FOR ANY OTHER REASON, NO REFUND OF THE EARNEST MONEY IS MADE. 2. UNINSURED OR ALL-CASH PROPERTIES: NO REFUND OF THE EARNEST MONEY IF THE SALE FAILS TO CLOSE REGARDLESS OF THE REASON. REASONS FOR AN OWNER-OCCUPANT, INSURED SALE, NOT TO CLOSE AND WITH ONE HUNDRED PERCENT REFUND OF THE EARNEST MONEY: 1. A DEATH IN THE IMMEDIATE FAMILY 2. A RECENT SERIOUS ILLNESS THAT HAS RESULTED IN SIGNIFICANT MEDICAL EXPENSES OR LOSS OF INCOME. 3. LOSS OF JOB OR INCOME 4. HUD OR A DE UNDERWRITER DETERMINE THE PURCHASER IS NOT AN ACCEPTABLE BORROWER. 5. OTHER EQUALLY GOOD CAUSE, AS DETERMINED BY THE HUD OFFICE (M) $500 DOWN PAYMENT CERTIFICATES: ARE DISTRIBUTED AT HOMEBUYERS FAIRS ONLY. THE CERTIFICATE WILL AUTOMATICALLY REDUCE THE EARNEST MONEY DEPOSIT TO $1000.00. THIS CERTIFICATE IS TO INFORM THE LENDER THAT HUD WILL ALLOW AN FHA LOAN WITH ONLY $500 DOWNPAYMENT. THIS IS NOT A CREDIT AT CLOSING, CASH, OR A BONUS TO BE PAID TO ANYONE. ALL CONDITIONS CONTAINED ON THE $500 DOWNPAYMENT CERTIFICATE MUST BE MET. SEE "REO NEWS" ON THE BULLETIN BOARD FOR INFORMATION ON WHEN $500 DOWNPAYMENT CERTIFICATES WILL BE AVAILABLE. PLEASE DO NOT CALL THE HUD OFFICE FOR CERTIFICATES SINCE NONE ARE AVAILABLE THERE. (N) REGISTRATION OF NEW BROKERS: PICK UP REGISTRATION PACKAGE AT THE HUD OFFICE FROM THE RECEPTIONIST OR FAX A REQUEST TO (619) 557-6296 OR (619) 557-7145. (O) LOCK BOX KEYS: CALL PROPERTY MANAGER FOR AN APPOINTMENT TO PURCHASE A LOCKBOX KEY. KEYS ARE $50 ONE-TIME CHARGE WITH A $20 REFUND IF KEY IS RETURNED. BROKERS MAY REGISTER AND PURCHASE A KEY WITH THE PROPERTY MANAGER BY CALLING (619) 498-3449 TO MAKE AN APPOINTMENT. (P) REBATES: IT IS FIRMLY AGAINST FHA LENDING POLICY FOR REAL ESTATE AGENTS TO GIVE REBATES OR CASH BACK TO BUYERS. AGENTS CAUGHT DOING THIS SHALL HAVE THEIR BROKER DISQUALIFIED FROM SUBMITTING BIDS FOR A PERIOD OF NO LESS THAN TWELVE MONTHS. (Q) ADVERTISING BY BROKERS: SELLING BROKERS MAY, AT THEIR OWN EXPENSE, ADVERTISE HUD ACQUIRED PROPERTIES FOR SALE AND ARE ENCOURAGED TO DO SO IN ACCORDANCE WITH THE FOLLOWING: 1. PROPERTIES MAY NOT BE ADVERTISED UNTIL THEY ARE OFFICIALLY LISTED FOR SALE BY HUD. 2. PROPERTIES MAY ONLY BE ADVERTISED AT THE SAME PRICE AS HUD HAS ADVERTISED ON THE HUD LISTING. 3. BROKERS MAY NOT WORD THEIR ADVERTISEMENTS TO STATE OR IMPLY OR HAVE THEM PLACED IN SUCH A POSITION WITH REGARD TO OTHER ADVERTISEMENTS OR NOTICES, INCLUDING THOSE PLACED BY HUD, SO AS TO GIVE THE APPEARANCE THAT THEY ARE A SOLE SOURCE OF PROPERTY INFORMATION OR THAT THEY HAVE AN EXCLUSIVE OR FAVORED SALES LISTING OR SALES ADVANTAGE. 4. THE TERMS "REPOSSESSED", DISTRESSED"' OR "FORECLOSED" MAY NOT BE USED. THE PHRASES "GOVERNMENT-OWNED" OR "REO" MAY BE USED WITH DISCRETION. 5. THE ADVERTISEMENT MUST INCLUDE THE STATEMENT "HUD PROPERTIES ARE OFFERED FOR SALE TO QUALIFIED PURCHASERS WITHOUT REGARD TO THE PURCHASER'S RACE, COLOR, RELIGION, NATIONAL ORIGIN," OR AS AN ALTERNATIVE TO THE STATEMENT INCLUDE THE HUD EQUAL OPPORTUNITY LOGO IN THE AD.