HUD home commissions (sales fee) to the selling agent will auto populate 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.
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 auto populate 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.