bidding on a hud question by Brooke B: When does a HUD bid expire?
Before I write this, please don’t let your answer be “contact HUD”. I have done that already and am waiting to hear back. I don’t know how long that will take, so I’m posting here.
Ok, so I bid on a HUD home. Althought my bid was the highest, it was rejected. I have a feeling they are going to reduce the price (they are asking way too much). If they come down, will my previous bid be considered at that time, or did it expire when they rejected it? I think my price was fair and, even thought I really want this house, I’m financially unable to go any higher. There have been 3 other bids on the home, and they were $ 11,000 – $ 41,000 less than mine.
Thanks in advance for any information you can provide!
I didn’t say I thought it expired or didn’t expire. I am asking if it expired. I did not sign any paperwork, I was told I would sign that if my bid was accepted. I did get a copy of the paperwork, and it doesn’t address my question. I don’t know anything about a HUD book.
My bid was rejected because they said it was too low. But I know that another HUD home down the street from this one was listed with a lower price and was sold for $ 19,999 less than the asking price. Mine has a listing price of about $ 5k more, and my last bid was $ 19,999 less and wasn’t accepted. They have been listed the same amount of time, and are comparable homes, so I’m not sure why mine was not accepted. They did notify me that it was rejected, but didn’t give a reason, so I’m assuming it’s the price.
bidding on a hud best answer:
Answer by dmvariety
YES. reject start over. Does not matter what you think it is fact. Read the forms you filled out and signed. Read the HUD book.
Please read other answers to this question at the very bottom of this page, below you will find a video and related articles that will try to answer the question, if you have a proper answer please post it at the bottom.
Bidding on a HUD Foreclosure – Part II
The second installment of how to bid on a HUD Foreclosure Home from your foreclosure expert – USHUD.com. Including how low of a bid HUD will accept and how to get closing cost help on your next HUD Home.
bidding on a hud Video Rating: 5 / 5
Is A HUD Home A Good Investment For You?
The home buyers market has never been better in recent history, with property values and corresponding prices at all time lows, now is the time to pick up a property if at all possible One of the most tried and proven methods for getting into a home without losing your shirt is to look at foreclosed properties from the Department of Housing And Urban Development (HUD).
HUD foreclosures are available throughout the United States, and while the prices may seem very appealing at first, be advised that the purchase process for such a property is quite different from the normal home purchase.
HUD homes result when the foreclosed home was initially purchased with a loan insured by the Federal Housing Administration (FHA). When the property was foreclosed on, the lender files a claim for the balance due on the mortgage. FHA pays off that claim, and then ownership of the property is transferred to HUD. HUD then makes the home available for sale to individual purchasers, often at extremely low prices.
HUD homes are usually priced at fair market value, with adjustments in the pricing made to reflect whatever repairs the home may require. These homes are sold “as is”, with no provisions in the purchase agreement for any repairs or upgrades. Often, HUD homes are ideal for low to moderate income families or individuals.
You can view HUD home listings on the HUD web site (www.hud.gov), and arrange to view the property by contacting any locally authorized HUD realtor. Be advised that you may not purchase a home directly from HUD, as with any real estate transaction, you must work with a real estate agent.
HUD home sales are unusual in that they utilize a bidding process. Bids are accepted during a given time period, after which the bidding is closed and all offers are opened and examined. Generally, HUD will accept either the highest offer or the one that generates the most profit. If you are the lucky bidder, you will be given a settlement date, usually 30-60 days out. HUD takes care of all agent commissions on the sale of the home, usually amounting to around 6%. You may also be able to get HUD to pay for partial or complete closing costs for financing fees.
Home inspections are usually a recommended step in any home purchase, but are even more vital in the case of HUD homes. Because they are foreclosures, typical wisdom holds that if the previous occupant could not make their payments, in all likelihood they didn’t do much in the way of maintenance or upkeep either. Some of the damage and repairs needed may be considerable.
You will need to secure your own approval and financing for the home. HUD is not in the business of providing financing or financing advice.
HUD does not make foreclosed homes available to investors in the first round of bidding. They are only interested in people who will buy and actually live in the house. If the bidding process does not produce any viable bids or buyers, the property will be opened to investment buyers.
When it comes to HUD housing, the law of supply and demand is really evident. HUD homes are often viewed as being very desirable as far as price, even if they do need a few repairs, however, a sudden glut of HUD buyers may cause the pricing to rise dramatically. When the inventory is high, without as many people buying, you are much more likely to get a great deal.
Know how the bidding process works. Typically a property is put on the market and for a couple of weeks prior to the start of bidding. Nine times out of ten
Do your homework and know what is expected in the event your bid is accepted. HUD requires that paperwork on the purchase be turned in by a specified time following acceptance of your bid. In some states, this may mean as little as 48 hours. Familiarize yourself with the HUD process and know what is required before you jump into the process.
Now is definitely the time to consider buying a home. If you aren’t daunted by the prospect of making a few repairs to get a property where you want it to be, and going through a slightly unusual buying process, then perhaps a HUD home is calling out to you.
Happy bidding…
Billy D Ritchie is the Director Of Content for LeadsByFone, LLC, a lead generation company servicing the flooded basement and water damage restoration industry.
When not writing and educating folks about the perils of water damage, he is also a freelance writer, sometime actor, and formerly professional musician. He also enjoys spending his weekends building and flying model rockets.
Five Common Mistakes Made Buying Hud Homes for Sale
The home buyers market has never been better in recent history, with property values and corresponding prices at all time lows, now is the time to pick up a property if at all possible One of the most tried and proven methods for getting into a home without losing your shirt is to look at foreclosed properties from the Department of Housing And Urban Development (HUD).
HUD foreclosures are available throughout the United States, and while the prices may seem very appealing at first, be advised that the purchase process for such a property is quite different from the normal home purchase.
HUD homes result when the foreclosed home was initially purchased with a loan insured by the Federal Housing Administration (FHA). When the property was foreclosed on, the lender files a claim for the balance due on the mortgage. FHA pays off that claim, and then ownership of the property is transferred to HUD. HUD then makes the home available for sale to individual purchasers, often at extremely low prices.
HUD homes are usually priced at fair market value, with adjustments in the pricing made to reflect whatever repairs the home may require. These homes are sold “as is”, with no provisions in the purchase agreement for any repairs or upgrades. Often, HUD homes are ideal for low to moderate income families or individuals.
You can view HUD home listings on the HUD web site (www.hud.gov), and arrange to view the property by contacting any locally authorized HUD realtor. Be advised that you may not purchase a home directly from HUD, as with any real estate transaction, you must work with a real estate agent.
HUD home sales are unusual in that they utilize a bidding process. Bids are accepted during a given time period, after which the bidding is closed and all offers are opened and examined. Generally, HUD will accept either the highest offer or the one that generates the most profit. If you are the lucky bidder, you will be given a settlement date, usually 30-60 days out. HUD takes care of all agent commissions on the sale of the home, usually amounting to around 6%. You may also be able to get HUD to pay for partial or complete closing costs for financing fees.
Home inspections are usually a recommended step in any home purchase, but are even more vital in the case of HUD homes. Because they are foreclosures, typical wisdom holds that if the previous occupant could not make their payments, in all likelihood they didn’t do much in the way of maintenance or upkeep either. Some of the damage and repairs needed may be considerable.
You will need to secure your own approval and financing for the home. HUD is not in the business of providing financing or financing advice.
HUD does not make foreclosed homes available to investors in the first round of bidding. They are only interested in people who will buy and actually live in the house. If the bidding process does not produce any viable bids or buyers, the property will be opened to investment buyers.
When it comes to HUD housing, the law of supply and demand is really evident. HUD homes are often viewed as being very desirable as far as price, even if they do need a few repairs, however, a sudden glut of HUD buyers may cause the pricing to rise dramatically. When the inventory is high, without as many people buying, you are much more likely to get a great deal.
Know how the bidding process works. Typically a property is put on the market and for a couple of weeks prior to the start of bidding. Nine times out of ten
Do your homework and know what is expected in the event your bid is accepted. HUD requires that paperwork on the purchase be turned in by a specified time following acceptance of your bid. In some states, this may mean as little as 48 hours. Familiarize yourself with the HUD process and know what is required before you jump into the process.
Now is definitely the time to consider buying a home. If you aren’t daunted by the prospect of making a few repairs to get a property where you want it to be, and going through a slightly unusual buying process, then perhaps a HUD home is calling out to you.
Happy bidding…
You may have gone by a house and saw the orange stickers on the front door or windows. You looked at the sign stating this was a HUD homes for sale. It also said to contact a local real estate agent.
You looked around the property and thought this is what you have been looking for as a home for yourself or as an investment. The problem is you have not brought a HUD home for sale or you really don’t know what they are.
To begin with HUD homes for sale are HUD foreclosed homes. They are homes that have been financed by an FHA loan and the loan has gone into foreclosure. The HUD foreclosed home has been assigned to a Marketing and Management Contractor to service and market the property.
There are a lot of interest in HUD homes for sale by both home buyers and investors. They also are lot of mistakes made in buying HUD foreclosed homes. I am going to list 5 common mistakes made buying HUD homes for sale.
1. Finding a Real Estate Agent. I am listing this mistake in buying a HUD foreclosed home first because I think it is the most common and the most costly mistake. You probably think all you have to do is called any real estate agent or one that you have used in the past. It is my opinion that 95% of real estate agents have not sold a HUD home for sale or worst yet; most real estate agents don’t even know what one is. Buying a HUD home for sale is not anything like buying a home from a home owner. You need to search for a real estate agent that is experienced in HUD homes for sale.
2. Paying too much for the HUD Foreclosed Home. The HUD home for sale is listed at what HUD calls “Fair Market Value.” It has been appraised by a FHA appraiser. My experience has been that the list price of a HUD foreclosed home is within 20% of market value either too low or too high. Again that is another reason you need an experienced real estate agent in HUD foreclosed homes. The agent should do a Competitive Market Analysis of the property. An experienced agent also will be able to determine the lowest bid that HUD will take for the property.
3. Inspection. You should have an independent inspection done on the property. Most HUD homes sale will have what HUD calls a “Property Condition Report.” The Property Condition report is similar to an inspection and it gives you a pretty good idea of the HUD foreclosed home. You still need to have an independent inspection done.
4. Sold “As-Is” Condition. All HUD homes for sale are sold in “AS-IS” condition and HUD means AS-IS. They will not do any repairs! So when you make a bid on a HUD home for sale, you should adjust your bid amount to reflect needed repairs.
5. Closing Costs. HUD will pay up to 5% of the purchase price for certain Buyers’ closing costs. The 5% must be included in the initial bid and the key word is “certain” closing costs, not all. Again, I know I am repeating myself, but an experienced real estate agent in HUD foreclosed homes would know which closing costs HUD will pay. For example, your winning bid on a HUD home for sale was 0,000 and you asked HUD to pay 5%(,000) of your closing costs. HUD will only pay certain closing costs and those closing costs only came to ,000. You would LOSE ,000(,000-,000).
Buying HUD Homes for sale can be very profitable if you can eliminate the costly mistakes. Common mistakes that can be avoided by doing some research and finding an experienced real estate agent in selling HUD foreclosed homes.
AL Hardymon is an experienced real estate broker in buying and selling HUD homes for both his clients and himself. His website: http://www.the-hud-home-expert.com is an informational center for buying and selling HUD homes for sale.
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Usually a bid is a firm contract to buy and they have to inform you if you have been outbid so you can bid again.
However you say yours is the highest bid and was rejected do you know why it was rejected.
You can submit a new bid again if you wish but they have a legal obligation to notify you if your bid was not successful. If they do not notify you you can take legal action against them.
http://doghousetodollhouse.com/how_to_buy_a_hud_repo.htm