Bidding Procedures (pertains to HUD properties only)
Bid Review: Bid are reviewed every 24 hours. As long as a property is listed on hudhomestore.com, HUD considers that property to be available for sale. Once a property is removed from hudhomestore.com, HUD is no longer accepting offers on that property.
NET Bids: HUD accepts the highest NET bid. This can be calculated by subtracting the seller-paid closing cost and the buyer agent commission from the offer price.
Deposits: The earnest money deposit check or money order must be made payable to "HUD or (Buyer Name)". Certified or Cashier’s Check or Money Order. When the bid is accepted, send the earnest money to the AM as part of the Sales Contract Package. The AM sends it to the Closing Agent within two (2) business days of receipt.
Listing Periods: If you (agent) or your bidder (buyer) is not going to occupy the property as a primary residence, your bid cannot be submitted until the 31st day from the date the property was listed on hudhomestore.com. Properties marked as available for investor offers will listed as "Extended Period". Owner occupants recieve priority during the first 30 days (Exclusive Period).
Inspections and Repairs: HUD homes are sold as is, without warranty “AS-IS”. That means HUD generally will not make repairs except to preserve and protect the property or to eliminate a major safety issue. There are financing options such as the 203k loan program to assist home owners in financing such repairs. It is encouraged that all buyers get an inspection after the offer is accepted. Buyer's have 15 days to do all inspections after winning the bid. Utilities, dewinterization and winterization are all the responsibilty of the buyer including all associated expenses. Buyers must follow all HUD guidelines with regards to utility activation and inspections. Selling agents should contact HUD or the listing brokers office for details about these procedures. Buyers' can be released from the Sales Contract based on the Home Inspection only upon presentation of the inspection to HUD with validation that repairs were greater than the (PCR) Property Condition Report indicated (found on hudhomestore.com). Deposits will be refunded with proper proof.
Deadlines: If the listing has a deadline posted as "Daily", this means that all bids are reviewed daily. Submit bids by 11:59 p.m. CST to be considered for that day. If the listing has a deadline posted as “daily” and bids are submitted on a Friday, Saturday, or Sunday, all those bids will be evaluated on the following business day.
Multiple Bids: If you are a Selling Broker, you can represent different buyers submitting bids on the same property. There is no limit. If a purchaser submits multiple bids on the same property, only the bid producing the highest net return to HUD will be considered. If a prospective owner-occupant purchaser submits a bid on more than one property, the bid that produces the greatest net return to HUD will be accepted and all other bids from that purchaser will be eliminated from consideration. However, if the prospective owner-occupant purchaser has submitted the only acceptable bid on another property, then that bid must be accepted and all other bids from that purchaser on any other properties will be eliminated from consideration.
Backup Offers: In any given bidding period, more than one offer is often received. These offers will be ranked, with the highest acceptable net offer first. The first bid will be extended the offer to purchase, then the second (third, fourth, etc.) bid will be indicated as a backup offer with email from the AM that they are in a backup position and if the primary bid cancels, they will be given an offer to purchase.
Bid Cancellations: A buyer may cancel a bid at any point online until the bid has been accepted.
Bidding Over the Asking Price: If your bid is over the Appraised Value per the most recent, active FHA appraisal, the buyer must cover any amount over the Appraised Value. Overbidding requires proof of funds. Overage must be in cash at closing and cannot be financied when buyer is obtaining an FHA loan.
Bid Status: To find out if your offer has been accepted or what the current status of your offer is, click the "Review Your Bids" screen when logged in to hudhomestore.com. Automated emails are generated from the system as a courtesy but should not be relied upon for notification of accepted bids.
Definitions of Bid Status:
Open: The bid has been submitted and is awaiting review by the asset manager. The bidder can modify or withdraw their bid.
Accepted: The bid has been accepted by the asset manager.
Withdrawn: The purchaser or their bidder has withdrawn the bid, and it is no longer under consideration by HUD.
Cancelled: The bid has been cancelled.
Under Review: The bid has been opened and is being reviewed by the Asset Manager (AM).
*** This information is not guaranteed by Metrowest and is being provided for informational purposes only. HUD reserves the right to change their policies and procedures at any time.
