Bidding/Winning Procedures


·        Agent Commission

·     Agent Showing Procedures

·       Agent: Property Search

·       Appraisals

·       Bid Status

·       Bid-Offer as Back-Up Offer

·       Bid-Over the Asking Price

·       Bidding Procedures

·       Bidding: How to Bid

·       Cancelling the Contract

·       Closing Expenses

·       Closing Help from HUD

·       Closing: What You Should Know

·       Common Mistakes to Avoid

·       Condos (Are Exempt)

·       Contract Release

·       Counter Offer

·       Deposit Requirements

o   Forfeiture of Deposit

·       Extensions

·       E Signatures


·       Inspections

o   DeWinterize/ReWinterize

o   Utility Activation

·       Lead Base Paint (<1978 Home)

o   LBP Addendum

o   LBP Fact Sheet

·       New Disclosure Has HUD Home Buyers Puzzled

·       Property Condition Report (PCR)

·       Qualify Letter (Lender Letter)

o   Qualify Letter

·       Repair Escrow

·       Sales Contract

·       Strategies to Win HUD Homes

·       Termite Reports

·       The Appraisal

·       The Award Process

o   What Paperwork You Need

o   Where to Send Paper Work

·       Timelines

o   Good Neighbor Next Door

o   Insured Properties

o   Uninsured Properties

·       Title Work

o   Closing Instructions

o   Contact Info

o   Why USE Lawyers Advantage

·       Utilities/Dewinterization

o   Utility Activation: BLM

o   Utility Companies

·       What is different about HUD Homes?

·       Why Contracts Fall-Out

·       Why HUD left $20k on the Table




Placing the bid:   

All bids must be placed on the internet. Go to

1. Click on HUD HOMES for SALE

2. Click on STATE

3. Select Search mode: By City, Zip Code, Case Number, or Price Range

4. Click on the property

5. Below the information click on Submit Bid

6. Enter Broker federal Tax ID or Social Security Number

A. Enter Purchase Price from Line 3

B. Enter Financing Type from Line 4

C. Enter Closing Costs from Line 5 (Max 3%)

D. Enter Selling Agent Commission from Line 6a. (Max 3%/Min $1,250)

E. Enter type of purchaser from Line 8.


Purchaser Information

The purchaser’s full name, social security number, and address are required.

Investor bids for a company require the full company name, FIN, and address.

A. Enter the primary purchaser’s SSN or FIN

B. Enter the last name or company name

C. Enter the first name

D. Enter the current address

E. Enter the city

F. Enter the state

G. Enter the zip code

Broker/Agent information

H. Enter agent/broker phone number

I. Enter agent/broker fax number

J. Enter agent/broker name


Bid Awards

Barring any technical difficulties, winning bids are posted  by 1:00 PM PM on the next business day following the bid deadline. The posted bid results should be considered preliminary acceptance subject to the review and approval of a correct and timely sales package. Owner occupant bid acceptance is also subject to verification of compliance with HUD

owner occupant guidelines. In the case of an GNND/OND/TND sale, the award is subject to verification of information reported on the required HUD 9548-A contract addendum.


Bid Acceptance - If your bid is accepted it is your responsibility to send the original signed sales package to the Asset Manager including the purchaser’s prequalification letter or verification of cash within 48 hours (weekend and holidays excluded).


Over-bidding with FHA Financing - If the purchaser is obtaining FHA financing, your buyer will be required to use HUD’s FHA “AS-IS” appraisal. Therefore, if the purchaser overbids the appraised value and is obtaining FHA financing, the purchaser must pay the overbid difference in cash. This is because FHA will not insure a loan greater than the appraised value of the property


Pre-Qualification of Purchasers Broker/agents are responsible to see that potential buyers have been pre-qualified for a loan by a lender. A pre-qualification letter on the lender’s letterhead must be submitted with the sales contract package.



All packages must be in the Asset Managers’ office within 48 hours of bid results.

All packages must contain the following:

1.   Sales Contract – HUD 9548

2.   Lead Base Paint Addendum – with property information on the website

      (properties built prior to 1978 only)

3.   Copy of the Earnest Money – certified check or money order payable to HUD

4.   Radon Gas/Mold Disclosure

5.   Owner/Occupant Certification (if applicable)

6.   Purchaser Rights and Responsibilities

7.   For Your Protection Home Inspection

8.   Inspection Addendum to the contract

9.   Electronic Filing Addendum

10. Pre-qualification letter or verification of funds


If the contract package contains errors or omissions, the bid may be cancelled and property re-listed available. Prior to submitting the sales contract package, review the contract and addenda for accuracy and completeness.


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