· Bid results are posted daily at a time determined by the Asset Manager (Usually at 1 PM). Cut offs are at 11:59 PM.
· If your bidder is not going to occupy the property, the bid cannot be submitted until the 16th day from the initial listing date (Exclusive Period). Owner occupants receive priority during the first 15 days. On the 11th day of being on the market (insured and insured with escrow) bids are opened and all offers submitted to that date are reviewed. If an offer achieves the AM's trigger point or threshold it is awarded and the listing is taken off Hudhomestore.com and the winning agent will recieve a winning email and all failed offers will receive a cancelled notice. Should no offer achieve a winning position all offers are cancelled and bids are open daily thereafter till the AM awards a winner. Uninsured properties will open on the 7th day and daily thereafter.
· 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 a winner is selected from the bids received during that day, the results will be posted by 1:00 p.m. EST the following 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.
A few days ago HUD added a new disclosure to its listings on the HUD Home Store that has many buyers and real estate agents puzzled.
“Availability of home is subject to the Asset Manager removing the home from the market”
What does this mean?
Basically, they say that HUD could remove the listing at any time without notice. On regular HUD listings that does not happen too often. They may remove a HUD home from their website, because of damage to the property. Maybe someone stole the copper or broke into the house.
HUD reviews new offers during business hours (Central Time). Bids submitted by midnight are reviewed on the next business day. It usually takes most of that day to go through all of the offers.
A property may disappear from the HUD home store anytime during the day, when HUD accepts a contract submitted a day earlier.
Here’s a good strategy that will save you time and redundant offers …
Submit your offer after 6 pm. That’s when most HUD listings have been updated and you know that the HUD house of your choice is still available.
Last week there were substantial price reductions on 2 HUD condos. Let me give you an update on what happended over the weekend.
Both condos are now in contract. That was predictable, as the asking prices of these homes had dropped by more than 50%.
You may be surprised to hear that HUD left $20,000 on the table.
These homes were on a daily bidding deadline. As HUD does not review offers on Sunday, we did not know, if they had accepted a contract. New offers were flowing in on Sunday. More than 10 in total.
I warned my buyers that HUD may have accepted an offer on Saturday, and that we would not know until Monday. Contracts submitted on Sunday came too late, despite the fact that at least one of them was $20K higher than the one they accepted.
What can you learn from this?
You have to be ready when HUD lowers the price. The first acceptable offer gets the house.
Unlike Fannie Mae, HUD does not apply the Best-and-Final approach to get the highest offer.
“The early bird gets the worm.”