When are properties sold?
· Local governments and FHA-approved non-profit organizations can purchase HUD homes located in predetermined Revitalization areas. This is usually before they are listed to the public.
· Once properties are listed to the public, there is a (15 days) Exclusive Sales Period. This period gives first priority to owner occupant buyers, their primary residence. After this Period (16th day), non-owner occupant investors can bid and known as Extended Sales Period. On the 11th day from going on market, bids are open and all offers from the first 10 days are reviewed and then awarded. If no award of bid after the 11th day, bids are open daily thereafter.
· The length of the Exclusive Sales Period is based on the insurability of the property, meaning insured and insured with escrow (first 15 days are owner occupant) and the property would qualify for an FHA insured 203(b) loan. Uninsured properties are opened on the 6th day and only stay as owner occupants until the 5th day then it goes to the Extended Sales Period.
· Good Neighbor Next Door Program the first 7 days are for that program only then the home goes to Exclusive till the 31st day it then becomes Extended.
· The Exclusive Sales Period
– Usually 15 days only owner occupants can bid them.
· The Extended Sales Period
- The Home is offered to all classes of bidders, owner occupants, investors, government and non-profits
· The total time a home is offered for sale for both the exclusive period and extended period cannot exceed 180 days. On the 181st day it becomes a $1 Sales to Government Agencies.
What are the listing periods?
Properties can be in one of four listing periods, depending on the type of property, the Bid Open Date, and how long the home has been on the market. These listing periods are:
Lottery (7 days): All uninsured homes start in the Lottery period. The only insured homes that start in the Lottery period are insured single-unit properties in a revitalization area. The next listing period is the Exclusive period.
Exclusive (no investor bidding)
(a) Insured properties (15 days): Insured properties not in a revitalization area begin their listing periods here. For insured homes that are single-unit properties in a revitalization area, the Exclusive period follows the Lottery period. The next listing period is the Extended period.
(b) Uninsured properties (5 days): All uninsured properties enter this 5-day Exclusive period after the Lottery period. The next listing period is the Extended period.
Extended (180 days listed): This listing period ends after the property has been listed for a total of 180 days. The next listing period is the Dollar listing period for homes that have an as-is appraisal value of $1 to $25,000. Those homes whose value is zero dollars or greater than $25,000 dollars remain in what becomes an open-ended Extended listing period.
Dollar (Government purchase only): This listing period is ten (10) days and is for homes that have an as-is appraisal value of $1 to $25,000. After the $1 listing period, the home enters an Extended listing period that has no ending date (except when the home is purchased or reanalyzed). Government agencies can still purchase the home for $1 after that home leaves the $1 listing period and enters the Extending listing period.
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