The Award Process
Bid Results
· 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.
To the Selling Agent:
Below are some very helpful tips on how to make sure the closing process is expedited as quickly as possible. If you should have any questions please don't hesitate to ask:
If the buyer needs utilities activated/property dewinterized in order to conduct inspections/appraisals, please make sure that you contact your Field Service Manager as soon as possible. In order to find out who that is, please go to www.hudhomestore.com and click on Property Contacts at the top of the page. Type in your case # or property address and your Field Service Manager will be clearly referenced. The FSM websites are listed below for additional information depending on which one your property is assigned to:
BLM Field Service Manager
Also if your lender requires a copy of our FHA appraisal, please do not hesitate to contact me.
Please note that if the purchaser is obtaining FHA203b or 203k financing, HUD will procure a Lead Based Paint inspection for properties built prior to 1978. Closing may not occur until the inspection and a Clearance Certificate has been obtained or a proper credit for stabilization of deteriorated Lead Based Paint has occurred, depending on the type of FHA financing selected. Please note that this process may take weeks to complete. Please follow up with me before scheduling your closing to get confirmation that the proper procedures concerning Lead Based Paint have been completed. You may refer to the LBP Disclosure Addendum enclosed in your contract for more information
New Disclosure Has HUD Home
Buyers Puzzled
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 homes on a daily bid deadline get the additional warning that they are available “subject to the Asset Manager accepting a bid from an earlier bid period”.
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.
Why Did HUD Leave $20,000 on
theTable?
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.
HUD did not accept the highest offer that was submitted over the weekend. Instead, they took the first acceptable offer they received on Saturday.
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.”