Hud Home Bids - Landlord Forum thread

Hud Home Bids by Joe (SC) on November 2, 2009 @15:21

Hello everyone, I've been trying to acquire some HUD foreclosure homes to fix up and rent but have had no luck on the bidding process (in many cases, I've even well overbid the asking price); does anyone here have experience with this or ideas on how to win a bid? (or is it just a fix between real estate agents?)
Thanks,
Joe

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Re: Hud Home Bids by Anonymous on November 2, 2009 @15:23	[ Reply ]
Try bidding higher.

Re: Hud Home Bids by Ultimate M-Bone on November 2, 2009 @15:38

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How are you submitting the bids? Are you going through a Hud licensed Realtor to submit them for you on line? Also every Hud listing is listed owner occupied for the first so many days (10 days for Ohio) before it's open to all bidders, are you trying to bid on them in that "owner occupied" time frame, if so, your bid would be kicked, besides that I am pretty sure even for your State that you have to go through a realtor to submit the bids on your behalf, that's how it works here in Ohio anyway, don't imagine it being any different for other States. There is quite a bit involved in bidding these homes. Then all the paperwork that has to be printed off signed and Fed exed within 48 hrs of wining the bid. You also have to have either proof of funds, ie., a bank statement in your name showing the avialable money or a preapproval letter to submit with the offer that gets sent with the rest of the packet. When having an agent submit a bid for you, you also have to give him/her a check for the earnest money, that is required at the time a bid is put in online, a copy of that check would also be sent with the packet when you win the bid. Again all this goes through a realtor, and not just any realtor, he/she has to be registered with Hud to be able to submit the offers online on your behalf.

So, how are you going about doing this? If completly off from what I described, then that explaines why it isn't working for you.

Also another note, just in case you are doing this properly. Cash offers even offers less than others who have to get financing will win the bids. Banks will take a lower cash offer anyday. So if you are showing preapproval for a loan instead of proof of funds, that will make a huge difference.

Besides that, if you were working with a Hud registered realtor, wouldn't he/she be giving you reasons why you are failing to make a purchase?

Re: Hud Home Bids

Re: Hud Home Bids by Anonymous on November 3, 2009 @08:35	[ Reply ]
I'm in TX and the HUD homes don't sell for less then the listed price. The listed price here is usually well below what the value is, so getting approved isn't the problem, but I would look into what the appraised values are in the area you are looking and compare, maybe they are listing the houses well under the value.

Re: Hud Home Bids by 574-Brad (IN) on November 3, 2009 @21:31	[ Reply ]
HUD repos suck. They are usually overpriced, and have minimal incentive to dispose of them. They give preference to owner occupant bids over investor bids, even if they are lower. Look at the regular repos owned by banks. I'm sure you'll find much better deal.