Re: Hud Home Bids - Landlord Forum thread

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

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?

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Re: Hud Home Bids by Kathy (Oregon) on November 2, 2009 @15:44

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I'm a realtor in Oregon and just recently did a HUD bid for a client here in Oregon and we won the bid. It is a lot of paperwork and it took me one entire day just to get through it all. It's a lot of work but they pay the buyer's agent a decent commission. I agree with you, cash is King just for this reason. Let me know if I can help you further or find a HUD realtor in your area to help you. My guess is you are bidding too low. The HUD properties here are already a good deal so unless you are willing to go at least 90% of the list price, you probably won't get it. We went 95% and beat out the other bidder because the home is worth it. HUD also contributes up to 3% in closing cost. Good luck.

Re: Hud Home Bids by Joe (SC) on November 2, 2009 @16:08	[ Reply ]
Kathy, thanks for your message, as I mentioned to Ultimate M-Bone, I have been overbidding the price significantly (not just 90-95% of the asking price) but serious overbidding by 7-8K; let me know your thoughts and any HUD realtors you might suggest in the SC, NC, and GA area, Thanks

Re: Hud Home Bids by Kathy (Oregon) on November 2, 2009 @23:11	[ Reply ]
I'll see if I can find any Prudential brokers that do HUD properties. Be careful overbidding because the property still has to appraise at that amount if it's a loan.

Re: Hud Home Bids by JOE (SC) on November 2, 2009 @16:06	[ Reply ]
Ultimate M-Bone, thanks for your message, I am using a registered HUD agent and we got two homes last year; it just seems as though the climate has changed, in each one of my bids since, I've actually overbid the list price by 7-8K (that's why I'm confused), any thoughts?

Re: Hud Home Bids by Ultimate M-Bone on November 2, 2009 @16:54

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Assuming that your agent is doing everything right and assuming that agent is actually registered with Hud to submit offers for you. Without knowing the details and what is actially going on, you are asking the wrong person. The agent you are useing should know what is going on.

Are you putting in cash offers? All it takes is for one other bidder to submit a cash offer, it doesn't matter how much higher you are going, believe it or not, the cash offer wins. And like Kathy said, Hud generally will only go 10% less than asking price, although depending on the area, like our big cities, they are taking just about any offer on some of those.

You can check your Hud site to see if your agent is actually regisyered with Hud. What does the agent tell you that is going on? With each failed bid, you should be able to see what happened as you can look up the bid results and see who won the bid and for how much. I bet your agent is skimming more commission off the top especially since you are offering several thousand dollars over asking price. Buyers agents already receive a 5% commission, I wonder if your agent is gettin greedy. You might want to look up another Hud agent on that site to work with.

Re: Hud Home Bids by Gail K (Georgia) on November 2, 2009 @19:33

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The real estate agent I worked with on my last purchase (a foreclosure, not a HUD home) works for a local Century 21 agency that handles many HUD homes.

He mentioned that many buyers have completely "turned around" their outlook regarding HUD homes; while in the past these homes may have been thought of as poor choices in less desirable sections of the community more people are realizing this is often not the case.

Thus, the market interest in these homes has increased greatly, at least in my area of Georgia. He reports many more bids are coming in on these places.

Gail