You didn’t win the bid during the OOO period, you won AFTER the period. You just placed the bid during that period, HUD waited until the period was over, and your bid was one of the first in line to be reviewed AFTER the OOO period was over. I encourage investors to bid during the period, but they cannot WIN during the owner occupied only period (only after the period is over).
Yes you are right the owner occupant bids are reviewed and given first priority. This was explained in my original email, but you guys are missing the point i am trying to make. Say the o/o period is over @ 11:59 on Tuesday night. They review the bids an no o/o qualifys. They then review the investor bids and if your bid qualifies you win!!!
And the investors who waited until the “all bidder” period never had a shot. So technically you are right, but you still did not have to wait for the all bidder period. The bid ended Tuesday night and you won Wednesday morning. The home never entered the all bidder period.
Thats the majical point I have been trying to make. Do not lose bids by waiting until the all bidder period.
WOW! There is something terribly wrong here! This is not at all how I understand the bidding process works…
During the “all bidders” timeframe, bids are closed each day at midnight, not as they come in…the highest net-to-HUD offer that exceeds the HUD threshold is the winning bid - not the one that gets there first…that doesn’t even make sense – HUD is trying to get the highest amount possible, not the fastest! If there are no acceptable bids, bids are reviewed at the end of the next day.
This is one of the more bizzare threads I’ve seen!
No its not the fastest. You are right Keith. I never said it was the fastest. The gentleman who posts as nomoney down said “first in line”.
I bid during o/o period with other investors and o/occupants. Hud reviews all owner occupant bids as if the were recieved simultaniosly. If no bids qualify, they then review all investor bids as if the were recieved simultaniosly and the high bidder wins. But you win the morning after the o/o period ends. The bid never goes another night. If you bid often, you have probably watched houses go off the market to other investors.
The point that nomoneydown made about you dont win in the o/o period is a technicality since investor bids are opened immediatley followng o/occupants. Read this from AFR Hud and notice that both the o/o bids and investor bids are reviewed on the same day.
Owner-Occupant bids received during the initial 12 day priority period will be opened and reviewed on Day 13, and the highest acceptable net bid to HUD will be selected. Should there be no acceptable Owner-Occupant bids during the 12 days of the priority period, investor bids will be opened and reviewed on Day 13. Investors may bid at any time during the 12 day Owner-Occupant Priority Period, but investor bids will not be considered until day 13.
You see the o/o bids were considered on the 13th just as the investor bids were. The only difference is that the o/occupants were reviewed first and if one bid qualified then the investor bids are never considered. So one can say the investor didnt win in the o/occupant period, but the bid still didnt go to Daily all bidders.
If I waited for the all bidder period in my area, I would miss most of the great deals. Dont do it!!!
Also, one more thing. Notice that AFR Hud refers to the period as
“Owner occupant priority period” not “owner occupant period”
Because owner occupants are given priority. Everyone can bid but owner occupants are given priority.
The whole HUD process facinates me. There are many ins and outs that the average investor or realestate agent does not know. You can make a lot of money if you know the system. There is a house in my area now that can be had for 45% of appraised value. Now I do not agree with the appraised value or I would have snapped it up. But there are excellent deals out there.
Great idea. When I started investing, I though the way to riches was on the courthouse steps. Then an experienced investor turned me on to Hud, and now I barely look at the foreclosure listings.
I saw this conversation going earlier but didn’t jump in.
The rules surrounding the o/o and investors changed in the last 6 months. I do a lot of business with the realtor that lists all the HUD properties here locally, and I think it was about 3 months ago she told me that they were changing the rules of the o/o period to only give o/o’s priority during the initial bidding period.
I would guess they have not updated the HUD site yet and that would explain the discrepancy. I run into realtors all the time that still think you have to wait till after the o/o period to bid as an investor. I normally don’t correct them. I just smile. poo on me.
I like HUD’s. I check them every week. Most of them have several bids that beat mine, but every once in awhile one slips through and I get it.
Does anybody else assign Hud contracts?
HUDs are one of the eisiest to assign if you know what your doing. I have been to closing with my clients and seem them pick up $14k without using a dime of their own money or their own credit.