I’ve been keeping an eye on the HUD home… Originally listed at 44,500 then reduced to 26,500. Now it says this “NOW ACCEPTING COUNTER OFFERS/MINIMUM ACCEPTABLE NET BID (LINE 7 OF SALES CONTRACT) TO HUD $13,350”
Can somebody translate this. It seems to me they are begging for a bid of at least 13,350.
Any thoughts?
Not sure what they mean by accepting counter offers since you are making the offer and they need to counter. They want $13,350 net so you need to add your realtor’s commition to that.
What are you waiting for? Make an offer. Oh, look at the property first.
I always place bids on hud homes before I look at them. If I win the bid, then I go look at it and if I do not like the numbers, then I tell my realtor not to send the paperwork and my bid gets cancelled. You have about 3 to 5 days to get out of the contract. I believe 48 hours to sign and send in your contract, then 3-5 days for HUD to sign it and send it back to you, then depending if you are buying as OO or NOO, you have a 1-14 days to cancel the contract.
Fadiz
Do you submit deposit money when you submit the offer? I just had one accepted and since it was an investment property if I backed out they said I would lose my deposit?
Thanks,
NDI
I’m a HUD agent and it was my understanding I need a deposit from anyone I placed a bid for. Do they really let you just not send in the paperwork and cancel your bid without any issues? It seems to me they might let it slip once or twice but after that they may not look at your bids at all.
My agent collects a $1000 check from me for the earnest money but it is not cashed until both parties sign the contract. It is not sent with the bid no. Come to think of it, my agent has not asked me for checks for a while now.
tcwood, according to my agent it is not an issue. Even if you sign the contract, you have a day as an investor and 14 days as an OO to get out of it. Again, I am operating based on what my agent told me. They own over 60 properties they got through HUD themselves.
The San Antonio market is pretty hot market and it is difficult for us to get HUD homes as is, so it is not like I am winning few every week and letting them go 
I believe you can submit an offer with a COPY of a cashier’s check, but not the physical check itself. If the offer is accepted, you have a certain period (24hrs? 48hrs?) to get the physical paperwork together and submitted. I’m not sure about cancelling, but I would think you would lose your earnest deposit if you are the winning bidder and cancelled. I vaguely recall my agent saying HUD gives you 5 (or was it 7?) days to do an inspection, but not sure what happens if it doesn’t meet your criteria.
fadiz
Good to know, I’m going to look into the rules a little further. If your agent has bought so many homes, I’m sure they know the system well.
That is true. You have 24 or 48 hours to submit the paperwork once the offer is accepted (deadline midnight, you are notified monday, I believe you have till tuesday midnight to submit), but if you do not submit them then HUD cancels your bid. Since you never sent a check and you do not have a signed contract, then you have no obligation to HUD.
According to my agent, if you are buying as an OO you have 14 days to inspect the property and within that window, you can withdraw from the contract because they are trying to protect the OO’s interest. As far as investors goes however, the rules are different. I think you get a day but I am not absolutely sure.
You have 24 or 48 hours to submit the paperwork once the offer is accepted (deadline midnight, you are notified monday, I believe you have till tuesday midnight to submit), but if you do not submit them then HUD cancels your bid. Since you never sent a check and you do not have a signed contract, then you have no obligation to HUD.
Ah, so that’s the secret! Now, as long as they don’t blacklist you for doing this multiple times (which I’m sure they don’t), you have a good “out”.
NO point in looking I have looked at houses they all look the same kitchens, windows, Doors… Been there seen that look at the numbers.
Here is my thought on that you can get out of any contract if the inspection does not come back right! So why look… At 13,500 BUY NOW LOOK LATER if you even look then!
Some of the best deals I ever did I never looked at!
LOOKING is a waste of time gas and money!