I have had several calls recently asking what it means when a HUD Home is listed as Uninsured (UI). 

I can understand how that could be read as the inability to obtain homeonwers insurance on a property, so I will try to better clarify the term.

Uninsurable (UI):

• First 5 Days:  Owner Occupant Bidders only
• Property does not qualify for FHA financing and typically requires more than $5,000 in repairs or does not meet FHA lending guidelines for other reasons.
• The Initial Bid Review is on the 6th Day.  Bids from the first 5 days are opened and reviewed simultaneously, then daily thereafter if a bid is not accepted. 
• Day 6:  Available to all including Investor Bidders
• Non-FHA financing or Cash required.

.

Uninsured Properties Often Start with a  Lottery Period 

What is the Lottery Period?

Certain property eligibilities allow Good Neighbor Next Door participants, HUD registered non-profit organizations, and government entities to bid on the property prior to becoming available to Owner Occupant bids. These properties, which are usually located in HUD designated revitalization areas, or are in areas determined to be uninsurable, are available in the Lottery period for 7 days.

 

Properties in the Lottery Period can be found at  www.HUDHomestore.com during the Lottery Period even though they are not yet available to "normal" buyers.   They will not be in the MLS until the Lottery Period has ended and they are available to Owner Occupants.

  Bids are reviewed Monday - Friday mornings, excluding Holidays.

 
A bid placed on Friday - Sunday will be reviewed on Monday. 

HUD Home on 2.5 Acres.

• Bedrooms: 3
• Baths: 1
• Sq.Ft: 1824
• Year Built: 1935
  
  
  

  201103876

HUD Home on 1.5 Acres.

• Bedrooms: 3
• Baths: 3
• Sq.Ft: 1972
• Year Built: 1994

          201010507

3.29 Acres in CRR

• Bedrooms: 2
• Baths: 2
• Sq.Ft: 1907
• Year Built: 1999
  
  
  

   201104128

Bare Land in Terrebonne

• 4.28 Acre 
• Fenced 
• Power to Road
• Smith Rock Views

   
  201010842

   

In order to keep all buyers and brokers on a level playing field with HUD Properties, it is my intent to share any insights I might be lucky enough to pick up along the way.

The process and order in which bids placed on weekends are handled was recently clarified for me.

All bids placed  on a Monday through a Thursday are opened together on the following day.  

•  For example:  all bids placed at any time on a Wednesday are opened and processed at the same time on Thursday morning.

All bids placed Friday - Sunday are opened on Monday, however they are not all opened and processed at the same time.

• Bids placed on Friday are opened and processed first.
• If there is no winning bid based on the margins HUD has set, then bids from Saturday are opened and processed.
• If there are still no winning bids, then bids from Sunday are opened and processed.

Unlike the initial 10 day bid period where all bids are opened on the 11th day for review, once the property reaches the daily bid period (day 11), bids are truly considered daily.  Friday bids are processed before Saturday, and Saturday before Sunday.

Showing a property on a Sunday and submitting a bid does not have the same advantage as showing on Friday or Saturday and submitting a bid that same day.

Hopefully this helps to clarify the bid process.  If you have additional questions don't hesitate to contact me!

	Terri Visser Desert Sky Real Estate, LLC 636 NW Cedar Ave  Redmond, OR 97756