A while back I wrote several posts about the HUD home buying process. HUD did an overhaul of the way they do business and some of those points are no longer valid. Most of the changes aren't anything that the typical buyer would even notice but some things are a good bit different. Bid periods are one of those.
New HUD listings used to be posted on Tuesday & Friday, now they can be listed any day of the week (big deal, right?). The biggest change is the period which is open to owner occupants only. HUD is firmly committed to encouraging home ownership and they are putting their money with their mouth is these days. As of now, the HUD owner occupant preference period has been extended from 10 days to 30 days.
There is still an initial 10 day bid period where all offers that come in during that time are considered to have been received at once. At some point in the near future, that 10 day period might be extended to 15 days - things are still shaking out over there at HUD and they are changing some of the rules around here and there, you know, just to keep you guessing!
If none of the offers they get within that initial period are acceptable, then it goes to a daily bid where each offer is only competing with the others that were received on that same day. Investors are still locked out until the 31st day. On that 31st day, if an investor submits a better offer than an owner occupant, the investor's going to get the contract. All the way through day 30, an investor can't even make an offer.
Bad news for investors but good news for owner occupants who don't have to compete with an all-cash buyer on some of the screaming deals you sometimes find on HUD homes.
Check out HUD homes that are available right this minute!
Originally posted at JuliaOdom.com