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DELETECamilla…,  in 25502

Do I absolutely have to get a certified check or money order before placing a Hud Bid. Why cant I get it if I win the bid?

Asked by DELETECamilla B, 25502 Thu Oct 25, 2012

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In the terms and conditions on the bid screen it states you have the buyer's earnest money in hand and that you are responsible for the earnest money.....what happens if the buyer wins the bid but walks....guess who HUD will call.....your broker....guess who your broker will call....YOU. I have an agent friend that was required by his broker to pay the earnest money to HUD....$1,000. He never heard from the buyer after winning the bid
0 votes Thank Flag Link Thu Oct 25, 2012
Hi Camilla Barnes,

I have closed several HUD Homes with buyers and I have never had a buyer get the earnest money certified check or money order unless we won the Hud bid. These funds are always submitted with the actual signed contract information that has to be delivered in person or express mail with in the 48 hour turn around time normally requested by the HUD representatives.

Have a Great Day,

Rick Payne
Keller Williams Realty
1 vote Thank Flag Link Thu Oct 25, 2012
Camilla: actually you don't HAVE to give the cashiers check when making the offer. BUT, in the event you win the bid, the broker has 48 hours to have the docs AND your earnest money in the hands of HUD's designated agent. So, if my client isn't awarded the bid, what I do, to prevent my client in having to return to their bank to get the cashiers check back into their account is let them know upfront that the check is due in my office within 2 hours of being notified they have won the bid. IF they Don't show with check in hand I immediately withdraw the offer and cancel the bid. This way no one is "stuck" with paying or loosing the earnest money. As a side note, I also do not EVER submit another offer on their behalf without money in hand. So, in short you don't HAVE to make the deposit with your bid.
1 vote Thank Flag Link Thu Oct 25, 2012
Absolutely YES. HUD makes the rules and we all have to play by them,
1 vote Thank Flag Link Thu Oct 25, 2012
If you want to WIN the bidding war, you absolutely do not want to give HUD a reason to move on to the next offer. Follow their instructions EXACTLY.

Better still, get representation from a competent Realtor who works for you as a buyer's agent. They cannot guarantee your bid will win, but they can advise you if you are offering too much, and look out for your interests.

Best,

Dave Herren
404-425-4945
Best Atlanta Properties
0 votes Thank Flag Link Fri Nov 9, 2012
I thought that Hud threw out your bid if you did not return the paperwork in time. I never heard that they expected to give the bid to the next in line as well as getting the earnest money from the person that did not complete the transaction.
0 votes Thank Flag Link Thu Oct 25, 2012
Hi Camila,

There is a provision in the bid stating that your agent received an earnest money from you at the time of placing a bid. If you are unrepresented, that's another story.

Good luck!
0 votes Thank Flag Link Thu Oct 25, 2012
When purchasing a HUD property, the buyer must abide by all HUD rules. Not doing so will result in not getting an accepted contract.
0 votes Thank Flag Link Thu Oct 25, 2012
Rodrick gets my thumbs up. We have to have the signed sales contract, pre-qual letter or proof of funds and the earnest money deposit before we submit a bid for ANY buyer on the HUD homestore website.
0 votes Thank Flag Link Thu Oct 25, 2012
Camilla....aren't you an agent? Thought the name sounds familiar
0 votes Thank Flag Link Thu Oct 25, 2012
Hello My Friend. I don know why my profile doesnt say that. I just registered and it asked. I have bidded on Hud before and I did get the check but I was wondering if I could do like Steve Miller suggested .
Flag Thu Oct 25, 2012
Who's your real estate agent or Realtor, Camilla?

They are the person who wants your questions - we don't a question like this here, because we can't answer it with any level of knowledge or authority in a way that is germane to your particular transaction.

I will say this - earnest money is "put up or shut up" money.

I think that HUD probably believes that too...K. Bernard gets my thumbs up.
0 votes Thank Flag Link Thu Oct 25, 2012
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