I have a blog article that gives greater detail: http://www.kingrealtyteam.com/2009/12/15/buying-hud-owned-homes/
There is a time frame in which the offer is updated on the computer.
After the deadline expires, hud contacts award the deal to the one that meets their requirements (if one meets their requirements).
If awarded the deal need to get offer expressed to the hud contactor within set time line.
They review information and determine if additional information is required and if it is that needs to be expressed to hud contractor.
After the docuements meet the hud contactor requirements it will take about 2 weeks to get signed contracts
It takes some time to go through the process. However, you got make sure you meet the time frames, even thought hud might meet the time frames.
First Weber Group
Certified Distressed Property Expert
In addition to the information you received below, please know that HUD is in the business of putting homeowners into properties, not helping investors make money. Keeping that in mind, HUD does accept all offers as a sealed, electronic bid. The following morning after the bid deadline, HUD will open all bids and choose the highest & best offer. However, if your offer and a competing home owner (occupant) have the same offer they will normally go with the owner/occupant over an investor.
Additionally, each time you make a bid you will need to have a cashiers check or money order for your earnest money prior to making your offer. If your offer is accepted, your agent must quickly get everything to HUD for signature including that money order. Earnest money will be either $500 or $1000 depending on the value of the home you are buying.
As noted below, if a home doesn't sell on the first bid deadline, it usually goes to daily bidding (meaning that the highest & best offers are reviewed daily for acceptance).
There are many other options for purchasing a home that may work for you. If you have a good deal of patience a short-sale may be a good option for you. I hope that this helps.
Coldwell Banker Jane Henry Realtors
North Texas Top Team, Realtors
After the first 10 days if the HUD property does not sell, it is open for daily bidding and you will need at that point, if you so desire to bid, to go ahead and do so before the cut off time line in order to have your bid considered. I have successfully helped clients bid on and win HUD homes, if your interested in having representation through this, which I highly recommend doing with HUD, because there is a lot to navigate through if you are the winning bidder, throughout a 6 weeks process, and if you don't complete the steps on time you could possibly forfeit the house or money or cost yourself; contact me!
Nicole Arenas, Realtor
HUD will not announce winner of till after the cut off time period
HUD provides 48 window for an executed contract
If you don't win the bid agent will be notified
NOW if winner of bid choice decline property after inspection an automatic email alert will be sent out to agent you posted the bid determine if any interest.
Cutoff time for bids is typically midnight, but you can bid before this. The earlier the better. Better for your agent not to wait until the last second as systems do go down, internet connections go down, etc.
I understand HUD takes the highest bid they get, but there is a floor or reserve price. So I think the answer to your question is no, they don't take the 1st bid over list. If there are five bids over list they would take the highest one. I understand they would consider all bids at the next cutoff time. They are time stamped, so for examle if there are 5 bids all for the same net amount to HUD, the one with the earliest timestamp would make it.
If you need assistance making the bid, please let me know. We are a HUD authorized broker and can place the bid for you. I can also show you the results of the bidding on other properties. That might make the bidding process make more sense.
Don't hesitate to call