Home Buying in Fresno>Question Details

Chris, Home Buyer in Fresno, CA

HUD bid messed up.

Asked by Chris, Fresno, CA Fri Mar 15, 2013

We had our bid accepted my pemco. Home inspection is on Thursday. We offered 15,000 more than appraised and asking and wanted 3% closing. Lender told realtor to not ask for closing. By the time we found out it was to late. Lender said he would cover closing. Discloser paper work now says 4.25 from 3.75 and he says he can't get closing. Realtor does not really know HUD homes and says we can't ask for closing anymore. My question. Even know we wanted closing that why we offered 15,000 more than asking will HUD throw us out? We can't pay the 5,000 closing that they want. We just don't want to lose this house. It's frustrating that we might lose it because of a bid mix up. Any advice I would greatly appriciate. Realtor is not really helping. She is trying to get us a lender to cover closing at 4.25! What was the point in giving them 15,000 if we still pay 4.25 in this market. I am lost.

Help the community by answering this question:


Hi HUD buyer,

when the realtor placed your bid in for the HUD property, did she as part of the bid, ask HUD to pay 3% of your closing cost. If she did, and HUD accepted your offer, then HUD should be covering your closing as part of your agreed contract. Did you receive a copy of the HUD bid placed by your realtor?
If so, then on the HUD contract, there is a box that gets checked, which shows the closing cost percentage being asked for and the dollar amount of the closing cost, If you do not have the funds to cover the closing cost, it would be better for you to cancel the contract, when you are able, then for you to be stuck paying a cost you do not have. If you do not get anywhere with the realtor, demand to speak with her broker.
The point of offering 15,000 over the HUD asking prices, was to try and make your offer better than the others. I do not know if you are aware, but when you over bid on a HUD property, you could be liable to pay the difference between the amount the home appraises for, and your bid amount. This would depend on the type of loan you are approved for. On the HUD website, there is a disclosure concerning over bidding on a property and how the different type of loans a buyer may have.
1 vote Thank Flag Link Tue Mar 26, 2013
Sometimes when HUD accept a very high offer , they told realtors to re-write the offer to the sale price of listing .....that happen to me 3 times .

HUD under price a lot of houses because they need to sale righway and for high and best ! its no fair for buyers
0 votes Thank Flag Link Tue Mar 26, 2013
I am sorry but I am little bit confused about the details.

1) why can't the lender give you the loan? Is it because of appraisal issue? That the house is not appraised at or higher than the purchase price?

2) Or you don't have $5000 to come up for the closing? Is this on top of the 3% you asked from HUD when you bid?

Can you please provide more detais.


0 votes Thank Flag Link Sat Mar 16, 2013
She says she can't ask for closing costs that. We will lose the home and our earnest deposit. But, I can't imagine why they wouldn't just take it it would still be well over 10000 more than asking
Flag Sat Mar 16, 2013
Yeah I apologize it would only let me type so much. But, the problem we were supposed to ask for closing costs. We offered 15,000 more than asking because of that. But, after the realtor placed the bid I was going through the paper work and could not find the closing costs. I asked where they were and she said the lender told her not to ask. I called him and he said. I figured you wanted the home bad enough so I told her not to. But, I saved it for you in interest and I'll get you some back. I was so mad but thought well he knows best. We got the discloser paper work and we are at 4.25 interest instead of 3.75 and he says he can't get any closing costs because the market is so crazy right now. We dont have another 5000 on top of 3% down. We were not planning on spending 9000 to get this home. Which is why we offered way more than asking. And the realtor does not know HUD homes. Never worked on one. Another thing she did not tell us till after bidding.
Flag Sat Mar 16, 2013
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