efd is right. just like it is stated @ bidselect. they r just rewarding u for paying the full asking price, or more if ur a dummy. personally (i have watched every house on that site for a few yrs now) i think its not even worth it.....
the only time that would work out is if there was a home u were about to bid on KNOWING other couples r also bidding on that home, and u REALLY WANTED it, u would have to out bid them, so going for the full asking price assures u get the bid AND at least you can benifit from the $100 down.

BUT know this, i can tell u that on that site..... they list the home, ONE MONTH LATER(within a wk or so) they drop the price usually at LEAST 5K......UP TO 9, SOMETIMES10K! if its a home just outside of town, or a smaller community where they know not everyone is driving there to look at houses, its almost ALWAYS 9k or more. only the dummies that can't wait jump on that initial price they list. so would u rather save ur 2.5% down? (not 3.5, usually they do round it tho- 3%) which keep in mind is OUT OF POCKET, not added to ur loan.....OR would u rather have 5k knocked off, THEN GO IN WITH UR PRICE and end up financing much less n having LOWER PAYMENTS? which pays off better eh? n either way, if u don't have anything to put down, really maybe u should wait. ur still gonna need money for the title company n many other misc. things. n all that is negotiable as long as theres no competion bidding against u, n u waited for that price drop so they r more desprate to sell thinking they won't get more offers.
remember with HUD homes ur taking a risk, ask ur realtor all the right questions. hud doesnt guarentee anything, theres no inspection/apraisal done, its all up to u to find the problems before ur escape time is up.

oh, and hud is listing these homes at way more than they used to in my opinion....used to b the best site to find a great deal.....now i really find myself on trulia n craigslist more.
also the past 2 months, a ton of homes that were under contract (being sold, already financed) on bidselect are COMING BACK! homes from even 4-5 months ago! for w/e reason these people r loosing the loan (layoffs?) before closing or maybe forclosure, or they r escaping after finding they bit more than they can chew? idk. but this NEVER used to happened before...once a house was under contract, kiss it goodbye n move on, now, they keep being relisted! it's weird.

The $100 down qualifies for certain HUD Owned Homes. A Hud owned home is typically NOT priced at full market value. It removes a barrier of a downpayment for many people to allow them to become home owners.

Here is the correct answer. The $100 down applies on a HUD repo when you bid at least the asking price per HUD or more. If you bid over the price and the bid is accepted you can make a $100 down payment plus the amount you over bid. Basically FHA is stating that you helped them out by giving full price, therefore they lessen the DP requirement.

I've seen this annotation mostly on homes that are HUD foreclosures listed through the Southwest Alliance of Asset Managers.

Pretty simple.
The 3.5% down payment is waived and your down payment = $100.
HOWEVER!!
They usually do not like to give much for closing costs.... 3% or so. Maybe some of the realtors here can share their experience.
If 3% seller concessions (3% of the sales price rebated back to you to pay closing costs) then you will have to come out of pocket or the rest.

Also... lenders can help you a little on the fees if you are willing to accept a higher rate.

Let me know if you have any follow up questions.
Sometimes this is a great deal.

Tom Burris
tomburris@DallasLoanGuy.com