HUD is the BIG MOMMA; over Freddie Mac and Fammie Mae.
From my notes; Your Agent did everything right and advised you right:
You get one shot and everything good is going for at or more than LISTING PRICE.
The problem is; if you go too much over LISTING PRICE, your Appraisal will not cover the $$.
At $5000 over, the other bid may have this problem, and you will have another chance at this house.
You just cannot fall in love with one house until you get it; and others will come along.
You cannot blame your Agent for what happened; he did an excellent job and you've got to believe in him.
They do the Appraisals fairly quickly and you will know about it, maybe this week.
If this other deal falls thru, I would bid the same; and say a prayer.
I would have him looking for other houses.
Good luck and may God bless
Also HUD just recently changed their policy that they are now disclosing the amount of the winning bids but they do not stay posted very long.
A great deal of what you do is dictated by the protected process. If you bid during the proptected period, then you have to wait until the end of the period to find out the results and whether you got the bid, someone else got it, or no one. If no one got it, it will either go to daily bids or another protected period might be placed on it. The protected period is typically for owner-occupant, governmental organizations, or non-profits.
When it goes to daily bids it is open to investors as well. When it goes to the dailys...you will know the next day whether you got it or not...if not. you can submit another bid that day. The best time to get the best deal is right after the listing broker does a price change.
If you bid during the protected period and did not (which seems to be the case) get the bid, don't dispair. Many HUD contracts fail to go to closing and that property may very well end up on the bid list again. Ironically it might even come back at a lower price than you bid.
It would also be helpful to know if your agent checked the hold for back-up box. It could be that you are in a back-up position and not even know it.
The one question I have is how do you know what was the amount of the winning bid. HUD does not share that information. So either your agent knows the agent that had the winning bid or he/she has information that is typically not available.
In any event, if the home was available for a FHA 203b, insured with escrow, HUD already has done the appraisal. As long as the bid does not exceed that amount, then typical FHA finacing is available. There is even a 100.00 down program for first-time buyers.
Hope this helps...