HUD homes have specific rules in regards to investors. The investors must wait until the bid period for owner occupants is over. Then HUD will open it up to all, including investors. At that point, HUD will review the bids daily to see who submitted the best offer. HUD, as all sellers likes cash offers since they are cleaner, quicker, and require less risk as far as failed loans by the buyer, and less paid out in seller paid closing costs, and no appraisal issues. But having said that, HUD only looks at the bottom line net proceeds to them after all commissions and seller closing costs are taken into consideration.
On a triplex you may have a better shot at it getting past the owner occupant period more than a home. What you offer needs to be based on your Buyer's Agent CMA to determine true value. He should also be able to have an idea of the demand for such a property in its current condition to help you know whether to or how much to bid over the asking price. One thing to consider is that if you bid too much over the appraisal may not come in at that amount. The listing price is the actual HUD appraised value. For an investor purchasing with a conventional loan you will need to put a minimum of 20-25% down and the conventional appraisal is subject to be higher than the HUD appraisal depending on the condition. This could be a good deal for you. Hope is works out.
Robert McGuire ASR
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct â€“ 303-669-1246
I bid daily on behalf of my buyer on the HUD website. In my experience, HUD resets the bidding expiration until a bid is accepted. I am based in Connecticut and HUD is federally governed. So I would think that the process should be the same except for the bidding time-- as to its deadline?
If you bid more than the list price, most likely, you will have an advantage especially if it is cash.
Have your agent submit your bid as soon as possible.