Home Buying in Denver>Question Details

Lmcne, Home Buyer in 63301

Tips for investor bidding on HUD triplex? We expect multiple offers & will likely go before we can bid.DoesHUD accept owner occupied less than

Asked by Lmcne, 63301 Sat Mar 10, 2012

list? We believe it is worth more than the list and are considering offering Cash a little over the HUD list price. Can our agent submit our bid a day or two before the date for investors? Our agent iworks hard on our behalf, but may not have a lot of experience with HUD homes. We will not be occupying a unit. Any suggestions to give us a competitive advantage? Thank you.

Help the community by answering this question:


Robert brings up a good point: appraisals. HUD are usually FHA appraised price so if you go conventional you will need another appraisal. You need to have cash to make up the difference if it is low. Again, have your agent run a CMA to you can make a educated bid.
Web Reference: http://www.housefitz.com
1 vote Thank Flag Link Sat Mar 10, 2012

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 – 303-669-1246
1 vote Thank Flag Link Sat Mar 10, 2012
Hello Lmcne:

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.

Good Luck.

1 vote Thank Flag Link Sat Mar 10, 2012
I don't understand why owner occupied bids are accepted through 3/15, but investor's can't bid until 4/4. What happends between 3/15 and 4/4?
Am I missing something? Is it possible for an investor to bid on 3/16?
Flag Thu Mar 15, 2012
Do you keep re-bidding daily for the same property and the same client? Do you just keep raising the bid daily?
Would you explain what you mean that HUD resets the expiration until a bid is accepted? Thank you, Maria, for your comments.
Flag Thu Mar 15, 2012
Investors usually have to wait the 15 day period before they can bid. The submission form will ask if your owner-occ or investor and therefore rank your bid accordingly. HUD usually goes with the highest net offer so bidding over on a HUD is normal and recommended in this market. Denver inventory is down 40%+ and there are many folks out looking to pounce on a good deal! Ask you Realtor do run a CMA and bid what you think will win. Good luck!
Web Reference: http://www.housefitz.com
0 votes Thank Flag Link Sat Mar 10, 2012
HUD will accept less than the list price for a property in the exclusive owner occupant bid period. It is a crime punishable by up to a $250,000 fine and 2 years of jail time for an investor to purchase during in the exclusive owner occupied bid period.
Web Reference: http://www.my5280homes.com
0 votes Thank Flag Link Sat Mar 10, 2012
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