How HUD process offers? Automatic responses or human review?

[Javier G.]

I came across this property in the MLS Link, and the realtor said that the HUD computer analyzes offers and automatically rejects offers less than 89% of the asking price. I viewed the property and I estimated $16k in repairs. Based on the asking price and repairs, I was wondering how much would be a reasonable offer? Realtor sent 4 comps averaging $137K with a small SD.

I'd say ARV = 137k x 0.7 = 95.9K

95.9k - 16k (repairs) -10k(closing, commisions) = 69.9K

Anyone with expertise in HUDs that can give me advise? 

Thank you, Javier