3 days passed with cash offer, no response from HUD?

Question

So I found a house that I really like, and really would like to live there since I'm just freeloading off my father. I put in an offer a little over asking, my agent got the HUD bid confirmation and what not, but, I have not heard back from HUD. How long does it typically take for HUD to come back to me and say something? I mean I am paying over asking, with cash. It feels odd that it has been two days and a half with no response.

Dante Pirouz · Answer

@Jeff Valentino The system isn't an "automatic" one...the bids are evaluated and compared and definitely there is a big chance that a last minute owner occupied bid came in at minutes before the deadline and was accepted...I lost out on a fantastic property across the street from the lake for $25K (worth $200K) exactly that way and I know that the guy who got it during owner-occupied isn't technically living in it but is holding it unoccupied/unrehabbed until he can either flip it or rent it out...I drive by it everyday and think wow what a opportunity that would have been...just the luck of the draw!

Working with HUD properties have their own quirks that you have to live and learn but I love that our government is working with investors like us to help benefit all concerned even it if is a little wonky sometimes...like @Greg H. said I have found my best deals from HUD!

Dante Pirouz · Answer

I completely agree with @Greg H. about HUD...with a little patience and perseverance the HUDHomestore system works for us and is more straightforward/cut and dry than dealing with a non-governmental/regular seller. I would suggest waiting until the deadline has passed and then checking the system regularly. I have found that during the owner-occupied period things are usually less predictable for us and thus you tend to lose bids more often than if you bid on properties that are in the extended period. I prefer to bid on "seasoned" properties that have been sitting in the HUD inventory for a while because not only do I get a faster response to my bids but I also get a little more "gimme" on getting a below-list-price bid accepted.

Jeff Valentino · Answer

@Greg H. I'm not knocking HUD, just giving my expertience. I keep hearing about strict bid guidelines and numbers being automatically accepted but it doesn't match up w my experience. Do you have any insight into the situation I described above? Is it that someone put in an accepted bid at 11pm the day the exclusive period ends?

I've got some properties and missed as well. Some bids below asking price are accepted and lately lots have been going over asking price.

Lastly I have spoken to listing agents where they've told me things about the property and why it came back on the market etc. I didn't say anything about getting a bid amount.

Greg H. · Answer

Inwill actually defend HUD in this thread. I personally have made a living being HUD homes as it has represented 90+% of my inventory. The bid processi once understood is more straightforward than dealing with "Joe" seller and agent. The bid process has strict deadlines and offer numbers automatically accepted .

Reaching out to the listing agent is pointless as they have no input or knowledge of the bids on the property until after acceptance. All the information is available to buyer and agent on HUDhomestore

Matt Motil · Answer

HUD is a government agency. When have you ever heard of a government agency being efficient, diligent, etc. Typically HUD waits until the deadline passes and then evaluates their bids. So you need to look and see how much time is left to bid. Most likely you won't hear before then.

Jeff Valentino · Answer

Welcome to dealing w HUD. Are you still in the exclusive period? I just was dealing w an investor client and another bid was literally accepted at the last hour or so (11PMish) of the exclusiive period. We thought for sure we would have a chance to bid as an investor.

You can ask your agent to reach out to the listing agent and see if they can get anywhere.

Greg H. · Answer

I assume that you are bidding during the owner occupant(Exclusive) period ? You and your agent can look up the deadline at HUDhomestore.com. Once that deadline passes bids are opened on a daily basis.

Greg H. · Answer

Bid deadlines are always 11:59:59pm and will be opened the following day usually by 9am or so but there seems to be some variance to that.  The property may have had an acceptable bid that today but hudhomestore.com tends not to update and take the picture down until 8pm or so(again some variance) although if you click on the property during the day it may say "Property not available at this time"

Listing agents can be a valuable resource for the information that you indicated and then again some no nothing about the property at all.  My point was they do not know how many bids have been placed and/or at what price until a bid is actually accepted.  Then they only know the amount of the accepted bid

Raimonds Lauzums · Answer

Yes I am just buying it to live in it, and we are still in the exclusive period.  Thanks for the advice!

3 days passed with cash offer, no response from HUD?

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