HUD Accepts my offer and then takes it away

OP

Mankato, MN · Member since 2016 · 45 posts · 18 votes

10y

Greg H,

I appreciate your quick response. I have gone to the extent to call them(talking to whoever will listen) and ask them myself. I asked the person the same thing that you are saying. I said how does the system even allow the offer submitted if this was an incorrect NAID? Would you not stop the bid(offer) and let them know that was an invalid NAID and to enter a correct one.

The thing that may have happened was my realtor was using a NAID of a broker who has recently passed away. So I am not sure if it allowed it because recently it was a valid NAID. But if this was the case would they not allow us to give them the proper information and continue on with the purchase agreement?

Michael Woodward

Real Estate Investor · Greenback, TN · Member since 2012 · 268 posts · 115 votes

10y

@Grant Pope, Sorry to hear that happened! I know it's incredibly disappointing. I agree with Greg that something doesn't sound right. Perhaps your agent used to work for a different company and mistakenly entered the old NAID number. It sounds like the subsequent information he entered didn't match the NAID and it got flagged as possible fraud/hacking. I don't know if HUD has actual people processing their listings or if it's some kind of semi-automated system. It's the federal government though so you can bet that they aren't very flexible and can't make changes or exceptions when someone messes up a bid. You could try calling HUD and see if they can help. I tried to put their phone number on this post but apparently that's prohibited on this part of the forum. Google "HUD phone number" and it will pop up at the top. Good luck!

2 Reply

Michael Woodward

Real Estate Investor · Greenback, TN · Member since 2012 · 268 posts · 115 votes

10y

....our posts crossed in cyber space..... I see you already talked to them. I hope it works out for you!

OP

Mankato, MN · Member since 2016 · 45 posts · 18 votes

10y

Michael,

I appreciate your response as well.

I tried calling around today and did everything I could to find someone who could help me. I never did call that number though. I may have to attempt that one tomorrow. I tried a few different ones. I called Matt Martin Real Estate which was the company who sent me the accepting bid email.

Do you think they will re list the property on the market and allow me to have another crack at it? Or will they award the second bidder?

Leigh C

Brooksville, FL · Member since 2012 · 429 posts · 220 votes

10y

They will award it to any backup bidder that meets the threshold for an acceptable bid. It's possible nobody else bid of course and it will be put back on the market.

I'd get all my ducks in a row paperwork wise and see what happened. Then I'd find a new HUD agent as this one already showed you their skill set on the matter. I'd also watch to see what that property sold for, going over asking price on a hud isn't really a wise idea typically.

Hud has a billion horror stories, i'd be lying though if i said it didn't cause opportunities at times.

Greg H.Pro Member

Moderator

Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes

10y

You are not going to like what I say but your agent screwed up and used an invalid NAID number. With HUD the rules are the rules and with certain things there is no flexibility.

The one suggestion is to call the specific asset manager for the property and plead your case. You most likely will not reach directly but you can leave a VM or send an email. While they most likely will not reinstate your bid, if there was a decent spread between your bid and second place you might be able to convince them to put it back on the market so you can rebid. Calling the HUD 800# is worthless as they have very little or no input at this stage. Your agent can get you the asset manager contact info

3 Reply

Greg H.Pro Member

Moderator

Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes

10y

@Grant Pope

I see now that you posted Matt Martin. Contact me and I will give you the email of the head contract reviewer. It will be a longs sit but at least a shot

OP

Mankato, MN · Member since 2016 · 45 posts · 18 votes

10y

Wow. I appreciate all of your responses, I really do. It is nice to have someone out there who is willing to help.

I guess I will be calling them tomorrow and see what I can do. Just seems so unfortunate. I sent them an email tonight and hope to hear back from them tomorrow.

I will keep you all posted to what follows through.

If anyone else has input I would also like to hear it.

Thank you all,

Grant P.

John Rogers

Real Estate Investor · Davenport, FL · Member since 2015 · 516 posts · 152 votes

10y

Do you have the acceptance e-mail?

It will have come from a "source account"...

That will tell you which representative of HUD you are dealing with...

Examples here in Florida are HomeTelos, PEMCO, etc.

Almost all of them have a generic e-mail like "contracts@.................... dot com

Please submit an e-mail that requests they it is escalated to the contracts coordinator for your case number.

They will usually contact you and you can ask them the pointed questions.

What you are describing is highly unusual... we do multiple offers every day for investors all over Florida and have never heard of this problem before...

Sorry for your troubles...

Lynn Bown

Real Estate Agent · North Port, FL · Member since 2016 · 97 posts · 42 votes

10y

"The thing that may have happened was my realtor was using a NAID of a broker who has recently passed away. So I am not sure if it allowed it because recently it was a valid NAID. But if this was the case would they not allow us to give them the proper information and continue on with the purchase agreement?"

If her broker passed away the question is where is your agents license hung? If they were using a NAID from another broker that they are not with this would be disallowed even if the NAID approved broker was still living. Agents are not independent and can only offer on HUD properties if the broker they are under is HUD approved.

2 Reply

OP

Mankato, MN · Member since 2016 · 45 posts · 18 votes

10y

John,

Thank you for your response. I am kind of in shambles about the whole deal because it was such a great opportunity for me to get into the game. It would have been one of those properties that would have launched me into the game and fed many more of my investments in the future.

I wish it would have been my mistake that was made and not my realtors. I did everything I could, and did it right, only to loose the property.

OP

Mankato, MN · Member since 2016 · 45 posts · 18 votes

10y

Lynn,

Thank you for your response. So what you are saying is that hud should not have even allowed the bid to be processed? That is kind of what I was thinking. If someone enters an invalid NAID, why would they even allow the bid to be submitted? Would it not only make sense to avoid all of this confusion and let them know the NAID is invalid and you need to submit a valid one before processing any type of bid? This would avoid all confusion and make for a much more simple transaction for everyone.

John Rogers

Real Estate Investor · Davenport, FL · Member since 2015 · 516 posts · 152 votes

10y

Grant,

Put it in context of volume...

As of this morning there were 376 HUD homes for sale in just Florida.

Multiply that by 50 States, and it is an ocean of paperwork to keep up with.

Take that number of houses, and consider that we sometimes make 3 or 4 offers on the same property for multiple investors.

Having the NAID number allows access to bid.

After submission, the contract ir investigated for flaws and accuracy... THAT is probablt when the error was caught.

3 Reply

OP

Mankato, MN · Member since 2016 · 45 posts · 18 votes

10y

John,

Putting that in that context it does make sense and I understand where you are coming from. I guess I am just a frustrated investor that was so excited to get into his first property. Talk about a discouraging start. I guess this will just have to be a story a never forget. Possibly the "million dollar mistake".

Jake Thomas

Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes

10y

@Grant Pope seems strange to allow a bid through with a wrong NAID #, usually HUD won't let it go through. Do you have an email stating your bid was cancelled? If you received the winning bid confirmation it seems odd for them to take it away from you. As others have stated already I would call the asset manager for the property as they are in control of this entire bidding process. Worse case if you lose out don't forget there is always another property and always another chance to get a good deal. Don't let one property give you a bad taste. I lose out on properties all the time but good deals still come in once and a while.

John Rogers

Real Estate Investor · Davenport, FL · Member since 2015 · 516 posts · 152 votes

10y

Jake Thomas is offering some great advice...

As an investor you can't get emotionally involved in a single property, (unless it was your Grammy's).

We make offers for wholesale investors...

That means as many as 20 bids per week, per investor.

DO NOT GET DISCOURAGED!!!

Greg H.Pro Member

Moderator

Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes

10y

@Lynn Bown

This never reached the contract stage. My assumption is that the bid was excepted and the listing agent called with the "Congrats call and how can I help you with the contract " and discovered the broker was deceased. This is on the agent and not HUD. The agent may have used the brokers license number as well ? The agency must have changed brokers due to the passing and never recertified or obtained a new NAID number with HUD and tried to get away with using the old one as the process can take a while. Grant has to pay the price for the agent unfortunately. Please get a new agent now in case the property comes back on.

Grant - keep your head up as there will always be another deal. Always ! Get a new agent so you are prepared to pull the trigger when the time comes

Lynn Bown

Real Estate Agent · North Port, FL · Member since 2016 · 97 posts · 42 votes

10y

@John Rogers is right, but it is hard to guess but the computer system could have not been updated in time so it allowed the offer, and got processed. Then in initial DD it was found to be not a valid NAID. It could also be what @Greg H.said which is also a correct statement. Hard to guess but in moving on be sure to align yourself with a new agent and verify his/her status with the broker and if the broker has a NAID so you are ready to pull the trigger with no doubts this time. Dont get discouraged. I analyse 10-15 properties everyday for investors and myself and find 3-5 per month that fit my criteria for investment. But the few that I find are A. more than I can buy, B. worth all the research.

2 Reply

Kevin Prentice

Residential Real Estate Broker · Beaufort, SC · Member since 2016 · 53 posts · 41 votes

10y

@Grant Pope In the last sentence of your first post you wrote..... "I am in such a tough spot and need this property".

No, you don't need this property. Yes, you have a strong case of the "wants". But you don't need it. It's vital to understand the difference between wanting a property and needing a property. Other than a property already owned by your family, I can not think of any properties that fit into the need category. As soon as you step over into the realm of needing a property you've lost control of rational, logical and strategic thinking. When that happens it leads to poor buying/pricing decisions. A good rule of thumb and one of the "keys" to success in RE is the following:

You make your money going in.......not coming out.

The longer you're involved in RE the more you come to realize "great deals" are like buses. Meaning, one comes along every 5 minutes. Believing that provides a sense of perspective and patience. Two gifts that lead to better RE decision making.

OP

Mankato, MN · Member since 2016 · 45 posts · 18 votes

10y

Thank you all for all the encouragement. You are very right, I need to wrap my head around the fact that the deal just didn't work out and I move on. It was just one of those things where all my hard work finally paid off and I got the property at the price I wanted. Everything aligned and fell apart all at the same time.

BUT having said that, I will move on and continue my search. I will not be discouraged and I will continue to put forth the needed effort. This real estate is a huge dream of mine and being apart of it is not something I'm willing to give up. You all have been absolutely wonderful and everyone of your posts have been benefitial to me. I did not know there was such support here on BP. I will continue to come back and hopefully help others out just like you guys have helped me.

Thank you for the support, advice, and encouragement.

Joshua Springer

Residential Real Estate Agent · Columbus, OH · Member since 2013 · 281 posts · 110 votes

10y

Keep your eye on the property it might come back up. One of my properties was a great deal that got under contract as I was getting ready to offer. It fell out of contract after a few months and I got it in contract immediately afterwards.

Good luck.

Joe SplitrockPro Member

Moderator

Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

10y

You are dealing with the government. You are unlikely to find anyone that gives a crap. Going out of their way to help you just creates more work. Sorry if this sounds jaded, but it is the reality of the situation. Ultimately your agent made the mistake. It is not HUDs fault that they didn't follow the right process. It was probably an honest mistake on their part. It is a bad situation, but there is nothing for you to learn here other than sometimes stuff out of your control happens. You have to roll with it and keep pushing forward, good luck!

http://www.hudhomestore.com/Listing/BrokerSearch.a...

Brett Tousley

Real Estate Broker · Richland, WA · Member since 2015 · 76 posts · 50 votes

10y

If everything you said is true and you want to save the deal, your agent should be stepping and fetching to get this deal saved. If they aren't capable of getting their NAID worked out, you may be better off with somebody else in the future.

If they aren't up to the task, you may try this.

1. Search for your agent here:

2. If they appear on this list, you should have a good shot of saving this if you can get in touch with the right person. If you used an agent listed on their website, that may be a compelling enough reason to get the asset manager to reconsider.

If they aren't on the list, you may have to go to plan B. Plan B being wait for it to hit the market again. It is very common in my market area for HUD homes to fail to close with the initial winning bid and return to the market. Not sure about your market but considering the sketchy property condition reports I see here and in my former market, I expect yours may be the same.

I wish you luck but if it doesn't work out, there will be another deal.

Michael Noto

Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes

10y

If you enter the wrong NAID number as an agent/broker on the HUD website it does not even let you get to the screen where you can submit a bid. So something isn't right there.

Each state has asset managers assigned by HUD. Look on the HUD home store websites and/or the HUD website itself to find the asset manager that services your area and call until you get a response. I know in CT the asset managers are Ofori and City Side and all of their info is publically available.