First bid rejected, then when to submit the second bid on HUD property?

Question

My first bid on HUD property was rejected today, shall I wait for a week or two before submit another bid, or bid it again right away, say tomorrow?

Steve Dussault · Answer

I know an investor that buys a lot of HUD properties.  He usually offers about $5k lower than what he's willing to pay.  If HUD rejects his offer he raises his bid $1k and submits it the next day.  This repeats for 4-5 days until he either gets the property or stops raising his bid.

Chris Vasquez · Answer

Michael,

Here's what I know from my research on HUD. 
When the property is listed on there site as Exclusive. They only accept offers from Owner Occupants. If you told them you are an Investor, they may have rejected it for that reason.
After the Exclusive period. They change the status to Extended. That opens the property to Investors. Which has no deed restrictions if your paying cash. If you finance, you may not be able to resell the property for 90 days and for no more than 120% of your purchase price. Get your agent to find out the details why it was rejected. He/she is getting paid a commission. Let them earn there money. 
Also HUD, from what I have read seems to Not accept offers any lower than 83% of the original asking price. I am watching a couple of HUDs myself.  The first price reduction they did was about a month after the properties went to Extended status and was exactly 10% lower.
I don't know your details so I can't  offer any more info than this. I hope this info helps
Post the details. Maybe you'll get more and or better advice from other BPers. 
Original Price, your offer, Exclusive or Extended status, Cash or financed.

Account Closed · Answer

They should of given you a counter right away.  That said, bidding back right away is fine too, nobody actually looks at these bids.     Hud accepts bid based on a formula, it doesn't seem that there is a person on the other end making actual choices.    If you need more info than this..call me i guess.

Michael Stole · Answer

Come on, buys, especially those with experience with the HUD.