HUD Home Offers

[Fred McDavid]

I've read all I've found on the subject, but I'm not seeing a clear explanation of the process. If HUD has a house on the market for $120k and I think its FMV is more like $100K, what happens when I submit my $70k offer?

Do they wait a while and go with the highest or do they trot off months later and sell it to a charity for $1? Is there a specified amount of time before they either sell you the house or return your deposit?

Also, what kind of deposit do you put down? Are non-winning bid deposits returned when the bid is taken or several months later?

Thanks,

--Fred