How to Submit a Bid for a Columbus HUD Home Listing
Written by Susanne Novak on June 5, 2009 – 9:45 pm -Only HUD registered bidding agents can place a bid on Columbus HUD Homes on your behalf. Make sure to work with an agent who has experience in dealing with the complex paperwork that’s required by HUD. Incomplete contract packages will be rejected and can cause you to lose your winning position!
I recently attended a HUD Home Seller Seminar for Real Estate Agents, presented by Marla Webb from the Ohio NHMS office in Cleveland. Marla stated that 9 out of 10 contract packages are submitted incorrectly, and that only 5 out of 10 contracts get ratified (fully accepted) by HUD. Wow. Here is MY track record: 100% of my buyer’s contracts have been ratified (accepted) by HUD. I’d be happy to work with you, too and guide you through this process.
How low can you go?
HUD has a proprietary review process for accepting bids. We have been tracking bidding statistics and can help you determine what amount should be meeting internal guidelines. HUD will accept the bid that has the highest NET, provided it meets the threshold amount.
You won – what next?
Congratulations! The next 48 hrs are crucial. HUD has to receive a COMPLETE CONTRACT PACKAGE WITH ORIGINAL SIGNATURES within 48 hrs or you may forfeit your position! Ideally, your preferred agent has completed the contract package with you at the time you submitted the bid, in order to be adequately prepared. The two most important items YOU, the buyer, have to provide are:
- Earnest Money Check in certified funds for $500, $1,000 or $1,500
- Lender pre-approval Letter stating loan amount and type of loan
HUD will review the contract package to make sure everything has been included and everything has been filled out correctly. HUD will email the ratified (accepted) contract to your bidding agent within 10 days.
Important Deadlines
The following time lines start with the day your agent received the ratified contract:
INSPECTIONS: must be completed within 15 days and CLOSING: no later than 60 days. Don’t forget to have a locksmith at the ready to change the locks for you!
More about the INSPECTIONS: must be completed within 15 days. ALL HUD properties have been winterized. Your agent needs to submit a Utility Activation Request to HUD’s appointed Management Company BEFORE turning on the utilities. You then have 72 hrs to complete your home inspections and appraisal (only needed for Conventional or VA loans) before required to submitting proof to the management company that the property has been re-winterized again.
We are HUD specialists and have the inside track to all HUD properties in the Columbus Ohio area. Our team has the experience to help you guide you through the process. Let’s chat and see what opportunities are there for you!
Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS
Specializing in HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650
Tags: bid ratified contract nhmsi, Columbus HUD Home Realtor how to submit offers, hudhomes, listing
Posted in HUD How To | 2 Comments »
July 4th, 2010 at 12:31 pm
I would like to get some information on a HUD home that we may be interested in bidding on. We have already seen the home, and it only needs minor repairs with the exception of extensive mold damage throughout the entire basement. Can you tell me if any previous bids have been placed, how long the home has been HUD owned, things of that nature. Also, we are looking to get a renovation mortgage, so with that being said, what is an appropriate bid to start out with? At this moment, I am just trying to get an idea of whether we would actually want to do this or not. The property is located at 6060 Brook Bay Ct. in Canal Winchester. Please e-mail me with any necessary details. Thank you very much!
July 4th, 2010 at 1:03 pm
Hi Stephanie, here is the link from the nhmsi website for the property above: http://hud1.towerauction.net/cgi-bin/e24_select_property.cgi?id=413332799&office=e24&state=OH
I cannot tell you how many bids have been placed since the property was re-listed on Friday since HUD does not disclose this information. When it was first listed on 4/30/10 it received only one bid.
Since you already saw the property, I am assuming that you are already working with an agent. Your agent should be able to advise you what the comparable sales for the property are and give you a rough idea of how much the mold remediation could cost you. Based on these two figures you should be able to calculate an appropriate offer amount.
Good luck!