This is also true for bidding on a Columbus HUD home. Sometimes you will get a 2nd chance, even if you missed out on your original bid. Here’s how:
Say your realtor submitted an online offer on one of the Columbus houses listed by NHMSI, and you end up the winning bidder. Until the Contract Package is received, reviewed, and ratified, there is no “Contract Pending” and the property is not “Sold.” Remember, HUD requires original documents to be received within 48 hrs after announcing the winning bidder.
Any late or incomplete Contract Package may be rejected and the back-up bidder gets an opportunity to produce an accurate and complete Contract Package. Or, the property may be placed back on the website for other bidders to make offers. NHMS follows HUD directives regarding the sales of all HUD homes. They try to always act in HUD’s best interests.
Can anybody get this Second Chance? Yes, as long as your Columbus realtor indicates on the bidding screen that you want to be considered as a “back-up” in the event the highest bidder cannot perform.
When do I know? Back-up bids are only valid for 48 hrs and not binding, meaning that you don’t have to accept the offer, if you are no longer interested in the property, or if you have found something else in the meantime.
How do I find out if I got a 2nd chance? Your Columbus realtor will receive a fax from NHMS if your bid is considered for a back-up. There are usually no phone calls or emails. NHMS will give you 24 hrs to make up your mind and decide if you want to accept or decline the back-up offer.
What happens if I decline the back-up offer? By now 48 hrs have passed, so no other back-up bids are valid any longer, and the property will be re-listed for sale at a later time.
What do I do if I want to accept the back-up offer? Your realtor has to sign the form he/she received from NHMS and fax it back within the 24 hr time period. Then the same rules apply, as always: NHMS has to receive an accurate and complete contract package within 48 hrs. Your Columbus realtor has to indicate on the paper contract again that you want to be considered as a back-up bidder (line 10 on form HUD-9548).
Wait 3-10 days for a ratified (accepted and signed) contract from HUD and pat yourself on the back. Congratulations, you are the winner now!
Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650
