You probably wonder why there are so many different Bidding Deadlines for Columbus HUD Homes? Let me try to explain the differences and the impact they have on your bidding strategy.
NEW Listings – Owner Occupants Only for 10 Days
A property that is listed for the first time on http://www.nhmsi.com will be offered for owner occupants only, starting on a Friday. This is called the PRIORITY PERIOD and lasts for 10 days. Bidding deadline for a new listing ALWAYS falls on a Sunday and ends at midnight.
OPEN Listings – All Bidders DAILY
HUD will review all offers received during the priority period. If HUD did not receive an offer meeting internal guidelines then the listing opens up for bidding to any qualified buyer. Owner occupants and investors can bid. Bid Deadline is now DAILY at midnight.
PRICE REDUCTIONS – Owner Occupants First for 5 Days
Sometimes a property does not sell during the open listing period. After a certain time HUD will reduce the price on this property and publish the re-listed property on Fridays again. The first 5 days following a price reduction the property is available for owner occupants only. This shortened priority period ends the following Tuesday at midnight. From time to time you can find HUD listings with several consecutive price reductions.
Open PRICE REDUCTIONS – All Bidders DAILY
Should the property still not sell during the shortened priority period, it then becomes available for bidding to all qualified buyers again. Deadline for bidding is now DAILY at midnight.
RE-LISTINGS – Owner Occupants First for 5 Days
Occasionally a property that was already in contract falls out of contract again. In that case HUD will offer the property for sale again and re-post the listing on a Friday. The price may be the same as before or reduced. A re-listed property is available for owner occupants only during the first 5 days. These bidding deadlines fall on a TUESDAY at midnight.
Open RE-LISTINGS – All Bidders DAILY
As before, if the property did not sell during the priority period for owner occupants, the listing will open up to all bidders with a daily deadline at midnight.
CONTRACT ACCEPTED – WHAT NEXT?
Congratulations! You won! Hopefully your agent was prepared for the good news and you completed all the paperwork BEFORE submitting your bid. You have now exactly 48 hrs to submit the complete contract package to NHMSI.
Faxes are not allowed, and contracts need to be submitted with ORIGINAL signatures in blue ink.
HUD will review your paperwork and email your agent once your contract has been fully accepted (ratified). This process will take about 7-10 days.
I am a HUD registered bidding agent and can help you find and bid on any HUD home. I will make sure to double and triple check all of your paperwork so our contract gets accepted the first time! Call or email me anytime with any questions you may have. I am looking forward to helping you purchase a new home soon!
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
{ 2 comments… read them below or add one }
I placed a bid on a HUD home and my realtor did not have me sign a thing or do any type of paper work is that okay or should I have done something before placing my bid. He also told me a HUD home needs no down payment and you don’t need any of the money till closing date is this true?
Hi Kristy, it is correct that you don’t have to sign any paperwork just to place a bid. Your agent should have asked you for a copy of your mortgage pre-approval letter if you are using financing, or a copy of your bank statement if you are buying cash. When submitting a bid on behalf of a buyer, the agent has to electronically sign that he is in possession of these documents. After submitting the bid for you the agent received a bidding confirmation which he should have emailed you. It’s a pdf file, date and time stamped, and that way you have proof that your bid was actually submitted.
In Ohio, the financing for HUD owned properties is no different that if you would purchase any other home. That means that you will need 3.5% down for an FHA loan or 5% for a conventional loan.
Once your bid is accepted (your agent will receive an email) you will need the earnest money deposit of at least $500 and this deposit needs to be sent in to the asset manager along with your contract package.
Other than that, you may need funds for a home and pest inspection and utility activation and all of this takes place prior to closing.
Let me know if you have further questions.
Susanne