Electronic Bidding

All HUD properties are sold by electronic bid placed through the website. For a bid to be considered acceptable it must meet the minimum bid amount for that particular property. All acceptable bids are reviewed in the bid review process and the bid with the highest net to HUD (not purchase price) is awarded the property.

Bid Review Process
Bids are reviewed for acceptability on the following business day after the deadline of bid submission. Our established time to post bid winners is no later then 4:00 pm Eastern time. It is possible that on the day you submit a bid, we have not yet completed our review of the bids submitted the day before; therefore, it may appear that the property is available and that you have submitted a higher bid.
Please do not submit bids until after 4:00 pm EST by which time all bid winners have been posted for that day.
All bids are accepted based on HUD’s guidelines and followed with no exceptions.
All bids submitted for any given property are displayed on BID STATISTICS which is updated every Friday for bids submitted the previous week. The bids submitted in the current week are not displayed until the following week.

Listings with a Deadline of “Daily”
Bids are reviewed on the following Business Day after they are submitted. If a listing has a deadline of “Daily” you must submit a bid by 11:59 PM. The winner (if there is an acceptable offer) will be posted the following day by 4:00 PM. on Bid Results. Please remember that we do not archive any bids.
IMPORTANT NOTE: Bids submitted on Friday, Saturday, or Sunday on properties listed Daily will be reviewed on Monday (or the following Business Day).

Back-up Offers
In the event that there is more than one acceptable bid received, the highest bidder will be awarded and two back up offers will be held. They will each be notified by email or fax at the time of the bid award. At that time the back up bidder’s contract package can be prepared and held by the real estate agent until further notification. If the awarded bid is cancelled the first back up bidder will be contacted by email or fax and they must send the necessary documentation within 2 business days.

Bid Notification Process
The Results from the bid review process will be posted on our Web Site by 4:00 PM EST.
It is the responsibility of the Agent to check the BID RESULTS page on our web site for the accepted bid information and ensure that all the required forms are properly filled out and sent to us by overnight mail. These forms are to reach us within 2 business days from the time of the provisional offer.
As a courtesy we also notify the Agent by e-mail or fax using the information entered during the bid submission. Please note that incomplete information will not enable us to notify you.
DO NOT WAIT FOR OUR E-MAIL OR FAX TO SEND IN YOUR COMPLETED FORMS

Accuracy of Bid Submission
The purchaser information entered on the bid must be accurate. If a generic social security number, federal identification number, purchaser, or company name is used in lieu of the actual SSN/FIN, purchaser, or company name, your bid will be invalidated. The information entered on your bid cannot be changed after it has been provisionally accepted. Submission of false information will result in cancellation of the provisional bid acceptance and the property will be placed back on the market for competitive bidding or the back up bidder will be notified.

Multiple Owner Occupant Bids
Owner Occupant purchasers may only have one accepted offer at a time. If for some reason the provisional bid or contract for an Owner Occupant must be cancelled, you will not be able to submit another bid on behalf of that owner occupant until your cancellation request has been processed. Upon completion of processing a cancellation letter will be faxed stating the disposition of the earnest money deposit (forfeit or refund). Submission of bids during this transition period will only cause delay in your client’s ability to place a new bid.

Over-Bidding with FHA financing
If your purchaser is obtaining FHA financing you will be required to use HUD’s FHA AS-IS Appraisal (unless HUD’s Appraisal is over 6 months old, in this case your purchaser will be required to obtain a new FHA AS-IS appraisal). Therefore, if you overbid the appraised value and your purchaser is obtaining FHA financing, the purchaser must pay the overbid difference in cash. This is because FHA will not insure a loan for greater than the appraised value of the property.

Owner Occupant Periods and When Investors Bids Can be Placed
During the first 10 days a property is listed it is available for Owner Occupant Purchasers only. All bids placed by Owner Occupants that are submitted from Day 1 through Day 10 are opened on the 11th day and are considered as though they were received simultaneously. If there are no acceptable owner-occupant bids on day 11, then bidding becomes available to all purchasers on a daily basis.

Counter Offers
If all bids received are unacceptable but within a certain amount we will notify by email those whose net bids were within the identifiable range and post on our website the counter offer announcement and the period for resubmitting bids. The highest acceptable net bid received within the specified time frame shall be accepted.