As the selling agent, you have submitted your buyer’s HUD home bid. You have received a confirmation number that the bid has been received. You are probably wondering “what’s next”?
Brokers must check the HUD Listings website on a daily basis for bid results. If your bid is selected, brokers must submit the original written and completed HUD Sales Contract along with the required addenda to the appropriate asset manager’s (AM) office within the next 48 hours. Otherwise the bid will be considered canceled and the second highest acceptable net bid to HUD will be considered. Check the status of your offers by logging in to HUDHomeStore.com. On the Review Your Bids page, click the Search button to view a list of your most recent offers and see their bid status. There are eight different responses you may receive to your HUD home bid. Before reviewing those responses let’s make sure you have submitted an eligible bid.
Bid Opening, Review, and Results
In order to be valid for bid opening on a specific day, bids must be completed and confirmed on the Internet no later than 11:59 p.m. on the previous day. Bids can be submitted 24/7 but are not reviewed on holidays or weekends.
Bids received on the same day shall be considered to have been received simultaneously. Friday, Saturday, and Sunday bids will be considered to have been received simultaneously and will be reviewed simultaneously on the following Monday. Bids will be opened and reviewed each business day. Results will be posted each business day by 1:00 p.m.
The highest acceptable net bid to HUD will be selected. If two acceptable bids, which are the exact same amount, are received the AM will select the winner by randomized electronic drawing.
Eight Possible Responses to a HUD Home Bid:
Bid Accepted (AC)
Of course, this is what everyone hopes to see. If your bid is accepted both the selling agent and their broker will be sent an email from HUDHomeStore.com. HUD is very definitive that only looking for an email, or claiming one was not received, will not excuse a lack of response to an accepted offer. For this reason, the recommended action is to always log in to HUDHomeStore.com and check the Bid Results tab and the Review Your Bids option. Look for further communication with instructions as to how to submit your contract documentation. If it is not received, be proactive as time is of the essence. Visit the asset manager’s website for posted instructions and/or contact the listing broker.
HUD will occasionally provide a notice to bidders that the minimum net was not received and bidders may enter a new bid. The notice will state: During this period, HUD can and will counter offer bids from ALL unsuccessful bidders, as well as other bids from first-time bidders. HUD will accept any bid that is at least equal to or greater than the minimum acceptable net offer and presents the highest net to HUD. The counter-offer process is not an opportunity to change any of the previously submitted buyer information.
Bid Cancelled (CA)
Unfortunately, this means the bid was not accepted. If the listing is still showing on HUDHomeStore.com, you may submit a new bid.
Other Bid under Contract (OBC)
Your bid was NOT selected. The AM entered into a sales contract on another bid. If you elected your bid to be a backup, your bid will be saved for future consideration in case the contract gets cancelled.
Other Bid Selected (OBS)
Your bid has NOT been selected. The asset manager has a preliminary contract acceptance from a different bidder for this property. If you elected your bid to be a backup, your bid will be saved for future consideration.
Sealed Bid (SB)
Your bid is sealed and is not available to the AM. You can modify or withdraw the bid unless the asset manager has accepted a bid from an earlier bid period. Review the listing periods to know when the sealed bid will be opened.
Under Review (UR)
The AM is currently reviewing your bid and others from this bid-open date.
Two Tabs on HUDHomeStore.com to check for Information:
- Bid Results tab – Accepted bids are displayed for 14 days after the property has gone under contract (step 8). After the 14 day period, bid acceptance information for the property will no longer be displayed.
- Property Contacts tab– The Property Contacts tab lets you find information for all homes owned by HUD, even if they are not currently on the market. Contact information is available for the AM, Field Services Manager (FSM), and Listing Broker.