Understanding Listing Periods for HUD Homes

Posted by WILMOTH Group on September 9, 2015

HUD utilizes different listing periods for homes based on the qualification status of the home and the type of buyer that wishes to submit a bid. The following provides a guide for selling agents to understand and determine the listing periods for a HUD home.

Exclusive Listing Period (Owner Occupant Priority):

During the Exclusive Listing Period, bids may be submitted only by Owner Occupant purchasers, which HUD defines as owner-occupant purchasers, qualified nonprofit organizations and government entities.

There will be:

  • a fifteen (15) day Exclusive Listing Period for Owner Occupant purchasers for properties listed with status as insurable and insurable with escrow Repairs
  • a five (5) day Exclusive Listing Period for Owner Occupant purchasers for properties listed as status uninsured.
  • A Owner Occupant must occupy the house for one year and can’t participate in a HUD sales for two years after purchase.
  • For Insurable and Insurable with Escrow properties, initial bids received will not be opened and reviewed until the Tenth (10th) day of the Exclusive Listing Period. All bids will be treated as having been received simultaneously. If no winning bid is received by the Tenth (10th) day, bids shall be opened and reviewed on each day after the tenth (10th) day until a winning bid is received. If no winning bid is received in that fifteen (15) day Owner Occupant period, the listing shall be extended to all buyers on day 16. See the Extended Listing Period below
  • For Uninsurable status properties, Owner-occupant only bids shall be opened and reviewed on the sixth (6th) day. All bids will be treated as having been received simultaneously. If no acceptable Owner Occupant net bid is received, the listing shall be extended to all buyers on day six (6). See the Extended Listing Period below.

Extended Listing Period

At the conclusion of the Exclusive Listing Period, should a property remain unsold, all general public bids (including Investors) may be submitted daily.

Quick Review Tables

The following tables provides a different way to review the bidding timelines based on the Listing Period posted at HUDHomeStore.com.

For Insured (IN or IE) – These are the FHA and FHA 203b eligible properties:

Listing PeriodEligible BiddersPeriod DurationBids Opened
LotteryGNND7 days8th day
ExclusiveO, NP, GOV15 days11th day, then daily
ExtendedO, NP, GOV, IList date + 180 daysDaily
DollarGOV10 daysDaily
Extended (no time limit)O, NP, GOV, INo time limit Daily

For Uninsured (UI) – These are the properties that may be eligible for 203k but are not eligible for FHA or 203B FHA financing:

Listing PeriodEligible BiddersPeriod DurationBids Opened
LotteryNP,GOV, GNND7 days8th day
ExclusiveO,NP, GOV5 days6th day
ExtendedO, NP, GOV, IList date + 180 daysDaily
DollarGOV10 daysDaily
Extended (no time limit)O, NP, GOV, INo time limitDaily

The financing status of each asset can always be found on Property Detail Screen at HUDHomestore.com under the FHA Financing fields on the far right column.

Definitions

  • GNND- Good Neighbor Next Door
  • O- Owner Occupants
  • NP- Not For Profits
  • GOV- Government Entities
  • I-Individuals (all buyer types)
  • Lottery– only bidders allowed are qualified nonprofit organizations and government entities
  • Dollar– Certain homes available for a dollar
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WILMOTH Group is headquartered in Indianapolis, Indiana and Fort Myers, Florida. We focus on providing creative local solutions for a variety of residential real estate needs including, properties for sale, property management services in Indianapolis, and short-term management services in Tampa and Fort Myers.