In order to submit a bid on a HUD home you need 4 things.
1. Earnest Money - A certified check or money order for $1,000 made payable to "HUD or your name". The reason your name should be one of the payees is in case HUD does not accept your offer you can easily get your earnest money check deposited back into your account. If your name does not appear as a payee then the certified check must be sent to HUD and then they would issue you a check back if your bid is not accepted. This process takes awhile so it is musch easier and faster to have both HUD or your name as payees on the check.
2. Pre-Qualifying letter - In order for a HUD registered broker to submit a bid you must have pre-qualified letter or proof of funds to close, to the amount that you want to bid. The letter must be on the bank or mortgage companie's letterhead. The letter should also include the address of the property you want to bid on. If you need suggestions I have a list of companies I have worked with in the past that can help with getting you qualified
3. Contract Signed - If your internet submitted bid is accepted I have 48 hours to get the completed contract paperwork in. The paperwork usually takes about 15-30 minutes and must be done prior to me submitting a bid.
4. Registered HUD Agent - Bids can only be placed online by a HUD registered broker, like myself.
After your bid is placed HUD will post the bid results usually the following business day. Unlike bank owned foreclosures or corporate owned foreclosures where you might have to wait weeks for results. |