When Can I submit My Offer to HUD?
You may have noticed that HUD has different submission time frames for different types of buyers. The time frames outlined by HUD are based on the property condition and in some cases on the location.
Two terms to keep in mind when talking about bidding periods are:
Sealed Bidding/ Exclusive Bidding- Bidding is only open to specified buyers, accumulate over a specific time frame, and are reviewed the day after period closes.
Daily bidding- Bids are accumulated over a 24-hour period. These daily bidding periods can be open or exclusive to certain buyer types
The Lottery Period
The lottery period is for properties that are part of special programs and these homes are made available 7 days prior to opening to the general market. One example of special programs is the Good Neighbor Next Door (GNND) program. The Good Neighbor Next Door Program is for buyers that fall into the classification of a government agency, nonprofit, active duty police officer, Firefighter, EMS, or K-12 Public school teacher.
The General Market listing
General Market listing will either be exclusive to owner occupants for the first 15 days or the first 5 days.
Homes that are insurable or insurable with escrow (homes that qualify for FHA financing) have a 15-day bidding period that is exclusive to owner occupants. During the first 15 days of these homes coming on to the market only persons that intend to occupy the property as their full-time residence may submit a bid. Bids are accumulated for the first 10 days of the 15-day period. After the 10th day, the first round of bids from day 1 through 10 are reviewed. If none of the bids from days 1-10 are accepted, then daily bidding for owner occupants only will occur on days 11-15. If no offer is accepted prior to the 15th day, then the 15-day period expires (on the 16th day) and bidding opens to all buyers.
Homes that are uninsurable (homes that do not qualify for an FHA-backed mortgage) have a shorter owner occupant only period. This period is set at 5 days and all bids are sealed during the days 1 through 5. Bids are reviewed on the 6th day and if no offer is accepted bidding is also opened to all buyers on the 6th day and daily bidding begins.
Knowing when to submit your bid is crucial to having your offer accepted by HUD. For additional resources visit HUDHomestore.gov