Posted by Dave T on November 14, 2000 at 15:08:57:
True, you must use the HUD forms to bid on HUD properties. And, yes, each offer must be accompanied by an earnest money deposit in certified funds (cashier’s check made out to your realtor’s real estate agency is most convenient for this).
However, note that the earnest money is only deposited upon ACCEPTANCE of the offer. If your offer is not accepted, then your earnest money check is not deposited and may be returned to you uncashed.
True, the earnest money deposit requirement is $500 for bids less than $50K, and $1000 for bids of $50K or greater. Your realtor only needs to forward evidence of a deposit with your written offer. If you want to make a lot of written offers, just give your realtor two cashier’s checks – one for $500 and one for $1000. The $500 check covers your earnest money requirement for all bids you submit up to $49,999. The $1000 check covers your earnest money requirement for all larger bids you submit.
Now your realtor can submit a photocopy of the appropriate check for each offer you submit. The check is only deposited if, and when, your offer is accepted. If you have multiple offers pending when one is accepted, just tell your broker to withdraw all your other outstanding bids if you don’t want more than one property.