Posted by Dave T on November 17, 1998 at 23:27:55:
Unlikely that your idea would work in practice. HUD usually has a minimum price for their properties. Any bids below the minimum are rejected. Properties that stay on the HUD list very long are usually taken off the market for a couple of months then put back on as a new listing later. The new listing may even have the same price as its original listing but usually HUD will drop the price a bit.
Every now and then, HUD will list some properties that they have not been able to sell a little differently. These bargain properties are listed with a minimum price and the winning bidder is the first to offer the minimum or better.
At the HUD voice auctions, there may be some properties that are sold absolute. Absolute properties are sold to the highest bidder without regard to a minimum price – even if the winning bid is only $500.
Would this work? Young Buck! - Posted by J Armstrong
Posted by J Armstrong on November 17, 1998 at 21:55:43:
I had an idea dealing with HUD homes, which was to get a list of the Hud list for the past 2 months and find out which properties have been getting passed on. Then ounce you find out you can put in a very low bid ($500) for a $50,000 property that has a record of being ignored…the only problem is would they let me bid that low? The other problem is that I have NO MONEY to bid with…
Posted by Mr Donald on November 18, 1998 at 24:12:48:
The best laid plans of mice and men… Well, actually your plan won’t work because HUD has an unstated minimum below which they won’t accept your bid. It’s usually around 80% of their FMV bid price, or so. Furthermore, HUD reserves the right to reject any bid at its discretion.
Now, if you have absolutely NO MONEY to bid with, well… depending on the jurisdiction, you can bid on a HUD home with as little as $500 for earnest money deposit. If you’re in a market that has instituted the latest and greatest in HUD bidding, the electronic (read, Internet) bidding process, your deposit won’t be due until the actual offer is accepted in writing - if you’re working with a broker who is familiar with the process, and has a comfort level with you and your ability to deliver that earnest on time when required.