I may have my first DEAL... But I need help and some support words

i am in Indiana and am a realtor. my understanding is that the only way you can bid on a HUD property is through a realtor. you are actually bidding on the property and they may or may not accept it. they list the property for 10 days for homeowners and non-profits, then it will be open to investors if it is still on the market. you have to fill out a contract, etc., and the HUD house i sold they only put $500 as earnest money down. HUD is very strict and you have to do everything precisely with them. there is no inspection period and you have to buy it if they accept your offer. you need to have your money lined up, etc., because they take this very seriously. this is just what i know from doing a HUD deal here in Indiana. i don't know how different it might be in your state, but you need to have all your ducks in a row. i was fortunate that my buyers paid cash and the closing took all of 15 minutes, but the process before that was long and drawn out. HUD accepted the offer on August 05th and we closed on September 27th. so be patient! good luck!!!

HUD is Housing Urban Development. This is a government mortgage foreclosed home.

Because this is government you will find that they work systematically. Not common sense but from a system.

They often, in most areas, allow the first 10 days for own occupied only to bid on their homes. After this they will often open it up to investors.

HUD will reduce price on Fridays often each four weeks. The reduction is commonly 10% of the current asking price. The asking price usually starts at the HUD appraised value.

This means to get a 30% reduction you will normally be watching the home for 12 weeks or sometimes more.

HUD does not allow very low bid until the reduction comes within range of the offer. Remember common sense...
For example:

HUD asking is $100,000.
Your offer is $70,000 - you offer would be rejected until 12 or so week in the future.

The reason for this is that most all HUDs are reviewed by a computer system not a live person. If you do not fit their box you are rejected.

You can get 91.8% of their current asking price accepted. I have made a ton of HUD offer to find out exactly where the mark is. Keep in mind though I used this only in Utah. Your area may be a little different but my experience with HUD and other government agencies is that they usually follow similar procedures.

Earnest money required is based upon the value or asking price of the property. Lower sales prices take less earnest money ($500). Higher sales prices will need $1000 or $1500 earnest.

Once a bid is accepted you need to pay earnest quickly. If you decide not to buy after they have accepted your bid you lose earnest money.

All HUD bids must be completed through a HUD associated agent.

I hope this helps.

thank you very much.

This is good information.

I will put my offer but I think I will be waiting for long time.

If you have $1k to burn and risk losing, go for it