“To make a bid on a HUD Home, you will need to use a HUD-registered Selling Broker.”
– HUDHomeStore.com

Island, REALTORS® is a HUD-registered Selling Broker. Our HUD sales team members below can assist you further with the process.

Scott T. Fujiwara

Radji Tolentino

Aaron Tangonan

When a HUD property goes up for sale, it’s initially listed in an “exclusive listing period.” If HUD hasn’t accepted an offer during that period, then it goes into an “extended listing period.”

Following is information about each period. All time periods are in calendar days, not business days.

Exclusive Listing Period

Only owner-occupants, nonprofits, and government agencies may submit offers during the exclusive listing period.

Insured Properties

A property identified as Insured (IN) or Insured with Escrow (IE) means HUD’s appraiser evaluated the property as needing $10,000 or less in repairs to be in normal working order. You are allowed to get an FHA loan on these properties, and you can even get up to $10,000 in repairs. This is not normally allowed for FHA loans, but this exception exists for HUD’s insured properties.

HUD’s insured properties are listed for a 15-day exclusive listing period.

There is a “sealed bidding period” that lasts for the first 10 days. The bids will accumulate and be revealed in the HUD system for review on the morning of the 11th day. During the sealed bidding period, you’ll see a Bid Submission Deadline like MM/DD/YYYY 11:59:59 PM CT on HUDHomeStore.com — typically a Sunday night so the bids can be reviewed by noon on Monday.

If there is an acceptable offer from an eligible buyer, HUD’s asset manager will accept the bid and proceed toward closing, like any other real estate contract. If there are multiple acceptable offers, all eligible bids will be considered received at the same time, and HUD will choose the one that results in the highest net to HUD.

In the event HUD does not accept an offer (e.g. there were no acceptable offers), the sealed bidding period ends, and the listing moves to a “daily bidding period” where the Bid Submission Deadline will say Daily at Midnight CT. This will continue daily until HUD accepts a bid or until the 5-day daily bidding period expires.

After the 10-day sealed bidding period and the 5-day daily bidding period, the listing will change to be in the “extended listing period.”

Uninsured Properties

For properties that are Uninsured (UI) or Uninsured 203(k) eligible (UK), the process is slightly different. The sealed bidding period is only 5 days.

If there is not an acceptable bid from the sealed bidding period, the listing changes to the “extended listing period.” It does not have a daily bidding period during the exclusive listing period.

Extended Listing Period

All bidders (e.g. investors, owner-occupants, etc.) can submit a bid during the extended listing period.

Like the daily bidding period during the exclusive listing period, bids will be received and evaluated daily until a bid is accepted.

All bids received during the day will be considered received at the same time. For example, a bid submitted at 9 AM will not be given preference to a 7 PM bid unless the 9 AM bid results in the highest net proceeds amount to HUD.

Similarly, a bid submitted at 11 PM on Friday night and a bid submitted at 8 PM on Sunday night will be reviewed at the same time on Monday.

Lottery Listing Period

Properties that are eligible under HUD Special Programs are first offered to Good Neighbor Next Door (GNND)and HUD-approved nonprofits and government entities by lottery.

The lottery listing period is 7 days and is before the exclusive listing period.

Unsold I and IE lottery properties will go through a 10-day exclusive listing period, after which they will go to the extended listing period (no daily bidding during exclusive listing period).

Unsold UI lottery properties will go through a 5-day exclusive listing period, after which they will go to the extended listing period (no daily bidding during exclusive listing period).

HUD’s Count of Days on Market

HUD’s count of days on market does not include days pending in the event a contract falls through.

For example, if a property in the exclusive listing period goes under contract on the 12th day (the day after the 1st day of the daily bidding period) and the deal falls through, it will go back on the market with 3 days remaining in the daily bidding period before going to the extended listing period.

The days on market are the days available on HUDHomeStore.com.