HUD homes can be some of the best foreclosure deals you will find. When they are you’ve hit the jackpot. We have bought a few ourselves but there are some things that buyers need to be aware of when bidding on them.

The process can change without much notice, but for the most part what we’ve seen over the years has been standard. Typically when a new HUD comes on the market the first 10-15 days are open to collecting bids from owner occupants (if there isn’t a special program for a 5 day period to begin). At the end of the period, all bids are opened and whichever nets HUD the most is the one they accept provided it meets their minimum net. This includes agent commission and closing costs a buyer is asking them to pay.

There are ways to tell how many bids have been placed during this period, but you can’t tell how much any bid was. There are also ways to know what the minimum net HUD is probably looking for on any property. We don’t disclose these things publicly because there is a lot of value in knowing them. Years of experience counts for a lot of advantage when dealing with HUD Homes.

If a HUD home is past any collection period and the timeframe changes to 24 hour collection periods, bids are opened each day. If you submit a bid and it is accepted by HUD normally we will know by noon the next day at the latest.

It’s important to note that while you can have an inspection, HUD will not credit or repair any items so whatever you bid on the home you need to understand that the condition of the home will not improve before you close on it.