The end of October of 2010 brought about a change in the way Denver HUD homes are listed and the way bids are accepted. This change will benefit owner occupants and lengthen the time that Denver homes are available as a HUD home before investors can place bids.
In the past, Denver HUD homes were initially listed for a set period of time (usually about 10 days). During this time, bids were only accepted from owner occupants and the bidding was left open during that time period. This allowed buyers 10 days to place bids and several bids could be submitted to HUD during those 10 days by multiple buyers.
After that open period, HUD would make a determination and either accept the highest bid, or, if there were no acceptable bids, HUD would allow investors to bid on the home. Once this initial period was finished, HUD homes were treated much like other Denver Homes and a bid from either an investor or an owner occupant would be looked at individually and either accepted or rejected on its merits. Things are now a bit different.
At the end of October 2010, the management of Denver HUD homes was taken over by another company. Now the timeline for these Denver Homes has been altered. there are two sets of circumstances for Denver HUD Homes: FHA Insurable and FHA Non-Insurable. The definition and determination of insurable versus non-insurable is beyond the scope of this article. here we will only explain how bids are accepted. For more detailed information on these types of statuses, consult your agent.
FHA Insurable Denver HUD Homes
Currently, when HUD places FHA insurable Denver HUD homes on the market, there is a 10 day period where only bids by owner occupants (non-investors) will be accepted. HUD will wait the entire ten days to accept multiple bids and make a determination of acceptance after this 10 day period. If no acceptable bid is made, the home is then opened to only owner occupants for a period of 20 days. However, during this 20 day period, HUD can accept any acceptable bid placed on the home and there is no need to wait the full 30 days for a decision from HUD.
If no accepted bid is made, then the listing will be treating like other Denver homes and the bidding will be opened up to investors as well as owner-occupants. There is no time period for acceptance and all bids will be accepted on a first come basis.
FHA Non-Insurable Denver HUD Homes
For non-insurable HUD homes, the process is much different. These homes will be available to owner-occupants for a period of only 5 days. After that five day period, HUD will determine which, if any, bids to accept.
If after that 5 day period no bid is accepted, then the bidding will be opened to all types of bidders – investors as well as owner occupants. This ensures that a home with non-insurable status is not unnecessarily kept on the market for 30 days.
These are major changes and will impact your bidding strategies for Denver HUD homes, especially for investors. Contact us to make sure you’re receiving daily email alerts and market reports so you are in a position to bid quickly on all of the available Denver homes: 303-726-1874