HUD bidding process detailed

Homeowners interested in bidding on homes offered by the Department of Housing and Urban Development must keep several points in mind.

During the first 15 days of the bidding period, only owner occupants are allowed to submit bids. Homeowners also must have a real estate broker with a number issued by HUD known as a NAID number submit bids for them. Only the name or names of the homeowners as they would appear on the title and their Social Security numbers are needed to submit a bid.

Within 48 hours of acceptance, a homeowner must submit the earnest money deposit or certified funds made payable to the title company of the buyer’s choice and a letter from a bank or lender stating the buyers have the necessary cash to close the transaction or the lender has committed to extending a loan.

Financing is available for most HUD properties. The Federal Housing Administration offers several different loan programs. Two programs are available to finance repairs on HUD properties. A 203B loan is used when repairs are less than $5,000, a 203K loan if repairs will cost more than that.

An inspection period offers time for an owner occupant to check out the property and determine what costs could be associated with making the property fit his or her needs. The inspection must be arranged between the broker and field service manager. This information will be suppled to the broker submitting the bid.

The buyer must pay for title insurance. Homeowners have the option to purchase this insurance at an additional expense.

Closing must occur within 45 days of HUD accepting a bid.

For more information about locating HUD properties offered for sale, visit the Web site at

Ben Hill, owner of Hill & Homes in Grand Junction, submitted this article. For more information, call 250-5002 or visit the Web site at