Rules govern HUD bidding process

Prospective homebuyers who’ve located and are interested in bidding on properties offered for sale by the U.S. Department of Housing and Urban Development (HUD) should keep several key points in mind.

During the first 15 days of the bid period, only owner occupants are allowed to bid. In addition, homebuyers must have a real estate broker with a number issued by HUD 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 a bid being accepted, homebuyers must submit an earnest money deposit in certified funds made payable to the title company of their choice and a letter from a bank or lender stating they either have the necessary cash to close the transaction or the lender has committed to making them a loan.

An inspection period offers time for owner occupants to check out the property and determine what costs could be associated with making the property fit their needs. The inspection must be arraigned between the broker and field service manager. This information will be supplied to the agent submitting the bid.

Homebuyers must pay for title insurance. 

The closing must occur with 45 days of a bid having been accepted by HUD.

As of the date of this writing, 16 HUD homes were available in Mesa County. For more information about HUD properties, visit

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