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In my last post in this series about buying a HUD home, I went over the four types of HUD homes and how they can affect the type of financing a non-cash buyer will need. I now want to cover what is referred to as “Exclusive Listing Periods “, what it is and where the four types of HUD homes “FHA” insurability” fall into these exclusive listing time frames.
When a HUD home first comes on the market for sale, priority is given to buyers that are owner occupants, non-profit organizations and government entities. The length of time of this “Exclusive Listing Period” will vary depending on the property’s FHA insurability and this is where the four types of HUD properties comes into play.
If the property is being sold as Insured (IN) or Insured with Escrow (IE), the Exclusive Listing Period is 30 days for owner-occupant buyers, non-profit organizations, and government entities. All bids that are received in the first 10 days are all looked at as having been received at the same time, and the “initial bid review” will take place on the 11th day of the Exclusive Listing Period. If there is no winning bid, then bids continue to be reviewed on a daily basis until the 30-day time frame ends.
If the property is being sold as Uninsured (UI) or Uninsured 203(k) (UK) eligible, the Exclusive Listing Period is 5 days for owner-occupant buyers, non profit organizations, and government entities. Again all bids received during the 5 days are all looked at as having been received at the same time. These will then be opened on the 6th day of the Exclusive Listing period.
So thus far we have identified when owner-occupant buyers, non-profit organizations and government entities can bid on HUD properties, but what about investors, 2nd home buyers and all other purchasers?
After the Exclusive Listing Period has expired, 30 Days for (IN) and (IE) properties, and 5 days for (UI) and (UK) properties, unsold properties now enter what is referred to as and “Extended Listing Period”. It is during this time that all purchasers, including investors and second homeowners can now bid on a daily basis until an acceptable bid is submitted. Bids are opened and reviewed the following business day.
In conclusion, HUD homes are initially offered for owner-occupant buyers, non profit organizations and government entities. Following the Exclusive Listing Period, unsold properties are available for all buyers, including investors. Bids can be submitted any day of the week, including weekends and holidays.
In my next post I will cover what you need to do prior to making an offer on a HUD home as well as the bidding process for buying a HUD home. In the mean time if you are interested in receiving current HUD home listings or have additional questions please contact me. I will be more than happy to offer my assistance.
Past Posts For Reference
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