HUD Listing Period Question

[Samantha M.]

Investors can only bid on properties once a property has moved to the extended period listing. Below is an example from HUD homestore to make sure I have a good understanding of how this works.

1. Example property has an Bid Open Date on 4/29/2012 when the asset manager will begin reviewing bids.

2. The property will move from Exclusive Listing to Extended Listing 30 days later from the Bid Open Date on 5/29/2012

3. On 5/29/2012 the example property will now go to open listing where investors can now bid.

Is the above correct? You have to wait a whole month watching on a property to move from exclusive to extended so you can bid on it? Also does moving from exclusive to extended normally result in a price drop?

[J Scott]

Yes, the first month, the property will only be open to owner occupants and some other exclusive purchasing groups. Investors need to wait 30 days before their offers will be considered, and from what I've seen, there is no price drop when the property is opened up to investors (which makes sense, since the buyer pool is now increased).