Bidding MORE than listing price for HUD home

[Michael Yoder]

I'm currently looking at a house on the HUD home store website. I would move into the house so I have priority in the bidding process. The market down here in Virginia Beach is very hot and the house I'm looking at is priced well below market value. I want to offer more than the listing price. I was told by my agent that if I offer more than the listing price I have to have in cash whatever I offer above the listing price in order to make a valid offer. So the house is listed at $120,000 and I want to offer $130,000 therefore I need to have $10k cash in addition to any down payment I want to make. Is there anyone out there who can verify that this rule is true? Or have they heard anything like this? I have searched all over the internet but I have not been able to find any information about this. Please help me if you have any experience with bidding on HUD homes.

[Greg H.]

@Michael Yoder

I cannot stress enough to have an HUD experienced agent, lender and title company as HUD has guidelines that are different from regular transcations

In regards to your lender, make sure upfront that:

-They have closed HUD transactions and are familiar with their funding process

-Make sure the lender has a work around if you are not able to turn on utilities for the appraiser as this is the case with many HUDs