Updated about 11 years ago on . Most recent reply
Bidding on HUD homes
What are the rules regarding wholesaling a HUD home? Ive read several blogs but still confused. If they accept whats my timeframe? Are there specific rules in different States? Im in Texas.
Most Popular Reply
Anson Young, I'm here!
I saw this pop up on my keyword, but had not had a chance to see the thread yet.
To answer a few specific questions asked.
earnest money is $500 if purchase price is below $50,000 and $1000 if $50,000 or more.
You will lose your earnest money as an investor if you back out.
Closing is 45 days with most HUDs, but some asset management companies have a 30 day close for cash buyers. You must pay to extend past those days.
HUD is very clear on who can bid and the only way to bid as an owner occupant is to blatantly lie on the HUD bid form. Don't do that.
You don't send earnest money or any docs in, until HUD accepts your bid.
You cannot assign a HUD contract.