Effective December 1, 2013, the Exclusive bidding period for HUD Homes is changing from 30 days to 15 days. The Exclusive bid period is more commonly known as the time during which only owner-occupants are allowed to bid on homes. Up until this point, investors had to wait until the 31st day to bid on homes classified as ‘Insured’ or ‘Insured with Escrow.’ With the new change, investors can bid on day 16. HUD homes classified as ‘Uninsured’ will continue to have a 5-day exclusive period for owner-occupants allowing investors to bid on day 6.
While HUD did not provide a reason, I presume it is because the market is now moving fast enough in many markets that if an owner occupant doesn’t bid by the 15th day, the odds of the buyer being an owner-occupant drops quite a bit. If the odds are that an investor will buy it, they may as well move up the time frame to get the contract. As a HUD listing agent for almost 4 years now, I agree with the change.
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