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HUD Backup Position

I made an O/O offer on a HUD foreclosure in Exclusive period, before bids were opened.  I bid the most I could afford -- but very much under the listing price (like 82% Net).  I didn't expect to win (certainly was praying so) because looking at housespin I saw recent HUD homes in my city went for near or above listing price.  I figured the minimum acceptance was probably very high: list price minus Commission and closing costs or more.

I didn't receive any confirmation emails, my realtor sent me the Bid Acknowledgement.  Why does HUD ask for bidder's email address, but not cc them on anything?  Do they really only send info to the realtor (or let them look it up online)?

My Bid Ack ended with -2, I understand it meant I'm the 2nd person to make an offer -- as of that time.  Fairly meaningless number if I bid early.

Bids opened and realtor stated they accepted a higher bid, but we are in backup position. I expected my bid to be so low, it would get rejected outright.  Does backup mean my bid met the minimum acceptance amount? (but of course others bid more than me) If those ahead of me fall through, do they accept my bid as-is?  Or is it possible I could get a Counter offer when it reaches me for the minimum acceptance amount instead?

Does the Backup position have an ending number showing what backup position I'm in,
like 1st, 2nd, 3rd etc 

Thanks
  • August 13 2013 - Central
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Answers (2)

Profile picture for jgonz123
>>> primary falls through my guess is that they will open the listing back up for offers to come in again

That sounds like the exact opposite of what I've read on HUDHomeStore and from other posts.  Stories are if the primary even waits a few minutes past the 48 hour notice or fills the app out in black ink, that they don't even allow grace -- they reject and just move onto the next one in Backup position.  What am I missing?
  • August 13 2013
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Banks can be a bit different than buying from Mr - Mrs Jones. They accepted the other offer and i am betting they never signed or agreed to your offer so if the primary falls through my guess is that they will open the listing back up for offers to come in again. I seriously doubt that they would move to your offer without offering it back to anyone again.


tim
  • August 13 2013
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