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h. Bid Acceptance During Competitive Sales Periods (09/30/2016)
i. Standard
For Properties sold in competitive sales, HUD will accept the bid that produces the greatest net return to HUD and meets all the terms and conditions pertaining to HUD’s offering, with priority given to Owner-Occupant Buyers for Properties being offered with insured Mortgages.
For Properties marketed as uninsurable, HUD will give priority to Governmental Entities and HUD-approved Nonprofits before Owner-Occupant Buyers.
The net return is calculated by subtracting from the bid price the dollar amounts for financing and closing costs, as stated on Line 5 of form HUD-9548, Sales Contract Property Disposition Program, and real estate sales commissions to be paid by HUD.
(A) Multiple Bids
Selling brokers may submit an unlimited number of bids on a Property, provided that each bid is from a different buyer. If a buyer submits multiple bids on the same Property, HUD will only consider the bid producing the highest net return to HUD.
If a prospective Owner-Occupant Buyer submits a bid on more than one Property, the bid that produces the greatest net return to HUD will be accepted and all other bids from that buyer will be eliminated from consideration. However, if the prospective Owner-Occupant Buyer has submitted the only acceptable bid on another Property, then that bid must be accepted and all other bids from that buyer on any other Properties will be eliminated from consideration.
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IV. CLAIMS AND DISPOSITION B. Title II Disposition
2. REO Property Disposition
(B) Identical Net Offer
Where two or more bids result in identical net offers, HUD will give preference to the Owner-Occupant Buyer.
If the identical bids were submitted by two or more Owner-Occupant Buyers, or by two or more Investor Buyers, HUD will choose the winning bid by lottery.
ii. Counteroffers
If all bids received are unacceptable, HUD may, at its discretion, offer counteroffers to one or more bidders via P260, and those bidders may resubmit bids during a specified period of time.
If HUD elects to counteroffer, HUD will accept the highest acceptable net bid received within the specified time period.