ripped off by HUD?

Question

I recently placed an offer on a home that was in the owner occupant period. I was amazed to see that after the first five days on the market (owner occupant period lasts 10 days) HUD refused my bid and took that of an investor. Is this legal? Should the property remain on the market only to owner occupants for the first 10 days or can HUD's representative determine when they want to sell to investors? I called the representative and they informed me that my bid was too low so they went for the next highest (investor). Should I have the ability to continue bidding for 10 days? I am very confused here and any help would be greatly appreciated.

I checked the bidding status on the web site the next day and there were two bids, one owner occupant (me) the winning on said investor.

I think people are missing the point of this question so let me be clear. Can HUD legally accept an investor bid over an owner occupant bid during the owner occupant period?

Answer 1

I bought a HUD 15 years ago. One bid is all you get. If your bid is too low that's the ball game.

Answer 2

My question would be how do you know it was an investor? They do not sell to investors within the first 10 days. Unless the person who purchased the property said they were going to live there then it could be a legal issue between the buyer and HUD.

Answer 3

Sorry to say, the other posters are correct. If you really wanted the property, you should have bid properly. HUD is under no obligation to take a lower bid on the property. If your bid was not sufficient, HUD is fully entitled to accept another.

Answer 4

You should not be out anything, so not "ripped off". You placed your bid, it was not the winning bid. Such is life, there are other houses, other bids. You don't need to worry about being confused next time, bid a fair price.

Answer 5

You weren't ripped off-you got outbid. Stop whining.