source:
  type: guide
  id: hud-4000-1-iv-h-bid-acceptance-during-competitive-sales-periods
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — h. Bid Acceptance
    During Competitive Sales Periods (09/30/2016)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part IV — h. Bid
    Acceptance During Competitive Sales Periods (09/30/2016).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iv-h-bid-acceptance-during-competitive-sales-periods-full
  canonical_id: hud-4000-1-iv-h-bid-acceptance-during-competitive-sales-periods-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part IV — h. Bid Acceptance
    During Competitive Sales Periods (09/30/2016)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part IV — h. Bid
      Acceptance During Competitive Sales Periods (09/30/2016)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: '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. IV. CLAIMS AND DISPOSITION
      B. Title II Disposition 2. REO Property Disposition Handbook 4000.1 1650 Last
      Revised: 11/26/2025 (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. (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.'
  judgment: false
