What is a back-up bid on a HUD Home?

A Back-up Bid is an acceptable bid for a HUD Real Estate Owned (REO) Property, held by HUD, should the winning bid fail to close.
 
At the time of bidding, the selling broker may elect to have their bid held as a back-up bid. Should the winning bidder’s sale fail to close, HUD may offer the Property to back-up bidders before relisting the Property.
 
HUD will allow at least one back-up bidder and  in the case of the Good Neighbor Next Door (GNND) program, two back-up bids may be allowed.

For additional information please contact the Asset Manager with jurisdiction over the property.  To locate contact information for the Asset Manager please visit the HUD Homestore website at https://www.hudhomestore.com/ and click “Help” in the gray tool bar.
 
For policy information see Handbook 4000.1 Section IV.B.2.g.iii. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02700