Hud home bidding deposit?

Question

to place a bid on a hud home is it required to put $500 down? i was told that all bidders put in $500 and the winners $500 goes towards the price of the house. the other offers lose there $500. is this correct?

Answer 1

No, if your offer is not accepted you get the deposit back, only accepted offers have their deposits held (and typically Hud even gives the deposits back if you have to drop the contract from financing problems - but no guarantee on this).  Also, the amount is $1000 if the house is selling for over $50,000.