[Code of Federal Regulations]
[Title 24, Volume 2]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR291.304]

[Page 499]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 
        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 291--DISPOSITION OF HUD-ACQUIRED SINGLE FAMILY PROPERTY--Table of Contents
 
        Subpart D--Sale of HUD-Held Single Family Mortgage Loans
 
Sec. 291.304  Bidding process.

    (a) Submission of bids. All bids must be submitted to HUD in 
accordance with instructions in the bid package for a particular sale.
    (b) Effect of bid. By submitting a bid, the bidder is making an 
offer to purchase single family mortgage loans as presented in the bid 
package. Submission of a bid constitutes acceptance of the terms and 
conditions set forth in the bid package. Along with the bid, the bidder 
must submit an executed copy of the Loan Sale Agreement, which is 
included in the bid package.
    (c) Earnest money deposits. The bidder must submit to HUD, along 
with its bid, an earnest money deposit in an amount to be determined by 
HUD. The earnest money deposit is nonrefundable to the winning bidder 
and will be credited toward the purchase price.
    (d) Termination of offering. HUD reserves the right to terminate an 
offering in whole or in part at any time before the bid date.
    (e) Withdrawal of loans. HUD reserves the right, in its sole 
discretion and for any reason whatsoever, to withdraw loan assets from a 
pool prior to the bid date. Any earnest money deposits relating to 
withdrawn loan assets will be retained by HUD and credited toward the 
total purchase price of the remaining loan assets in the pool, in 
accordance with the Loan Sale Agreement. After the bid date, HUD can 
withdraw mortgage loans in accordance with the Loan Sale Agreement.
    (f) Rejection of bids. (1) HUD may, in its sole discretion, reject 
any bid under the following circumstances:
    (i) If the bid does not conform with the instructions in the bid 
package; or
    (ii) If, in HUD's sole discretion, it determines that such action 
would be in the best interests of the U.S. Government.
    (2) HUD can also issue a conditional rejection that will become an 
acceptance upon fulfillment of HUD's requests.
    (g) Withdrawal of bids. A bidder may withdraw a previously submitted 
bid in accordance with the instructions in the bid package for a 
particular sale.
    (h) Bids by brokers or agents. Any bid by a broker or agent for a 
principal must be in the name of the principal and signed by the broker/
agent as the attorney-in-fact for the principal. All such bid documents 
must be executed so as to bind the principal by the broker/agent as the 
attorney-in-fact. A power of attorney satisfactory to HUD as to form and 
content must be submitted with each bid.