REO Property Preservation Forum banner

Who are the faceless HUD "Cutters"

12K views 20 replies 13 participants last post by  GTX63 
#1 ·
Got chopped by HUD again... When I asked my client how I can get in touch with them to request a valid reason for the cut..I was informed I wasn't "allowed" to talk to the people who just too food from my table.
To that end I gotta say... if they work for the guv'ment... its Public info...
I may be incorrect on that as they are faceless and I don't know if they're a private contrcator for HUD whacking bids with Mashall Swift Cost estimator or what.

All I know the phrase "HUD has reduced your bid" any of ya'll get that song an dance?
 
#2 ·
Got chopped by HUD again... When I asked my client how I can get in touch with them to request a valid reason for the cut..I was informed I wasn't "allowed" to talk to the people who just too food from my table.
To that end I gotta say... if they work for the guv'ment... its Public info...
I may be incorrect on that as they are faceless and I don't know if they're a private contrcator for HUD whacking bids with Mashall Swift Cost estimator or what.

All I know the phrase "HUD has reduced your bid" any of ya'll get that song an dance?

Been getting from 5 Brothers and NFR for awhile! I think it`s BS, but do not see how to get around it!
 
#6 ·
Got chopped by HUD again... When I asked my client how I can get in touch with them to request a valid reason for the cut..I was informed I wasn't "allowed" to talk to the people who just too food from my table.
To that end I gotta say... if they work for the guv'ment... its Public info...
I may be incorrect on that as they are faceless and I don't know if they're a private contrcator for HUD whacking bids with Mashall Swift Cost estimator or what.

All I know the phrase "HUD has reduced your bid" any of ya'll get that song an dance?
BS, HUD doesn't reduce bids they either accept them or decline them. If the work order states it, you can report them.

By the way, to my knowledge, HUD rates are still the same per ML 2010-18. Anyone mowing already is supposed to be following last years rates. The new grass rates will come out on or before March 31, 2013 for this upcoming season.

Also, I was told HUD dropped Marshall and Swift and is now with Blue Book using Repairbase.
 
#8 ·
I have called their bluff before. HUD does not cut bids. Your bid cannot be altered by anyone without your permission. Cut your plumber's bid to install your new toilet and see what he does. HUD is not Walmart; they do not need your bid to be xxx, they only go by best and lowest. While the government may be many things, they do not tell you what your debris or mold bid may be and that you must do it for that price.
 
#10 ·
Hey Paul Williams of Foreclosurepedia has filed a criminal complaint about this...and they are using Istar to record and make lists of this activity so they can show the courts "pattern"...you should send him an email and he can get you the information you need....
 
#12 ·
Everyone is right to say that's BS but IMHO you're better off learning to work with the system. HUD's approved cost estimator is RepairBase, so if you get a "HUD approved price" or "HUD reduced your bid" it's probably because when they entered your bid into RepairBase it came out lower.
If you get in contact with RepairBase and complete a sales/training webinar they'll give you some free credits and you can try out their website. The presentation is not very long and I thought it was interesting, they break down how they came up with pricing, what affects it, etc. Even if you don't continue to use it, you'll still be able to get pricing for the items you typically bid.
Another thing I'd point out is if you give the cost estimator a reason it will increae the price. For example, grass over a certain height, special order glass required, must use commercial lawn equipment, needs a 2 story ladder, etc. Make sure your bids include the scope of work, give them a reason to pay your bid price.
PS-I'm also told this is the cost estimator Safeguard is using when you call in to their "bid desk"
 
#13 ·
The problem with the estimator is you look up a price. Let's say replace 40 gal hot water heater cost $849 per repairbase so that is what you bid. then the national looks up the same thing at $849. Your expecting the bid approved for $849 but the national see's $849 minus discount. so the bid gets cut accordingly. If the national did it the right way and add their discount to the $849 then everyone would be happy. But we all know that will never happen
 
#14 ·
Hammerhead is 100% correct.

Also, it doesn't matter what estimator "they" use but what "YOU" use. An independent contractor can charge what "they deem to be a profitable estimate" and the person receiving that estimate can decide to use it or reject it.

Simple.

We use Xactimate. That same hot water heater is $871.00 + $174.20 (O&P) + $146.34 (base service charge) + $34.55 (gas line connector for supply line) + $123.73 (truckload to landfill). Total for hot water heater replacement==== $1,349.82.

Learn to Estimate Correctly and there is $$ to be made.... :)
 
#16 ·
I don't use estimating software. I base the bids off of what the items cost and my profit and o/h. I always give the standard answer, "sorry but the item in question can not be performed based on allowable".
Sorry but if they don't like it have someone else bid. I am in business so that I can make money not lose money while someone else make money from their cut.
 
#19 ·
From what I've been able to gather HUD does not cut bids. They either accept or deny.

Any one of these nationals saying other wide is lying. Something they are good at.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top