Friday, October 07, 2005

HUD Foreclosure Inventory: 'Plenty To Go Around'

Market Watch had this blurb in a recent report. "Under a proposed rule submitted early last month, firefighters and emergency medical technicians would join police officers and teachers in a new 'Good Neighbor Next Door' sales program that would allow them to purchase foreclosed houses in designated neighborhoods at half their appraised values."

"Under the new rules, they cannot have owned any other residential property for one year prior to submitting an offer..The prohibition against owning any other residences during the occupancy term is being dropped as 'an unduly burdensome restriction on business activity.'"

"Participants must agree to live in the homes they purchase under the program as their sole residence for 36 months, starting on the day they close on the sale..In another change, HUD is limiting the number of homes sold under the new program to no more than 5% of the houses taken in foreclosure by the Federal Housing Administration, the agency which insures government-backed home loans."

"The nationwide cap is necessary to make sure sufficient numbers of HUD-acquired properties are available for other property-disposition initiatives. But since the department has an inventory of more than 60,000 foreclosures, there should be plenty of houses to go around."


At 10:12 AM, Blogger Ben Jones said...

I tried to work with HUD and realtors on these homes, but they don't make it easy. The realtors have to be signed up and many have had better prospects the last few years. Don't rely on the HUD website either; they rely on it quite a bit, but it is hopelessly inadequate.


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