PWS Attachment 4 - Listing Period Progression.pdf

Attachment 4 – Listing Period Progression

FHA’s REO Disposition Process

Asset Control Area (ACA)

Program

•If there is no tenant or the tenant is not eligible for a right of first refusal and the property is located in an ACA area, the property will be offered for sale to an ACA participant. Local, county, or state government units or approved non-profits may enter into a 2-year contract with HUD which would require HUD to sell properties in a defined geographic area, within a revitalization area, to the ACA participant. Properties with a value of $25,000 or less may be purchased for $100, all other properties receive a minimum discount of fifty (50) percent of the appraised value of the property.

GNND Program (7 Days)

•Under the Good Neighbor Next Door (GNND), HUD offers certain single-unit properties located in revitalization areas for sales to police officers, teachers, firefighters, and emergency medical technicians at fifty 50 % below the appraised value.

Lottery for NonProfits & Gov't Entities

(7 Days)

•Approved nonprofits and government entities are eligible to bid on uninsurable HUD-owned properties. Qualified bids are randomly selected and properties are offered at discounts of up to thirty (30) percent below the list price if in a revitalization area and ten (10) percent below the list price if outside a revitalization area.

•The 5 day period runs concurrently with GNND.

Owner Occupant Sales (15 Days)

•All properties that do not sell through the above mentioned sales methods are listed for an exclusive listing period. During this time, only bids from individual purchasers who intend to occupy a property as their primary residence, qualified nonprofits and government entities will be considered (priority is given to owner occupant bidders).

• 15 Days for insured properties (eligible for FHA 203b loans). 5 Days for uninsured properties (not eligible for FHA 203b loans).

Extended Listing Period

•All properties that do not sell during the exclusive listing period are available for sale for all bidders, including investors.

Bulk Sales Post (60 Days)

•Properties that have been listed for at least sixty (60) days are available simultaneously to both local governments and the general public. Local governments purchasing ten (10) or more properties are eligible for a discount. Properties with a value of $20,000 or less may be purchased for $100. All other properties receive a minimum discount of ten (10) percent of the appraised value of the property.

$1 Home Sales

(180 Days)

•After a property has been offered for sale for one hundred eighty (180) days, is not under a sales contract and has a current market value of $25,000 or less; it will be offered for sale to agencies of local government for a sales price of $1 plus closing costs.

Tenant Right for First Refusal

•Bonafide tenants have the first right of refusal to purchase HUD-owned properties at the appraised value, prior to the property being listed for sale.