Homesteaders Will Have 30 Days to Buy FHA REOs
After March 1, resident-owners will have 30-day exclusive access to bid on homes foreclosed by FHA before the government opens a sale to investors.
WASHINGTON – The Federal Housing Administration (FHA) on Thursday announced it is increasing its exclusive listing period on certain HUD single-family real-estate owned (REO) homes to allow more time for owner-occupants, HUD-approved nonprofit organizations, and governmental entities to submit purchase bids before investors become eligible.
At the moment, Florida only has 14 listings for HUD-foreclosed homes, but that number is expected to grow as forbearance programs end.
This expansion is part of the government’s goal, announced Sept. 1, 2021, to make more HUD-owned properties available to owner-occupants and non-profit organizations.
Beginning March 1, 2022, the exclusive listing period will increase from the current 15 days to 30 days for new listings of single-family homes listed as “insured” or “insured with escrow” on HUD’s REO sale site, HUD HomeStore. Properties with those designations are eligible for FHA-insured financing under the FHA 203(b) program, meaning they meet FHA’s minimum property standards and may only require cosmetic repairs or non-structural repairs up to $10,000.
“FHA is actively supporting the (Biden) administration’s efforts to increase the supply of affordable housing and provide more opportunities to those who have traditionally faced barriers to homeownership,” says Principal Deputy Assistant Secretary for Housing and the Federal Housing Administration Lopa P. Kolluri. “By extending the timeframe individuals have to bid on an REO property, we are offering families a better chance to purchase a quality HUD-owned home to live in, build equity and create generational wealth.”
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