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Selling HUD Homes to State and Local Governments

Selling HUD Homes to State and Local Governments. October 7, 2008. HUD Homes – Background Information. HUD has an insured loan portfolio of more than 4 million loans Approximately 50,000 properties are conveyed to HUD annually

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Selling HUD Homes to State and Local Governments

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  1. Selling HUD Homes to State and Local Governments October 7, 2008

  2. HUD Homes – Background Information • HUD has an insured loan portfolio of more than 4 million loans • Approximately 50,000 properties are conveyed to HUD annually • HUD sells its REO properties through private companies called Management and Marketing Contractors (M&M)

  3. HUD Homes - Statistics • Over 49,000 HUD homes were sold in FY 2008 for approximately $3.7 billion • As of 9/30/08, there are over 37,000 properties in inventory

  4. Identifying and Bidding on HUD REO Properties Step 1 Identify Geographic Area of Interest Step 2 Determine M&M Contractor for Geographic Area Step 3 Access M&M Contractor’s Website to Identify Available Properties Step 4 Submit Bids (and Offers) According to Website’s Instructions

  5. Philadelphia HOC M&M Contractors

  6. Atlanta HOCM&M Contractors

  7. Denver HOCM&M Contractors

  8. Santa Ana HOCM&M Contractors

  9. Types of REO Sales to State and Local Governments • Standard Discount Sales – Uninsured • Properties are uninsured and located in Revitalization Areas • Offered to Local Governments prior to Public Offering • Properties are offered to Local Governments at 30% below the list price • Properties are offered for a 5 day period

  10. Types of REO Sales to State and Local Governments • Standard Discount Sales – Insured • Properties are insured and located in Revitalization Areas • Offered to Local Governments prior to Public Offering • Properties are offered to Local Governments at 10% below the list price • Properties are offered for a 5 day period

  11. Types of REO Sales to State and Local Governments • Standard Discount Sales – Insured and Uninsured • Properties are located outside of Revitalization Areas • Offered to Local Governments Prior to Public Offering • Properties are offered to local governments at 10% below the list price • Properties are offered for a 5 day period

  12. HUD’s Discount Sales Program - $1 Homes • Properties are not limited to Revitalization Areas • Properties must be marketed by HUD for over 180 days • Available to City and County Governments • Properties are sold for $1 plus closing costs

  13. HUD’s Discount Sales Program - Asset Control Area • Local Government or Approved Non-Profit enters into a 2 year contract with HUD • The contract requires HUD to sell properties in a defined geographic area to the ACA participant • Discount price is based upon the property’s appraised value • Properties limited to revitalization areas • Local Government or Approved Non-Profit must rehabilitate and re-sell the property to income eligible borrowers at 115% of net development costs

  14. How to Reach HUD REO Staff for each HOC REO Directors Santa Ana- Tom Rose (714)796-1200 x3354 Denver- Nancy Sullivan (303) 672-5280 x1665 Atlanta- Ralph Jackson (678) 732-2153 Philadelphia- Cheryl Walker (215) 861-7181

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