A recent Wall Street Journal article says that HUD is considering allowing investors to bid on groups of foreclosed homes. Here’s a blurb:
“Another big seller is the Department of Housing and Urban Development, or HUD, which operates the Federal Housing Administration. The FHA insures banks and investors against losses on mortgages, and ends up owning foreclosed homes. The average time it takes to sell has grown to 196 days from 175 a year earlier, says Laurie Maggiano, a HUD official.
About 30% of HUD’s homes are in Ohio and Michigan. In those states, HUD late last year began offering a $2,500 rebate to buyers. HUD also has programs that allow buyers to make down payments of as little as $100.
HUD also has programs under which it sells homes at deep discounts, and sometimes for as little as $1, to local nonprofit developers who provide housing for low-income people. Ms. Maggiano says HUD is looking at ways of letting investors bid for large groups of homes.”
No further information about this plan is available and there is no clarification whether the group bidding would be available only to nonprofits or whether it would be open to private investors. We’ll be watching this story carefully and will post any new information as it becomes available.
See Also: List of HUD Foreclosure Homes for Sale