Senator Schumer Continues Crusade Against HUD Foreclosure Flippers

February 16, 2008

New York Senator Charles Schumer continued his fight against HUD foreclosure investors by asking the government agency to make several key changes to the HUD purchase process. According to the Buffalo News, Schumer is calling for the following reforms:

• Changing HUD policies to prevent the online flipping of homes to absentee landlords.

• Providing incentives to property disposal contractors who sell HUD homes to owner-occupants. Kathleen Lynch, coordinator for the city’s Anti- Flipping Task Force, says such sweeteners would help get properties into the hands of people who will make improvements.

• Expanding the time during which properties would be offered exclusively to buyers who promise to live in the homes.

The changes may make it easier for owner-occupant bidders to purchase HUD homes with low-ball bids. However, they will certainly make it challenging for HUD investors to continue purchasing these low-cost properties.

Written by admin · Filed Under hud foreclosure 

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