Disposes of one- to four-family FHA properties in a manner targeted to expanding homeownership opportunities.
Nature of Program: The purpose of this program is to dispose of properties acquired by the Federal Housing Administration (FHA) through foreclosure of an insured or Secretary-held mortgage or loan under the National Housing Act. Single family foreclosed properties contain one to four units. Listings of properties in inventory are available on the Internet. Individual parties may submit an offer through the Internet, using a real estate broker licensed with HUD. Nonprofit and government entities may purchase properties at a discount through a lottery system without a real estate broker.
Applicant Eligibility: Individual bidders are eligible if they can finance their home purchase and provide an earnest money deposit with their bids. Nonprofit and government entities have special eligibility requirements, as detailed on HUD's website.
Legal Authority: Section 204(g) of the National Housing Act (12 U.S.C. 1710(g)). Regulations are at 24 CFR part 291.
Administering Office: Assistant Secretary for Housing-Federal Housing Commissioner, U.S. Department of Housing and Urban Development, Washington, DC 20410-8000.
Information Sources: Administering office and HUD Homeownership Centers (Atlanta, Philadelphia, Denver, Santa Ana). On the Web
Current Status: Active.