The Federal Housing Administration doubled its exclusive listing period on certain HUD single-family and real estate-owned homes that will give owner-occupant buyers more time to bid on the properties ahead of investor competition. HUD-approved nonprofit organizations and government entities also will be able to submit bids to purchase the homes before they’re eligible to buy from investors.
The agency’s extended exclusive period is an effort to make more HUD-owned properties available to owner-occupants and non-profit organizations, according to a HUD press release.
The extended exclusive listing period for bids will begin on March 1. Individuals, families, HUD-approved nonprofit organizations, and government entities will then have 30 days to review new listings of single-family homes on HUD’s REO sale site, HUD HomeStore. That is up from a 15-day exclusive period that is currently in place.
The homes must be listed as “insured” or “insured with escrow” to qualify. The exclusive listing period applies to one-to-four family real estate-owned properties eligible for financing under the Federal Housing Administration’s 203(b) program. The program typically finances up to $10,000 in renovations unrelated to the home’s structure.
“By extending the time frame 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,” says Lopa P. Lolluri, principal deputy assistant secretary for housing and the Federal Housing Administration.
The housing market has faced a limited number of lower priced properties in the hot housing market. Investors and buyers have gone head-to-head for the limited pool of properties. Foreclosures are also drying up, limiting opportunities even more.