Can HUD employees, or members of their household, purchase HUD Real Estate Owned (REO) Properties?

HUD employees and members of HUD employees’ households are eligible to purchase HUD Real Estate Owned (REO) Properties as Owner-Occupant Buyers if:
  •  they do not currently own a house and can demonstrate and certify that they will occupy the Property as their Principal Residence for at least two years;
  •  they have not purchased a HUD-owned Property within the past 24 months as an owner occupant; and
  •  they are not prohibited buyers. 
Eligible HUD employees and members of their households must obtain supervisor and Office of Single Family Asset Management (OSFAM) approval before bidding on a HUD-owned Single Family house.

The following HUD employees and their household members are prohibited from purchasing HUD REO Properties:
  • all HUD management personnel who are part of the management chain that has authority over the Single Family REO disposition process;
  • all Headquarters Office of Single Family Asset Management (OSFAM) employees;
  • all HUD employees that have direct or indirect responsibilities for policy development, procurement, and disposition of Single Family REO Properties; and
  • all Homeownership Centers (HOC), Field and Regional offices’ employees that have direct or indirect oversight of the responsibilities of Management and Marketing (M&M) contractors.

For policy information see Handbook 4000.1 Section IV.B.2.d.v.-vi. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02057