Why is a HUD Home not listed for sale?

Properties acquired by HUD may display a sign identifying who is managing the property for the period of time before they are listed for sale. During this time, the property is prepared for sale and a determination is made about the property's eligibility for HUD's discount sales programs (see Good Neighbor Next Door Initiatives).  
 
A property may be held off the market when a property, title, occupancy, or other condition delays or prohibits HUD’s ability to market or sell the Property.
Should the adverse condition be resolved, HUD may then list the Property for sale.
 
HUD, at its discretion, may also remove a listing or cancel a sales contract and may return all or a portion of a buyer’s earnest money deposit if:

  • HUD has not acquired the Property;
  • HUD is unable or unwilling to remove valid objections to the title prior to closing; or
  • HUD determines that the buyer is not an acceptable Borrower.  

When a HUD Real Estate Owned (REO) property is available for purchase it will be listed on the HUD HomeStore website at https://www.hudhomestore.com/
 
Properties that have not been conveyed to HUD, including properties in which a deed to HUD has been filed but HUD has not yet accepted the conveyance, are not listed on the HUD HomeStore website. 
 
To search for HUD REO properties for sale in a state, visit the HUD HomeStore website and click a state on the U.S. map or use the Search Properties area to select a state before clicking the Search button. Once you locate a property of interest, click on the Property Case Number for additional information.

For additional information on how to search the HUD Homes website (including saving searches and email alerts) go to the HUD Homestore website and click "Help" on the gray bar in the top right corner of the page. On this page you will find short videos, guides and additional FAQs.
 
If you have additional questions about the property, contact the Asset Manager with jurisdiction over the property.  Contact information for the Asset Manager is also available on the HUD HomeStore website at https://www.hudhomestore.com/ and clicking “Help” in the gray tool bar.

If you are unable to locate the property or the Asset Manager is not listed please contact the FHA Resource Center at 1-800-225-5342 for additional assistance.

For additional information, see Handbook 4000.1 Section IV.B.2.a.iii. 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-03303