What happens if a purchaser who buys a home under a Good Neighbor Next Door program fails to close on the purchase?

Under the Good Neighbor Next Door (GNND) program, HUD selects the winning bidder randomly by lottery. In addition, HUD allows up to two back-up bids for GNND properties. Should the winning bidder’s sale fail to close, HUD may offer the Property to back-up bidders before relisting the property.

For additional information please contact the Asset Manager with jurisdiction over the property.  To locate contact information for the Asset Manager please visit the HUD Homestore website at https://www.hudhomestore.com/ and click “Help” in the gray tool bar.

 For policy information, see Handbook 4000.1  IV.B.2.f.iv. and IV.B.2.g.iii. available 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-03427