How can a HUD-approved Nonprofit organization purchase a HUD Real Estate Owned (REO) Property at a discount?

Nonprofit organizations, including Nonprofit Instrumentalities of Government that have been approved by HUD to participate in FHA nonprofit programs, are eligible to purchase HUD Real Estate Owned (REO) Properties. 

Nonprofits are included in the definition of Owner-Occupant Buyers and may purchase Properties during the same periods as Owner-Occupant Buyers.

 

For Direct Sales, Nonprofits may purchase HUD REO Properties at the following discounts on the list price:

 

30 percent off the list price for uninsured Properties located within a Revitalization Area;

10 percent off the list price for insured or uninsured Properties located outside of a Revitalization Area;

10 percent off the list price for insured Properties located within a Revitalization Area; and

15 percent off the list price for insured or uninsured Properties located outside of a Revitalization Area and insured Properties located in a Revitalization Area when:

the Asset Manager (AM) has accepted five or more bids from the Governmental Entity or HUD-approved Nonprofit within a 15-business day period;

and the sales are closed in a single transaction.

 

Nonprofits must submit bids for HUD REO Properties electronically through HUDHomestore.

 

In order to submit bids through HUDHomestore, Nonprofits must have applied for and been issued a Name and Address Identification Number (NAID) and be registered on HUDHomestore or successor site.

 

Using Google Chrome is strongly recommended when accessing the NAID Application Portal.

 

For guides and short videos on Registering as a Bidder, and, Submitting a Bid, go to https://www.hudhomestore.com/ListingSiteFAQ.htm

 

The applicant may send a request for additional information by email to answers@hud.gov or call the FHA Resource Center at 1-800-225-5342.

 

For policy information related to:

 

Obtaining approval to participate in FHA’s Single Family nonprofit programs see Handbook 4000.1 Section I.B.4.

Bidding on HUD REO Properties see Handbook 4000.1 Sections IV.B.2.d.iv & IV.B.2.g.

Handbook 4000.1 is 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-03667