If HUD seeks to dispose of Properties through bulk sales, it will advertise and sell these Properties on an all-cash, as-is basis, without warranty and without FHA-insured mortgage financing.
To be eligible for bulk sale discounts, the Governmental Entity or HUD-approved Nonprofit purchasing in bulk must close on all property sale transactions no later than 60 Days from the date the contract is ratified.
If a Property is marketed and remains unsold for 60 Days, HUD may elect to sell the Property to eligible Governmental Entities and HUD-approved Nonprofits as part of a bulk sale as follows:
- properties with an appraised value greater than $100,000 will be priced at a 10 percent discount from the appraised value;
- properties with an appraised value less than or equal to $100,000 will be priced at a 50 percent discount;
- properties with an appraised value less than $20,000, and considered “demolition properties” will be priced at $100;
- participants purchasing 50 or more Properties will receive an additional 5 percent discount; and
- under certain conditions, local governments may purchase Properties that have been listed for 180 Days or more, for $1, plus closing costs.
For policy information see Handbook 4000.1 Section IV.B.2.f.vii. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh