Can a tenant purchase a HUD Real Estate Owned (REO) property before it is listed for sale?

The Tenant Right of First Refusal is a tenant’s ability to purchase a HUD Real Estate Owned (REO) Property on a non-competitive basis before it is listed for sale.
HUD’s Asset Manager (AM) will contact eligible tenants regarding their opportunity to purchase occupied Properties at list price under the tenant right of first refusal.
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 and click “Help” in the gray tool bar.
For policy information see Handbook 4000.1 IV.B.2.f.i.

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-03680