Does HUD sell vacant lots as part of its HUD Real Estate Owned (REO) Single Family Property disposition programs?

A Vacant Lot is a Property without improvements or Structures.
HUD may raze or demolish Structures or offer the vacant lot for sale where Properties are so damaged that repair by HUD or the buyer is not feasible and where one of the following conditions exist:
  • the Property has already been unsuccessfully offered for sale in its as-is condition;
  • a local ordinance or agreement prohibits as-is sales of such Properties; or
  • the Structure must immediately be razed by HUD to remove a serious public hazard.
Where there is no immediate need to raze the Property or where it would be otherwise inappropriate to sell the Property as-is, HUD may sell the Property with the requirement that the buyer raze the Structure after sales closing.
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 Section IV.B.2.a.ii. at

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-03692