- The HUD employees and their household members, prohibited from purchasing HUD REO properties, are as follows:
- all HUD management personnel who are part of the management chain that has authority over the Single Family REO disposition process;
- all headquarters Office of Single Family Asset Management employees;
- all HUD employees that have direct or indirect responsibilities for policy development, procurement, and disposition of Single Family REO Properties; and
- all Homeownership Centers (HOCs), field and regional offices’ employees that have direct or indirect oversight responsibilities of Management and Marketing (M&M) contractors.
- HUD’s REO Marketing and Management Contractors, Subcontractors, a Management Official of the Contractor or Subcontractor, an Immediate Family member of a Management Official of the Contractor or Subcontractor, and Affiliated Entity of the Contractor or Subcontractor, and any other Entity under contract with HUD who prepares reports used as the basis for a List Price or acceptance of a bid on any HUD REO property:
- This includes Listing Brokers and their agents/employees;
- Appraisers (or their family members) that perform appraisals on HUD-owned properties.
- Members or delegates of the United States Congress are prohibited from purchasing or benefiting from a purchase of a HUD REO Property.
- Former Non-Occupant Borrowers of FHA-insured Mortgages, whose Default resulted in HUD’s payment of a mortgage insurance benefits claim to a Mortgagee, are prohibited from repurchasing the same Property that secured the FHA-insured Mortgage.
To determine one’s eligibility to purchase HUD REO Properties, HUD M&M contractor staff should contact their respective Government Technical Representative (GTR) for information.
See policy in Handbook 4000.1 Section IV.B.2.d.vi. at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh