Real
Estate Owned (REO) Properties available for purchase at a discount
Since
the week of May 1, 2006, HUD homes have been made available for
purchase by hurricane
evacuees at a discount.
Procedures
for Making Real Estate Owned (REO) Properties temporarily available
to Disaster Victims
The
Federal Emergency Management Agency (FEMA) website, lists counties
affected by a Presidentially-Declared disaster and the corresponding
declaration dates.
Under
a Memorandum of Understanding (MOU) between the Department and FEMA,
acquired properties must be made available to temporarily
house victims in areas declared by the President to be major disaster
areas. Pursuant to the terms of the MOU, following the declaration
of a disaster, FEMA must request that HUD implement the MOU, as
follows:
-
FEMA
Request for a List of Available Properties. FEMA will request
a list of available properties. Eligible properties are habitable,
not under lease or sales contract nor committed to another use
or program, and ready for immediate occupancy.
-
Distribution
of List
-
Leasing
to Disaster Victims. HUD's Management
and Marketing Contractor will rent directly to the
disaster victim, as follows:
-
LEASE:
the occupant must execute a lease, Form HUD-9532.
- TERM:
The term of the lease is month-to-month only, with assistance
not to exceed one year and subject to termination when the
REO Director determines the emergency is over.
- MAINTENANCE
AND OPERATING COSTS: HUD is responsible for payment
of property taxes and maintenance costs normally required
of a landlord pursuant to local law.
- RENT:
The rental rate will be set by the REO Director at the amount
deemed appropriate under the circumstances and in the best
interest of HUD. In determining the rental rate, it is important
to consider that FEMA will provide disaster victims with a
rent check in an amount based on the fair market rent in the
affected area for a predetermined number of months.
The Management and Marketing Contractor may be used to assist
the REO Director in determining an appropriate rental rate,
but the REO Director must approve the rental rate and advise
the disaster victim of the rental rate prior to occupancy.
New
Loan and Servicing Options
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