On
April 24, 2006, HUD announced two methods by which it would sell
HUD homes at a discount to evacuees displaced by Hurricanes Katrina,
Rita or Wilma. Read the Press
Release and more information below.
Is
there a special HUD program that allows hurricane evacuees to purchase
HUD homes?
This
special program that allowed hurricane evacuees to purchase HUD
homes nationwide ended December 31, 2007.
Is
a hurricane evacuee who is presently renting a HUD home eligible
to buy the home?
An
evacuee displaced by Hurricanes Katrina, Rita or Wilma who is presently
renting a HUD home is eligible to buy the home, and can buy it at
a 10% discount from its fair market value. In addition, HUD will
fund a repair and maintenance escrow equal to 15% of the discounted
purchase price to help pay for any repairs that may be needed to
fix the home and to pay delinquent utility accounts. HUD will also
pay up to 5% of the discounted sales price toward reasonable and
customary closing costs for the buyer. The buyer must purchase the
property with an FHA mortgage or with all cash.
The
renter may purchase the home at any time during the lease period
but must notify HUD's Management and Marketing (M&M) Contractor
of the intent to purchase no later than 60 days prior to the expiration
of the lease of the intent to purchase. Tenants will be notified
in writing by the M&M contractor of the ability to purchase
the home. The M&M contractor will also notify the tenants by
mail of the names and locations of housing counselors in the area
so that the tenants can take advantage of these counseling services.
Buyers
are required to occupy the home for one year from the closing date
of the sale.
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