Dateline: 08/01/02

The Department of Housing and Urban Development will hand over a check for $1000 to homebuyers who sign a contract to buy a HUD-listed single-family home by Sept. 30, 2002.

Effective June 31, the HUD $1,000 Cash Back Move-In Allowance will be given to the buyer at closing and can be used for any expenses such as moving costs and home repairs. The buyer is required only to close the sale transaction within 30 days after the contract is accepted and agree to live in the house as his or her primary residence for the next 12 months.

"The Bush Administration is committed to increasing the number of Americans, particularly minorities, who own their own homes," said HUD Secretary Mel Martinez. "We believe this incentive program will help more people become first-time homebuyers by purchasing one of HUD's single-family homes."

About Buying a HUD Inventory Home
Single-family homes sold by HUD, a massive cabinet-level agency, are made available at auction whenever a lender forecloses on a home insured with a HUD mortgage. HUD first pays the lender the amount owed on the home and then attempts to sell it at auction as soon as possible for no more than market value. The lender gets off the hook and, since the homes are sold at auction, buyers sometimes get them at prices well below appraised market value.

Anyone who can qualify for a mortgage or has the cash is eligible to buy a HUD home.

All HUD Homes are offered for sale at market value as established by an appraisal. Since the properties are sold "as is" there is often an opportunity for a homebuyer to earn "sweat equity" by making repairs after the sale.

While bidding on HUD homes is now conducted entirely on the Internet, only the buyer's real estate agent can enter bids. When a property is first listed for sale, priority will be given to owner-occupant purchasers for the first 10 calendar days, described as follows: 

• All owner-occupant offers received during the first five days of this 10 day period will be reviewed on the first business day following the expiration of the five day period. 
• All owner-occupant offers received are reviewed and the property is awarded to the highest acceptable net owner-occupant bidder. 
• If there are no offers during this initial five-day bid period, daily bid openings are conducted for the remaining five-day owner-occupant priority period. 
• At the conclusion of the 10-day owner-occupant priority period and the property remains unsold, bids from investor purchasers will be considered.

There are approximately 30,000 single-family homes in HUD's inventory of properties, and they can usually be found in every state as well as Puerto Rico, Guam and the Virgin Islands. 

For more information, and links to HUD' listings of available properties, see: Buy a HUD Home and Save Money

About HUD Briefly
As the nation's housing agency, HUD works to increase homeownership by creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. In addition, HUD promotes economic and community development, and enforces the nation's fair housing laws. For more information, see the HUD Web site.

• More Government Sales and Auctions
What does the government have going for it when it comes to online sales success? Diversity. From Treasury bills to wild horses and houses, you name it and a government Web site probably sells it.