HUD Announces Exclusive Listing Period Extension on HUD REO Properties

HUD recently published Mortgagee Letter 2022-01 announcing an extension to the Exclusive Listing Period on HUD’s single family (one- to four-unit) Real Estate Owned (REO) properties, effective March 1, 2022.  The Exclusive Listing Period at issue limits the time period for bidding on properties marketed as “insured” or “insured with escrow” to buyers that are eligible governmental entities, HUD-approved nonprofits, and owner-occupants.

The Mortgagee Letter extends this Exclusive Listing Period from 15 days to 30 days.  Bids received in the first 10 days will continue to be treated as received simultaneously, and, if none of those bids are accepted, bids received during days 11 to 30 will be opened and reviewed.  If, after the 30 day Exclusive Listing Period, a bid has not been accepted, the listing will be opened to all buyers in an extended listing period. 

The extension is part of the Biden-Harris Administration’s effort to “increase the supply of affordable housing available to first-time and low- and moderate-income homebuyers.”