HUD/FHA foreclosures or REO sales of apartments, townhouses, nursing homes, hospitals, elderly housing, mobile homeparks, retirement service centers, vacant land, etc.

Why Does HUD Have Property for Sale?

The Federal Housing Administration (FHA), which is a part of HUD, has programs through which it insures mortgages or provides direct loans on multifamily properties. When a mortgagor becomes delinquent on a loan insured by FHA, the mortgagee can assign the mortgage to HUD and receive the benefits of the FHA mortgage insurance. The mortgage then becomes a HUD-held mortgage and if it cannot be reinstated, HUD forecloses.

What is a Multifamily Property?

Multifamily properties consist primarily of rental housing properties with five or more dwelling units such as apartments or town houses, but can also be nursing homes, hospitals, elderly housing, mobile home parks, retirement service centers, and occasionally vacant land.

What is Multifamily Property Disposition?

Multifamily Property Disposition is the program through which HUD forecloses on HUD-held multifamily mortgages, sells HUD-owned multifamily properties, and manages HUD-owned properties and properties where HUD is mortgagee-in-possession.

When Does HUD Offer Multifamily Property for Sale?

If you are interested in purchasing these types of projects, your first opportunity would be at the foreclosure sale.

A possible second opportunity might occur if HUD acquires a property, either through a foreclosure on the HUD-held mortgage or through the taking of a deed-in-lieu of foreclosure. However, state and local governments, and public housing authorities, have a right of first refusal to purchase HUD-owned multifamily properties, so many HUD-owned properties are not available for sale to the public.

Each Wednesday, HUD updates its Weekly Listing of foreclosure sales and sales from the HUD-owned inventory.

I've Seen Your Weekly Listing of Multifamily Property for Sale - - Now What?

If you are interested in one or more of the properties on the Weekly Listing, phone or write HUD's field office contact person named on the list for each property in which you are interested. Please provide a full mailing address. The field office contact person will mail you a Bid Kit which contains the terms and conditions of the sale.

What are Some of the General Terms and Conditions for these Sales?

HUD currently does not provide any financing to purchasers.

All sales require an earnest money deposit.

Most rental housing properties need repairs and are sold with provisions that the purchaser either repair them to code or demolish them within a set period of time.

Mailing List

HUD maintains a mailing list of individuals and firms interested in being informed of the availability of multifamily projects for sale. You may be added to the mailing list, or deleted, by writing or telephoning as indicated below (do not use e-Mail for this.)

HUD Multifamily Project Sales
Dept. HMPDP
P.O. Box 25367
Richmond, VA 23260
Tel. (804) 786-9765 (Voice Mail, not toll-free)

Contracting Opportunities

If your company provides high quality supplies, services, or products to multifamily properties and you are seeking to expand your business opportunities, you should consider contracting possibilities with HUD's Multifamily Property Disposition Program. Working with HUD offers new opportunities to use your know-how, develop new markets, and help upgrade the Nations' housing supply. Moreover, HUD pays competitive prices, promptly.

See HUD's Contracting Page for more information.

I Have Some General Questions About Multifamily Sales - - Who Can Answer Them?

If you have general questions or comments about multifamily sales, write our webmaster.

Looking for a House, Not an Apartment?

If you are looking for information on properties with one to four units, go to the HUD Home Page at www.hud.gov and click on "HOMES". You may also be able to get information on HUD HOMES for sale in your area if you go to the WWW Home Page of your local HUD Office , or call 1 (800) 767-4483, the HUD HOMES HOTLINE.