Tenants Wanting to Buy Can Get First Look at FHA Foreclosures

FHA floreclosures

Do you want to buy your first home? On May 5, 2022, the Federal Housing Authority (FHA) announced a new program to help first-time home buyers find property to purchase. Basically, tenants wanting to buy can get first look at FHA foreclosures before investors. The goal is to ensure more single-family properties go toward home ownership than to investors who turn the homes into rentals.

What is the program?

Tenants Wanting to Buy Can Get First Look at FHA Foreclosures
  • For the first 30 days that a foreclosed property is listed for sale, only owner-occupant buyers, approved nonprofits, and government entities can make an offer.
  • Once a sales contract is signed, a buyer has an additional 60 days to secure financing and close the purchase.
  • The program must be implemented for all post-foreclosure sales by early August.

How to participate?

Tenants Wanting to Buy Can Get First Look at FHA Foreclosures
  • Contact an agent and tell them that you want to look at FHA foreclosure.
  • Owner-occupant buyer provides a signed statement that states intent to use the property as a principal residence.
  • Nonprofit buyers get preapproved by HUD.
  • Government entities submit a signed statement on their letterhead stating they are a government entity.

Contract Details

Tenants Wanting to Buy Can Get First Look at FHA Foreclosures
  • Buyers have a minimum of 15 days after the contract signing to cancel the purchase if there is an issue with the property’s condition.
  • Purchasers can cancel the contract up to 7 days before the closing date due to issues with the title.

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