Utah Real Estate News Clips - Utah Real Estate

HUD program provides big discount for qualified buyers
August 9, 2007

Know anyone who would like to buy a home for a 50 percent discount? It’s hard to believe, but the U.S. Department of Housing and Urban Development has a program that allows homes to be sold at a 50 percent discount — meaning a buyer could purchase a home listed for $100,000 for $50,000. The catch is that the buyer has to be a teacher, law enforcement officer, firefighter or emergency medical technician to qualify.

HUD’s program, called Good Neighbor Next Door, allows eligible buyers to receive the discount if they purchase a single-family HUD home in a designated revitalization area and live in it as their sole residence for three years. After that, they can sell the home and keep any profits. Qualified participants do not have to be first-time homeowners although they must not have owned any residential property for one year prior to making an offer on a Good Neighbor home.

As part of the three-year occupancy agreement, buyers must sign a mortgage note for the discount amount. Once the three years is up, HUD releases the “second” mortgage obligation. If buyers fail to meet the three-year agreement, HUD requires a prorated repayment of the mortgage amount — 1/36 of the discount — for each month short of the commitment.

Properties available for the Good Neighbor Next Door program are available on the Utah Web page of Michaelson, Connor, & Boul, a management company contracted by HUD. Any eligible properties will be listed on Fridays under the “Special Programs” section. No negotiations or offers for less than the list price are allowed for these properties, and buyers must use a HUD-registered real estate agent or broker. If more than one person places a bid, the buyer is selected at random. More information about how to become HUD-registered agent is available on HUD’s Web site.

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