The US Department of Housing and Urban Development (HUD), in a Draconian move, would appear to be forsaking their Mission Statement while attempting to cash in on investor hysteria. Regardless of which Side of the Aisle you may be, the latest move to allow Investors to enter into the purchasing arena in a fraction of the previous time previously. When is this slated to occur? 01 December, 2013; 72 hours from now! Before we go further, though, let's take a look at HUDs Mission Statement:
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
Mark Ferguson, over at InvestFourMore, summed up the time line pretty good,
Right now on FHA insured HUD homes there is a 30 day owner occupant bid period. The first 10 days are a sealed bid period for owner occupants only and then the next 20 days are a daily bid period for owner occupants. Investors cannot bid during this time frame and I have had many investors complain to me about this policy. There is now going to be a 15 day owner occupant bid period on FHA insured HUD homes. The the initial 10 day sealed bid period will stay the same, but now there will only be a 5 day daily bid period for owner occupied buyers only after that initial 10 day bid period. Investors can bid on HUD homes on the 16th day and will not have to wait until the 30th day. This change goes into effect on December 1st 2013. FHA uninsured homes bid periods will not change. They will still have a 5 day owner occupant only bid period and investors will be able to bid on the 6th day.
An Industry Insider, speaking on condition of anonymity, told me in a recent email exchange,
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