A wide swath United States Department of Housing and Urban Development (HUD) Contracts are going to be rebid and issued as I type this. My understanding from Sources within and without the US Government is that the totality of modifications to the HUD 3.6 will be one of the largest in recent memory. We will talk a bit about that today and in more detail as the weeks go on. We have confirmed through two Sources that the Contract awarded to Sentinel Field Services (SFS) is being eyed for transfer to AMSREO with some Sources tracking the move within 60 days. Whether this will be a temporary or permanent move is unknown if it does go through. We reached out to SFS for an official statement to confirm and none was forthcoming at publication.
HousingWire’s Megan Hopkins is reporting that over the next two years the supply of (HUD) foreclosures will “…increase significantly.” Supply and demand. Now, we all know the problems that the robosigning brought about and the supposed safety mechanisms put in place to begin to address the aforementioned. As current Bank REO Property Inventory begins to make its way onto the Market, many of these homes are destined to be rolled into the HUD REO Inventory.
The HUD Marketing and Management (M&M) Contract is what moves HUD REO Properties from foreclosure into ownership. While Institutional Buyers have been making up well over 70% or more of current purchases, it is anticipated that homeowners will begin to reenter the Market as Banks begin to release liquidity in the form of loans.
“Since 1999, HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process. M&M Contractors manage and market single-family properties owned by, or in the custody of the Department. HUD-owned houses are often referred to as HUD Homes. These are homes that had an FHA-insured mortgage, the homeowners defaulted, and the lender foreclosed. The lender then deeded the home to the Secretary of HUD in exchange for an insurance claim payment.
Under prior agreements, M&M contractors were responsible for both maintenance and marketing of the Department’s real estate-owned or REO properties. However, under M&M III these functions have been separated to increase the effectiveness of the Department’s asset disposition program.”
So, as the banks begin to roll out properties into Bank REO Inventory; as the trickle effect of both zombie and shadow foreclosure inventory begin to appear on the radar, the movement of aforesaid into the HUD REO Inventory is almost guaranteed in large numbers. Now, we all know about the fiasco HUD encountered when it attempted to accept obscenely low bids which could not be justified. Both the Awardees and HUD are now scrambling to realign their priorities.
We believe, with reasonable certainty, that a Sources Sought will be issued in the next several months with respect to more than one half of the United States.
Look, folks. If you do not have a DUNS and SAMS account you are not a Player. Further, HUD is not going to play games this go around. Accordingly, the Firm’s hiring Contractors for positions are NOT going to roll the dice with unvetted people. Foreclosurepedia is able to put you in the field; with both our Sources and implementation of Business Packages, we are able to ensure that no stone is left unturned in your quest for dominance in the Property Preservation Industry. Feel free to reach out today to schedule a Review, Consultation or Business Package.