What is the method and time frame that I can buy a house from HUD for a $1.00?

jimboboy-ga,


You can actually see a fair number of properties that HUD sold for a
pittance ($1-$10, and some for $0.00!) included on this list of
multi-family housing sales:


www.dynaccsys.com/hudsales 
HUD Multifamily Property Sales


I asked HUD about these, and their reply is below, but in a nutshell,
the housing is sold to local governments, or to non-profits working in
cooperation with local governments.

I believe the HUD response should fully answer your question, but if
there's anything else you need, feel free to contact HUD at the email
address below, or just let me know what you need by posting a Request
for Clarification.

Cheers,

pafalafa-ga


===============


To: gail_prater@hud.gov
Subject: multi-family sales 

Hello.

I was looking over the list of multifamily HUD properties that have been sold:


www.dynaccsys.com/hudsales 


and I noticed that quite a number of properties are sold for trivial
amounts -- one dollar, ten dollars, etc. The sales are made to both
Housing Authorities and to individuals.

>>Those nominal sales are to Units of Local Governments, ULGs (Cities
or Housing Authorities) under Right of First Refusal. Please
understand, these sales are based on a property having a negative
value due to low income, high expenses, and poor condition. The ULG is
require to repair, maintain as affordable, and agree to equity
participation. The Equity Participation requires all profits from a
city sell of the property be returned to HUD<<
 

Can you give me more information about this? In particular:


--How does one find out about the availability of such properties?

>>These sales are only available to ULGs<<

 
--What are the general sorts of conditions/requirements attached to such sales?

>>A nonprofit may align themselves with a city for a possible transfer<<


--What does a potential buyer have to bring to the table?

>>These types of sales are not available to the general public. All
sale to the general public must be competitive<<


--Are sales made through specific arrangements, or do they simply
occur in a public auction process, with a bidder offering a dollar,
and no one else offering a higher bid?

>>I'm not aware of any sales where HUD accepted a one dollar bid at a
competitive oral bid sale. In this case, HUD would cancel the sale and
re-advertise the sale<<



Again, check with HUD or get back to me if there's anything more you need.


paf

"Sorry, those $1.00 houses are figments of some high-priced
copywriter's imagination."
Why Tax Sales Offer The Best Deals
http://www.talewins.com/rs002cos.htm

Actually, the one-dollar houses are/were real.  HUD provides/ed houses
for one dollar to cities and redevlopment authorities, not individuals
though.

In real estate, you get what you pay for.

Houses that sell for one dollar come with problems.  Physical problem,
tax problems, legal problems, neighborhood problems, social problems,
zoning problems.  Those problems can come with substantial price tags
to fix properly.

If you can persuade the owner that you understand the problems and are
wiliing to take on the risk or the responsiblility of solving those
problems, then buying a house for one dollar makes sense.

The dollar makes the transaction legal (actual consideration for
property), but the true benefit to the owner is getting rid of the
problems.  And if the owner is a government, it will probably want
that benefit to go to the greater community or neighborhood.

Bruce Rock, Western Australia, blocks of land free except for transfer
fees and associated costs.

Recently, for the second time, building blocks were free in Bruce Rock.