An evacuee displaced by Hurricanes Katrina, Rita or Wilma who is presently renting a HUD home is eligible to buy the home, and can buy it at a 10% discount from its fair market value. In addition, HUD will fund a repair and maintenance escrow equal to 15% of the discounted purchase price to help pay for any repairs that may be needed to fix the home and to pay delinquent utility accounts. HUD will also pay up to 5% of the discounted sales price toward reasonable and customary closing costs for the buyer. The buyer must purchase the property with an FHA mortgage or with all cash.
The renter may purchase the home at any time during the lease period but must notify HUD's Management and Marketing (M&M) Contractor of the intent to purchase no later than 60 days prior to the expiration of the lease of the intent to purchase. Tenants will be notified in writing by the M&M contractor of the ability to purchase the home. The M&M contractor will also notify the tenants by mail of the names and locations of housing counselors in the area so that the tenants can take advantage of these counseling services.
Buyers are required to occupy the home for one year from the closing date of the sale.
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