24 Cfr 291.90

Office of Assistant Secretary for Housing, HUD
Samoa, the Northern Mariana Islands,
the Trust Territory of the Pacific Islands, and any other territory or possession of the United States.
Tribe has the meaning provided for
the term ‘‘Indian tribe’’ in section 102
of the Housing and Community Development Act of 1974 (42 U.S.C. 5302).
§ 291.10 General policy regarding rental of acquired property.
HUD will lease acquired property to
comply with other designated HUD
programs, or when the Secretary determines that it is in the interest of HUD.
Leases may include an option to purchase in appropriate circumstances.

tions, the procedures for which are described in § 291.210(a);
(2) Direct sales to displaced persons,
sales of razed lots, or auctions, the procedures for which are described in
§ 291.210(b);
(3) Direct sales to other individuals
or entities that do not meet any of the
categories specified in paragraphs (a)
through (d) of this section, under the
circumstances and procedures described in § 291.210(c);
(d) Bulk sales, the procedures for
which are described in § 291.210(d); or
(e) Other sales methods. HUD may select any other methods of sale, as determined by the Secretary.
§ 291.100

Subpart B—Disposition by Sale
SOURCE: 64 FR 6480, Feb. 9, 1999, unless otherwise noted.

§ 291.90

§ 291.100

Sales methods.

HUD will prescribe the terms and
conditions for all methods of sale. HUD
may, in its discretion, on a case-bycase basis or as a regular course of
business, choose from among the following methods of sale:
(a) Future REO acquisition method.
The Future Real Estate-Owned (REO)
acquisition method consists of a property acquisition agreement (or agreements) between HUD and a transferor
(or transferors), which shall provide for
the right and obligation of the transferor(s) to acquire a future quantity of
properties designated by HUD as they
become available. HUD will select such
transferor(s) through a competitive
process, in accordance with all applicable laws and regulations, including the
requirements in § 291.200. The transferor(s) shall have the right and obligation to manage and dispose of the properties upon such terms and conditions
as are approved by the Secretary;
(b) Competitive sales of individual properties. This method consists of competitive sales of individual properties to individual buyers, the procedures for
which are described in § 291.205;
(c) Direct sales methods. There are
three types of direct sales methods:
(1) Direct sales of properties without
insured mortgages to governmental entities and private nonprofit organiza-

General policy.

For all sales, except as otherwise specifically indicated, those sales conducted in accordance with §§ 291.90(a)
and 291.200 or with subpart D of this
part, the following general policies
apply:
(a) Qualified purchaser. (1) Anyone,
including a purchaser from a transferor
of a property pursuant to §§ 291.90(a)
and 291.200, regardless of race, color, religion, sex, national origin, familial
status, age, or disability may offer to
buy a HUD-owned property, except
that:
(i) No member of or delegate to Congress is eligible to buy or benefit from
a purchase of a HUD-owned property;
and
(ii)
No
nonoccupant
mortgagor
(whether
an
original
mortgagor,
assumptor, or a person who purchased
‘‘subject to’’) of an insured mortgage
who has defaulted, thereby causing
HUD to pay an insurance claim on the
mortgage, is eligible to repurchase the
same property.
(2) Neither HUD nor any transferor
pursuant to §§ 291.90(a) or 291.200 will
offer former mortgagors in occupancy
who have defaulted on the mortgage
the right of first refusal to repurchase
the same property.
(3) HUD will offer tenants accepted
under the occupied conveyance procedures outlined in 24 CFR 203.670
through 203.685 the right of first refusal
to purchase the property only if:
(i) The tenant has a recognized ability to acquire financing and a good

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