Cape Coral Florida's Real Estate Guide

FHA: Changes system for selling HUD homes

WASHINGTON - June 15, 2010 - The U.S. Department of Housing and Urban Development (HUD) announced that 23 companies will serve as Asset Managers (AM) and 32 other firms will serve as Field Service Managers (FSM) under its Management and Marketing (M&M) program, known as M&M III.

Under M&M III, the functions of maintaining and selling the property have been separated. The Field Service Managers will be responsible for property maintenance and preservation and the Asset Managers will be responsible for the sale of the homes. HUD hopes the change will reduce risk, increase sale prices and accelerate the pace of reselling HUD's inventory of foreclosed FHA homes.

Under prior agreements, M&M contractors were responsible for both maintenance and marketing of the Department's real estate-owned (REO) properties, but each function requires significantly different skill sets, thereby increasing the effectiveness of the program.

"These new contracts epitomize FHA's continuing effort to reduce risk, increase net returns, decrease holding times and improve efficiency in the resale of its inventory of foreclosed properties," said HUD Secretary Shaun Donovan. "It is critically important that FHA successfully and efficiently sell its inventory of these properties, and these contractors will help us do that."
 
HUD's current inventory of foreclosed FHA property is approximately 44,000 homes. That is up from the usual average level of 35,000 to 40,000.

© 2010 Florida Realtors®