Neither an individual nor an investor can purchase a HUD home for $1. And even though individuals who use FHA and are owner occupants can buy HUD homes for $100 down ( ) or certain qualified public servant home buyers can buy homes for 50% of full asking price from HUD, they can’t buy a HUD foreclosure for $1.
HUD’s program provides for local Government Agencies to partner with non-profit organizations to buy FHA foreclosed properties that have been unsold for about 6 months. Or in other words, nobody else wants them because of property condition and other factors that make the property non marketable.
http://www.hud.gov/offices/hsg/sfh/reo/goodn/dhmabout.cfm
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