HUD Policies To Minimize Costs in Acquiring Foreclosed Properties
RCED-88-141BR: Published: Apr 18, 1988. Publicly Released: Apr 18, 1988.
- Full Report:
Pursuant to a congressional request, GAO provided information regarding the Department of Housing and Urban Development's (HUD) policies and procedures for acquiring foreclosed properties.
GAO found that HUD could revise its policies and procedures to avoid certain property acquisitions and reduce costs for those properties it must acquire through: (1) encouraging and providing financial assistance for homeowners to sell their property prior to foreclosure; (2) performing property appraisals before foreclosure sales and subsequently stimulating parties other than lenders to bid; (3) easing restrictions on lenders to facilitate borrowers' voluntary conveyance of property deeds; (4) not delaying foreclosure actions while deciding whether to provide long-term assistance to borrowers; (5) obtaining less expensive title insurance policies; (6) requiring lenders to convey foreclosed properties in a more timely manner; and (7) preserving and securing property under foreclosure in an economical manner.