HUD has announced it will provide assistance to families affected by this spring’s catastrophic tornadoes in Joplin, MO, and central Alabama, by entering into an unprecedented purchase plan to sell real estate owned properties (REO) to public housing authorities in the impacted areas.

This is a first of its kind pilot program to proactively and effectively target selected HUD homes for sale or lease and making them available to families affected by a significant disaster.  HUD’s goal will be help bring people impacted by natural disaster closer to stability by quickly providing them with an opportunity to purchase or lease HUD homes. If successful, this could lead to a larger effort to manage the large National inventory of HUD foreclosures for sale.

Nearly 90 REO properties in both Alabama and Missouri are available as part of the draft purchase plan. Due to the proximity of Joplin, MO, to neighboring states, HUD is offering REO properties within a 20-mile radius of the city limits. The REO properties are available in the following counties:

• Alabama: Autauga, Calhoun, Elmore, Jefferson, Limestone, Madison, Marion, Marshall and Tallapoosa
• Kansas: Cherokee
• Missouri: Jasper and Newton
• Oklahoma: Ottawa

A list of public housing authorities can be found on HUD’s website.

By adopting new tools for HUD homes for sale and new reporting appraisal methods, along with new out-of-box pilot programs as indicated above, HUD is doing what it can to positively stimulate market forces and eliminate HUD homes sitting vacant…only time will tell if these efforts will pay off but its a good start.