HUD Listing agent says I can't market property....

[Priscilla Z.]

I successfully wholesaled two HUD properties at the end of last year with no problem whatsoever. I'm onto my third one and apparently the listing agent has seen my bandit signs and is giving my realtor a hard time about me marketing the property before I close on it. He says it's against HUD policy and she can lose her ability to sell (I'm assuming he means HUD homes). My realtor is not too concerned about it and is looking into this so called "policy" but I'm getting annoyed so I need to educate myself on this so I can be ready for the next time he says something.

Can any of you HUD wholesalers help me out with this?

[Joel Owens]

HUD constantly changes rules and regs all the time. I know that it used to be for instance you cannot put ANY SIGNS period on the property. You can however put signs at the subdivision or streets etc. providing that the subdivision or area allows it etc.

This was from years ago so things could have changed.

It sounds like you are putting HUD properties under contract and then assigning them before you close?? I do not believe HUD allows that kind of thing. Are you bidding during owner occupant period or investor??

Sounds like what the listing HUD broker is saying is that they cannot be involved in the type of transaction that you are putting together as it is against HUD selling procedures and they can lose their listing status with HUD.

I do not do residential but I would not put my livelihood on the line for a wholesale buyer trying to work the system to make money.