HUD auction fraud

[Jon Klaus]

Owner occupants get priority over investors in the HUD auctions. That means OO's can bid thousands less than investors and still win the auction.

The problem is that I sometimes get beat by an "OO" who really turns out to be a flipper/rehabber. It's not hard to notice when the "OO" puts the home up for sale again a couple months after winning the auction. Not only does this create an unfair advantage, it is fraudulent.

Just looking at my records now, I see in March one where I bid $30507, but an "OO" bid $26500 to beat me. And now this home is for sale. Craigslist and FSBO sign.

Anyone know how (and to whom) to report this activity to hopefully put a stop to it?.

[Greg H.]

@Robert Steele

The buyer signed a form stating that they will occupy for 1 year. The reality is there is no enforcement division within HUD other than you can only purchase as an owner occupant once every 2 years. Feel free to make a complaint but it will go nowhere fast if at all

Your lawsuit will go absolutely nowhere.  How were you injured as there is no guarantee that you would get or even have the opportunity to obtain the property?

While it is frustrating it is reality