Important terms to know:
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First Look Period Eligible buyers and owner-occupants dedicated to accessing more affordable housing will have exclusive first-look access to bid on selected auction properties listed on Xome. During the First Look period, only offers from select purchasers determined by program requirements will be considered. Please refer to each individual property’s details on Xome for more information. HUD-approved Nonprofit A legal entity organized and operated for a collective, public, or social benefit as opposed to making a profit, having a minimum two years of relevant housing experience within the last five years, and appears on the list of HUD-approved nonprofits. |
The original first look program, Seller Select First Look, was created as a way to help generate more opportunities for owner-occupants, governmental entities, and nonprofit organizations to purchase select bank-owned (also known as REO, or real estate owned) Fannie Mae properties.
The introduction of a HUD First Look program now offers more opportunities for eligible buyers to access HUD properties under the Claims Without Conveyance of Title program (CWCOT, also referred to as second chance foreclosure) properties.
The state of California has also introduced its own California First Look program, which creates additional opportunities for eligible buyers to purchase participating second chance CWCOT and REO properties.
Each program has certain things to be aware of when it comes to who is qualified to make offers on and buy these properties, as well as the length of the First Look exclusivity period.
Let’s take a look at what makes each program different:
First Look period for Seller Select properties
Seller Select properties, otherwise known as bank-owned or REO, are properties on the market for the first time since they failed to sell at foreclosure.
The First Look period for Seller Select First Look properties is the first 35 days the property is on the market. During that timeframe, only qualified buyers may submit offers on and purchase these properties. These are limited to owner-occupants, governmental entities, and nonprofits. Unlike HUD First Look properties, nonprofits wanting to purchase aSeller Select First Look property do not have to be approved by HUD.
First Look period for HUD First Look properties
HUD First Look properties, otherwise known as CWCOT or second chance foreclosure, properties are foreclosure properties being given their “second chance” to be sold at an online auction.
The First Look period for HUD First Look properties is the first 30 days the property is on the market. While in the First Look period, owner-occupants may place pre-auction offers on Xome.com. Governmental entities and HUD-approved nonprofits may submit offers on and purchase these properties by contacting the National Community Stabilization Trust (NCST).
First Look period for California First Look properties
Select second chance CWCOT properties and REO properties located in the state of California may also be available in the California First Look program. The exclusivity period is the same as for other First Look second chance CWCOT properties, which is 30 days.
For California First Look properties, qualified buyers may place pre-auction offers using Xome.com. These buyers are limited to California-based owner-occupants, California-based nonprofits, governmental entities, California-based community land trusts, California-based limited equity housing co-ops, and Regents of the University of California.
Properties may qualify for both the California First Look program as well as the HUD First Look program, so buyers should view the individual property details in order to determine which program they are eligible to participate in.
Quick info on the First Look period
Seller Select properties
| Asset type: | Bank-owned |
| Exclusivity period: | 35 days |
| Who can submit offers and buy: | Eligible buyers (owner-occupants, all nonprofits, governmental entities) |
| Property types: | Residential (single family, multi family, modular, mobile) |
HUD First Look properties
| Asset type: | CWCOT second chance |
| Exclusivity period: | 30 days |
| Who can submit offers and buy: | Eligible buyers (owner-occupants, only HUD-approved nonprofits, governmental entities) |
| Property types: | Residential (single family, multi family, modular, mobile) |
California First Look properties
| Asset type: | CWCOT second chance, first-party REO, third-party REO |
| Exclusivity period: | 30 days |
| Who can submit offers and buy: | Eligible buyers (California-based owner-occupants, California-based nonprofits, governmental entities, California-based community land trusts, California-based limited equity housing co-ops, Regents of the University of California) |
| Property types: | Residential (single family, multi family, modular, mobile) |