WASHINGTON The Department of Housing and Urban Development has imposed a 120-day suspension of home sales under its Officer Next Door and Teacher Next Door programs after uncovering cases of fraud.
The announcement of the suspension was made Thursday in the wake of nine felony convictions and 15 indictments involving home purchases under both programs.
In February, HUDs Office of the Inspector General reported that both programs were vulnerable to fraud and that management controls were inadequate.
The programs allow police officers and teachers to buy HUD-owned single-family homes at a 50% discount in designated revitalization areas. The homes are FHA-insured houses on which the previous owners defaulted.
Bidding on other FHA-foreclosed properties by the general public will not be affected by the suspension, HUD said.
