# Prohibited Purchasers in Foreclosure Sales of Multifamily Projects With HUD-Held Mortgages and Sales of Multifamily HUD-Owned Projects
> **US Department of Housing and Urban Development** · Final rule. · Published 2001-07-09 · Effective 2001-08-08 · 66 FR 35846
## Document
- **Document number:** 01-17010
- **Category:** hud-other
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 66 FR 35846
- **CFR reference:** 24 CFR 27
- **Publication date:** 2001-07-09
- **Effective date:** 2001-08-08
- **Docket:** Docket No. FR-4583-F-02
## Abstract

This final rule prohibits a mortgagor or any related party from bidding on or acquiring a multifamily property that was, itself, the subject of the mortgagor's default. The purpose of this rule is to prevent the mortgagor from benefiting from its default and failure to meet obligations under the term of its loan agreement. This rule follows a July 5, 2000 proposed rule and takes into consideration the public comments received on the proposed rule. After careful consideration of all the public comments received on the July 5, 2000 proposed rule, HUD has decided to adopt the proposed rule without change.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2001/07/09/01-17010/prohibited-purchasers-in-foreclosure-sales-of-multifamily-projects-with-hud-held-mortgages-and-sales)
---
*MORVS · CC0 1.0*