{"id":726,"date":"2022-10-26T17:31:25","date_gmt":"2022-10-26T17:31:25","guid":{"rendered":"https:\/\/www.xome.com\/blog\/?p=726"},"modified":"2023-06-13T21:01:22","modified_gmt":"2023-06-13T21:01:22","slug":"what-is-the-cwcot-program-explained","status":"publish","type":"post","link":"https:\/\/cloud-prod.xome.com\/blog\/what-is-the-cwcot-program-explained\/","title":{"rendered":"What is the CWCOT Program? [Explained]"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-cwcot-program\">What is the CWCOT program?<\/h2>\n\n\n\n<p>The Federal Housing Administration\u2019s (FHA) Claims Without Conveyance of Title (CWCOT) program is intended to find better options to reduce the inventory of properties held by the <a href=\"https:\/\/www.hud.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">U.S. Department of Housing and Urban Development (HUD)<\/a>. This program gives buyers a chance to purchase HUD-backed, foreclosure properties through online auctions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-the-cwcot-program-work\">How does the CWCOT program work?<\/h2>\n\n\n\n<p><span class=\"TextRun SCXW112311221 BCX0\"><span class=\"NormalTextRun SCXW112311221 BCX0\">CWCOT properties, also known as second chance foreclosures or second chance CWCOT properties<span class=\"NormalTextRun SCXW112311221 BCX0\">,<\/span> have had a bit of a journey by the time they reach an online auction event. <\/span><\/span><\/p>\n\n\n\n<p>CWCOT properties were originally offered at an in-person foreclosure auction. When they were not sold, HUD then gives them a \u201csecond chance\u201d through their loan servicers by allowing them to be put up for auction online.<\/p>\n\n\n\n<p>If they are not sold during an online auction event, they are conveyed to HUD by the loan servicer to go into the traditional real estate market for purchase.\u202f\u202f&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-benefits-for-investors-and-homeowners\">What are the benefits for investors and homeowners?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">They can be a great value<\/h3>\n\n\n\n<p><span class=\"wysiwyg-font-size-large\"><span class=\"TextRun SCXW105055035 BCX0\"><span class=\"NormalTextRun SCXW105055035 BCX0\">Second chance CWCOT properties can <\/span><\/span><\/span>be a fantastic deal because HUD usually allows for a deep discount on the price. <span class=\"wysiwyg-font-size-large\"><span class=\"TextRun SCXW105055035 BCX0\"><span class=\"NormalTextRun SCXW105055035 BCX0\">Buyers also do not have to pay a buyer\u2019s premium (which is&nbsp;often&nbsp;the greater of 5% of the purchase price or $2,500).<\/span>&nbsp;<\/span><\/span>Most second chance CWCOT properties are also not on the Multiple Listing Service (MLS) alongside traditional listings, so there is less competition.<\/p>\n\n\n\n<p>But keep in mind they are sold for cash only without any contingencies, inspections, or appraisals \u2014 the current condition and occupancy is often unknown, and you can\u2019t even visit them without specific approval from the loan servicer before an auction. Buyers are encouraged to perform due diligence on all properties so they are prepared for the auction process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">They help expand access to housing<\/h3>\n\n\n\n<p>Some second chance CWCOT properties are also part of HUD&#8217;s First Look program for the first 30 days the property is on the market. This program allows mission-driven buyers and eligible owner-occupants&nbsp;exclusive access to submitting offers on these properties during the First Look period. <\/p>\n\n\n\n<p>While in the First Look period, owner-occupants may place pre-auction offers on <a href=\"https:\/\/www.xome.com\/auctions\/Listing\/ListingSearch.aspx?Criteria\/Status=1,6,10,11,13,12&amp;Criteria\/IsFirstLookPeriod=1&amp;Sortorder=32\" target=\"_blank\" rel=\"noreferrer noopener\">Xome.com<\/a>. Government entities and HUD-approved nonprofits may submit offers on and purchase these second chance CWCOT properties by contacting the&nbsp;<a href=\"http:\/\/www.stabilizationtrust.org\/about-ncst\/\" target=\"_blank\" rel=\"noreferrer noopener\">National Community Stabilization Trust (NCST)<\/a>.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#ffded7\">Do you want to see if a second chance CWCOT property is for you? <a href=\"https:\/\/www.xome.com\/auctions\" target=\"_blank\" rel=\"noreferrer noopener\">Visit Xome today<\/a> and browse the available auctions in your area.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Want to know more about the CWCOT program? Learn more about how these properties work.<\/p>\n","protected":false},"author":2,"featured_media":728,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,11],"tags":[54,12,53,13],"class_list":["post-726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investor-tips","category-property-auctions","tag-cwcot","tag-home-auction","tag-hud","tag-property-auction"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.3 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is the CWCOT Program (Second Chance)? [Explained] - Xome<\/title>\n<meta name=\"description\" content=\"Want to know more about the CWCOT program? 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