While browsing Hubzu’s foreclosure inventory, you might notice something new: lower reserve prices on many CWCOT properties. This change isn’t random—it comes straight from the Federal Housing Administration (FHA). Let’s break down what happened and why it matters for you as a bidder.
What Is a CWCOT Property?
“CWCOT” stands for Claims Without Conveyance of Title. It’s a program the FHA uses to sell foreclosed homes faster, without first taking them into HUD’s inventory. Instead, the property is sold directly at a foreclosure auction—or if it doesn’t sell there, at a “second chance” post-foreclosure auction.
On Hubzu, you’ll see these CWCOT properties listed regularly.
What’s New: Lower Reserve Prices
FHA sets something called the Commissioner’s Adjusted Fair Market Value (CAFMV). Think of this as FHA’s way of saying, “Here’s the minimum bid we’ll accept on this property.” That number is based on the home’s estimated market value minus adjustments (or “haircuts”) for things like repair costs, time on market, and local risks.
Until now, those adjustments were based on broad state-level averages. But as of September 15, 2025, FHA is using more precise, local data (based on Metropolitan Statistical Areas). That means the reserve prices on many properties have dropped—sometimes significantly—to better reflect what buyers in each market are willing to pay.
Why This Matters to You
- Lower entry points: With reduced reserves, more bidders can get in the game.
- Better investment potential: Lower starting bids and lower reserves can translate into better margins if you plan to renovate, rent, or resell.
What You Should Do Next
This update means competition for these properties may heat up. If you’ve been sitting on the sidelines, now’s the time to:
- Check Hubzu’s CWCOT properties to see which homes have updated reserve prices.
- Register to bid so you’re ready when auctions open.
- Act quickly—with lower reserves, properties may sell faster than before.
Bottom Line
Did the FHA Just Make It Easier to Bid on CWCOT Properties? Yes, they did. FHA’s new CAFMV update is good news for Hubzu bidders. It means lower reserve prices and better chances to score your next home or investment property at a price that works for you.
Start exploring today and see how these changes open up new opportunities on Hubzu.
