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Recently, the auction market has seen a surge of interest in properties where HUG (Housing & Urban Guarantee Corporation) waives the tenant’s priority rights.

On the surface, these listings look extremely attractive. Normally, the successful bidder must take over the tenant’s large deposit, but when HUG waives the priority, that financial burden disappears entirely.

But here’s the hidden trap: “HUG can waive priority, but the court does not have to accept it.” If the court does not approve the waiver, the winning bidder may still be responsible for the remaining deposit — a costly mistake many people overlook.

In this guide, you’ll learn the 4 essential steps to safely verify these cases and identify which HUG-waiver listings are genuinely safe to bid on.

HUG waives priority rights for one main reason: to prevent worst-case financial losses and ensure partial recovery.

1) Preventing failed auctions

When the tenant’s deposit exceeds the property value, potential bidders avoid the case due to excessive takeover liability. This leads to repeated failures and declining auction prices.

2) Avoiding full loss of the deposit

If the auction keeps failing, HUG may recover little to nothing. Waiving priority encourages participation and improves recovery chances.

3) Keeping the auction process moving

A waiver reduces the bidder’s burden, increases competition, and restores normal auction flow — ultimately benefiting HUG’s recovery.

Many bidders mistakenly assume that if HUG submits a priority-right waiver letter, the court automatically accepts it. This is incorrect — and extremely dangerous.

"HUG’s submission is merely an expression of intent; the court’s approval is a completely separate decision."

The court may accept or reject HUG’s request depending on procedural fairness and legal considerations.

If you bid without checking for actual court approval, you may end up assuming the property is safe — only to discover later that you must take over the tenant’s deposit.

This is why verifying court approval, not merely submission, is the most critical step when analyzing HUG-waiver auction listings.

Not every HUG-waiver auction case is safe. By following the four steps below, you can eliminate most risky listings.

① Check for Changes in Auction Schedule

When the court approves HUG’s request, the auction timeline is often adjusted. This may include changes in the auction date or even restarting from the initial appraisal value.

Therefore, any change in the auction schedule is a positive sign indicating possible approval from the court.

② Verify Submission of the Waiver Letter

In the court’s document log, confirm that HUG has actually submitted the priority-right waiver letter.

※ Note: This step only confirms “submission.” The critical issue is whether the court has “approved” it.

③ The Most Critical Step: Check the Remarks Section in the Official Property Sheet

The court’s final decision is recorded in the Remarks section of the Auction Property Information Sheet. This is where you determine whether the property is safe to bid on.

④ Cross-Check with HUG’s Official Auction List

As a final verification step, check the property’s case number and address on the official HUG auction list.

This ensures the case is truly related to a HUG compensation event and adds an extra layer of verification for safer bidding.

HUG-waiver auction properties can provide excellent opportunities by reducing acquisition burdens and lowering the final bid price. But if the structure is misunderstood, bidders may still end up taking over the tenant’s remaining deposit — a costly mistake.

In auction investing, the most valuable skill is the ability to identify hidden risks accurately. By consistently applying the four-step checklist (auction schedule change → waiver submission → remarks review → HUG cross-check), your safety level increases dramatically.

Rather than relying on appealing phrases like “HUG waiver,” always base your decision on the court’s final documented approval. With these habits, you’ll avoid unnecessary risks and uncover far more stable opportunities in the auction market.

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