[FreedomCalls]

Setting aside issues of fraud, there is nothing wrong whatsoever with selling a house given under such circumstances.

It's not a question of what is legal, but what is moral.

[Sloth]

I know, I'm talking about the moral aspect. If these two misrepresented themselves, that's wrong & probably actionable... but in general, there would be nothing morally wrong with Katrina victims selling a house they were given.