HUD Articles

HUD foreclosed properties are the result of FHA mortgages that have failed.  FHA guaranteed loans is lending program that insures lenders (insurance program) that if they provide funding a loan under FHA guidelines and the buyer’s default, HUD will pay the lender most expenses and debt on the property that failed.  The lender is under the obligation to foreclosure and then file a claim with HUD.  If and when HUD pays a lender on a bad loan, the lender deeds the property to HUD. HUD then has the responsibility to market or sell the property for the maximum the market will bring.  The management and marketing process involves making the property safe and clean, valuing the property ~ HUD lists all their properties at the appraised value ~ and then selling the property. When HUD sells a property, the proceeds are deposited into the FHA insurance fund to assist in providing new FHA loans.