What is a HUD Home
January 23, 2023
What exactly is a HUD owned home and how can I purchase one? A HUD home is a house that has been foreclosed on that had buyers that originally used FHA insured financing to purchase the property. The homeowner could not make the payments for whatever reasons and the lender was forced to foreclose on the house. HUD then reimburses the lender for what is owed to the lender and HUD takes ownership of the property. Once HUD assumes ownership, HUD begins the marketing process. This includes preparing the property for sale by changing the locks, cleaning the property inside and out and having an FHA certified appraiser provide a value for the property. HUD lists all properties for sale at the appraised value. Before offering most property for sale to the public, HUD may offer it to special groups under special programs such as the Good Neighbor Next Door program and registered not-for-profits. When marketed to the public, all properties and listed with a local HUD approved Real Estate Broker. Information about all properties actively on the market can be found at www.HUDHOMESTORE.COM.