What Is A HUD Home? A Bargain With One Huge Catch
When payments are not paid on a mortgage insured by the Federal Housing Administration (FHA), the lender (mortgagee) forecloses, or accepts a deed-in-lieu. Likewise, there are always a variety of good deals on foreclosed properties and unlike the regular real estate market foreclosed homes are in abundance and priced to sell. Nonprofit – Eligible nonprofit organizations can bid on homes in lottery, exclusive, and extended phases provided they are in approved purchase areas.
A HUD home is a 1-to-4 unit residential property acquired by HUD (Department of Housing and Urban Development) as a result of a foreclosure action on an FHA-insured mortgage. In addition, we link to listings of homes being sold by other federal agencies You can even get directions to the properties that interest you, see their locations on a map, and find out what schools are in the area.
If you have trouble contacting your local public housing agency, contact your local HUD field office for help. The old FHA programs and the newer HUD programs act as an insurance agency for banks, savings and loans and mortgage bankers who make real estate loans to buyers and investors.
Many times when buyers think of HUD homes, they get an image of an old beat up run down fixer upper. HUD = Housing and Urban Development; HOME = Single Family Residents and Muti-Family Units (under 4 units) that are sold to the owner occupants and investors through a sealed bidding process.
In order to be fair to all purchasers, HUD has imposed timetables that must be met or your bid or contract will be cancelled and the home returned to the market. A HUD Home can be a Single Family Residence (SFR), Townhome, Condominium or any other type of residence up to 4 units.