| HUD homes are foreclosure homes owned by the | | | | receive written permission for buying HUD homes. |
| government as a result of repossession. The US | | | | HUD homes for sale are bought through |
| Department of Housing and Urban Development (HUD) | | | | HUD-approved real estate agents. The real estate |
| insures certain home mortgages through the FHA. | | | | agent will assist you with bidding. The highest bid wins, |
| When an FHA-insured home's mortgage is not paid, | | | | and if no bids are acceptable, the property is bid on |
| the property is foreclosed by the lender. HUD pays the | | | | again. Settlement after a successful bid usually takes |
| lender for their lost money and takes ownership of the | | | | one to two months. If you cannot arrange financing for |
| property. The foreclosed properties are then quickly | | | | the HUD properties within this time, you need to pay to |
| resold. Investors often look for HUD homes for sale | | | | extend the deadline or you lose your deposit. |
| because they provide an excellent investment. Police | | | | You need to inspect the HUD homes listing you are |
| officers and teachers get a further 50% off the cost | | | | considering carefully as they are sold 'as is'. When |
| of the listed HUD homes. | | | | buying HUD homes, you may want to make it a |
| If you have the money or are pre-approved for a | | | | condition of your bid that the agent's commission is |
| mortgage, you can buy HUD homes. Since these | | | | wavered. |
| properties are so inexpensive, almost anyone with an | | | | HUD will not help you by providing you with a home |
| income can buy them. Usually, buyers who will be using | | | | loan. However, those buying HUD foreclosures do |
| the home as a primary residence have first selection. | | | | qualify for FHA loans, and even some private lenders |
| These properties eventually become available to all | | | | will be willing to give you a loan for HUD houses. Since |
| interested buyers if no owner occupants are | | | | closing comes so quickly, you may wish to arrange |
| interested. If you or a relative work for HUD, you must | | | | financing before shopping for HUD homes for sale. |