| <br /><br />HUD homes are foreclosed or | | | | home sale prices – which are already low. |
| repossessed properties being sold by the U.S. | | | | Teachers, law enforcement officers, firefighters, and |
| Department of Housing and Urban Development | | | | emergency medical technicians all qualify for this |
| (HUD). These homes are sold by the government | | | | special program. To qualify, buyers must have one of |
| because the last homeowner to live in these homes | | | | the jobs and must buy an HUD home in a community |
| had a government-insured loan. When the homeowner | | | | which is being revitalized. The buyer must also commit |
| failed to pay the loan, the government paid the lender | | | | to living in the HUD property for at least 36 months. |
| for the cost of the defaulted loan and in turn when the | | | | HUD's Good Neighbor Next Door Sales Program |
| property became repossessed, ownership was | | | | allows qualified buyers to purchase a home for less |
| transferred to the government. The HUD tries to sell | | | | than half of its actual value. In some cases, these HUD |
| HUD homes in order to recoup the money they have | | | | properties are sold for a tiny fraction of their actual |
| had to pay lenders for defaulted loans. HUD | | | | value.<br /><br />HUD homes are also |
| foreclosures, because they are repossessed | | | | sometimes sold as Dollar Homes. Some HUD |
| properties and because the HUD wants to sell them | | | | properties which have been on the market for six |
| quickly, are often priced below market value.<br | | | | months or more are designated as Dollar Homes and |
| ><br />Even though HUD houses are priced to | | | | are sold to governments or qualified nonprofit agencies |
| sell, the HUD offers special programs which qualify | | | | for one dollar. If you operate a nonprofit group and |
| some buyers for even greater discounts on properties. | | | | wish to help people in your community, these HUD |
| For example, the HUD Good Neighbor Next Door | | | | homes can help. |
| Sales Program offers an extra 50% discount on HUD | | | | |