Buying a Foreclosed HUD Home

Acquired by US Department of Housing and Urban Development (also known as HUD) as a result of a foreclosure, HUD homes are both single family homes and multifamily residential properties. In order to recover the loss on the foreclosure, HUD becomes the property owner, and the puts up the foreclosed home for sale. HUD homes are appraised, and then priced at fair market value based on the neighborhood. A HUD home in need of repairs is adjusted downwards to reflect the investment the new owner will need to invest in order to improve the home.

Almost anyone can qualify for mortgages for foreclosed HUD homes. HUD homes are sold through a bidding process that puts investors in line after intended owner-occupants. Hence buying HUD foreclosure is quite different than purchasing a traditional home. Some foreclosed houses owned by HUD are available at a reduced sales price to public employees such as: police officers, teachers, firefighters, and emergency medical technicians.

Since HUD homes in foreclosure have already gone through the entire foreclosure process, almost anyone can qualify to purchase one. As long as they either have the cash in hand or can qualify for a loan, the HUD home should be available to anyone who can finance the purchase. Available HUD homes are listed on various websites. If you find a HUD home on that you want to buy, find a real estate broker who can submit an onlne bid for you. If HUD finds your bid acceptable, your real estate agent will be notified, usually within 72 hours.