A HUD owned home is a 1-4 unit residential property that was bought with an FHA loan that went into default. The lender who holds the loan then files a claim against the FHA fund. HUD pays the lender and is deeded the property in return. This is now a HUD owned home. When this home is sold, the proceeds go to replenish the FHA fund.
HUD homes come in all shapes, sizes and conditions but one thing that they all have in common is that they are sold “AS IS” without any guarantees, warranties, or representation.
HUD homes are priced at a value around the appraised value.
Definition of a HUD Owned Home
Where to Find HUD Owned Homes
Understanding Insurability Codes & Listing Periods
Making Offers on HUD Homes
Winning the Bid
Walk-through & Closing