HUD defines a HUD home as “A HUD home is a 1-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage.” Since HUD is then the property owner, they offer it for sale and attempt to recover any loss on the foreclosure claim. HUD is not interested in owning properties.
A HUD home does NOT mean it is low priced, in a low income area or has government subsidized tenants. It simply means that the loan on the property was an FHA loan and the property was taken back through foreclosure. There are “HUD HOMES” in neighborhoods with $20,000 homes and $200,000 homes and higher!
If you are looking to purchase a HUD home you will need to work through a Realtor that is HUD approved. HUD does not sell directly to consumers. They always use a sales agent so call CENTURY 21 and let us get started hunting for the right home for you!