When a mortgage lender forecloses on a mortgage insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD), the lender may convey the property to HUD in exchange for the mortgage insurance benefits. HUD sells the homes to the public, nonprofit groups, and governmental entities at fair market value or at a discounted price under special programs. The acquired properties are single-family homes (1-4 units), including town-homes, condominiums, or other types of single-family dwellings.
How HUD Homes are sold
HUD uses the competitive electronic bid process as its primary method of disposing of acquired properties. Bids must be submitted online at t he HUD Home Sale website at www.hud.gov/homes. Typically, at the end of the offer period (usually 10 days), all the bids received on the home are opened. HUD accepts the bid giving the highest acceptable net return.The winning bid is then posted on the HUD Home Sale website. Buyers must use a licensed real estate broker to prepare and submit bids. From time to time, HUD may use the auction method to dispose of properties in hard to sell areas and where there is a large inventory of properties that have been on-hand longer than six months. HUD also offers properties on a direct sale basis to nonprofit organizations and governmental entities under special sales programs.
How sales are advertised
HUD provides information on available properties via widely circulated daily newspapers and the Internet at www.hud.gov/homes.
Special restrictions/conditions
HUD does not offer direct financing on its properties. However, FHA-insured financing is available through approved FHA lenders on many of HUD's properties. Generally, HUD employees, their relatives, and HUD contractors are prohibited from buying HUD properties.
Randy Bailiff
Dean Graziosi Real Estate Investment and Life Coach
When a mortgage lender forecloses on a mortgage insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD), the lender may convey the property to HUD in exchange for the mortgage insurance benefits. HUD sells the homes to the public, nonprofit groups, and governmental entities at fair market value or at a discounted price under special programs. The acquired properties are single-family homes (1-4 units), including town-homes, condominiums, or other types of single-family dwellings.
How HUD Homes are sold
HUD uses the competitive electronic bid process as its primary method of disposing of acquired properties. Bids must be submitted online at t he HUD Home Sale website at www.hud.gov/homes. Typically, at the end of the offer period (usually 10 days), all the bids received on the home are opened. HUD accepts the bid giving the highest acceptable net return.The winning bid is then posted on the HUD Home Sale website. Buyers must use a licensed real estate broker to prepare and submit bids. From time to time, HUD may use the auction method to dispose of properties in hard to sell areas and where there is a large inventory of properties that have been on-hand longer than six months. HUD also offers properties on a direct sale basis to nonprofit organizations and governmental entities under special sales programs.
How sales are advertised
HUD provides information on available properties via widely circulated daily newspapers and the Internet at www.hud.gov/homes.
Special restrictions/conditions
HUD does not offer direct financing on its properties. However, FHA-insured financing is available through approved FHA lenders on many of HUD's properties. Generally, HUD employees, their relatives, and HUD contractors are prohibited from buying HUD properties.
Randy Bailiff
Dean Graziosi Real Estate Investment and Life Coach