This is a private website and is not endorsed by or affiliated with any local, state or federal government agency or authority. The U.S. Department of Housing and Urban Development (HUD) is the agency that oversees federal housing agencies and programs including the Federal Housing Administration (FHA) which insures home loans. If you want to make an offer on a HUD home, you must bid through a HUD-registered broker.
HUD also may take away the ability for the real estate agent representing the buyer and their office to sell HUD homes. If a homeowner fails to make payments on a FHA loan, the mortgagee forecloses and files an insurance claim with HUD. Homes that are still on the market after the 15 day bidding period are then offered to investors.
One of the great parts about buying real estate from HUD is that HUD is also a mortgage lender, so many buyers choose to make the process easier by buying a home and securing financing from the same source. Buyers may notify HUD if and when they want to move out before the three years are up, but they must repay the agency for the discounted amount on a prorated basis based on how long they lived there.
We receive many questions about HUD homes because we are a HUD Local Listing Broker. HUD does allow and encourage inspections of their listings and for properties where repairs are obvious they offer a repair credit based on their estimates of the work to be done.
In exchange for paying off the unpaid loan balance to the mortgagee, HUD receives title to the property. BLB Resources and HUD make no representation or warranties, expressed or implied, concerning the condition of the property, and will not make repairs to the property.