What are hud homes?
The Department of Housing and Urban Development is a federal agency that ensures home loans to homeowners through its Federal Housing Administration (FHA). When a property owner defaults on a HUD insured loan, HUD purchases the home through the lender and sells it to the public. A HUD home may be a single-family house, a town home, condominium, or other type of residence. The properties were deeded to HUD/FHA by mortgage companies who had foreclosed on FHA-insured mortgage loans. Now HUD must sell these homes – as quickly as possible at market value – in order to obtain the maximum financial return on its mortgage insurance funds.
