How Do Bank REO Properties Become HUD REO Properties?
The Department of Veteran Affairs and the United States Department of Agriculture also have a similar process. The US Department of Housing and Urban Development’s (HUD) Real Estate Owned (REO) properties are a result of the Federal Housing Administration (FHA) paying a claim to a lending institution on a foreclosed property which was financed with FHA Insured Mortgage and the lender transferring ownership of the property to HUD. Typically, title to the property is not transferred (or the claim paid) until the previous owner is evicted from the property. Normal, after the home is transferred to HUD the property will go up for auction the their website (shown above). Almost any REO Property you look at will have room for improvement. But the more that needs to be done to a home, the less youre going to have to pay for it. HUD Homes, because theyre sold in as-is condition, can often be a great, affordable opportunity for the fixer-upper. Many are in fine neighborhoods and offer outstandi
