What is a HUD home? Am I eligible to buy one?
A HUD (US Dept. of Housing and Urban Development) home is a single family or any other type of residence which has been deeded back to HUD/FHA by mortgage companies who had foreclosed on FHA-insured mortgages in return for mortgage benefits. Whenever a lender forecloses on a home insured with a HUD mortgage, HUD first pays the lender the amount owed on the home and then attempts to sell it at auction as soon as possible for no more than market value. The lender gets off the hook and, since the homes are sold at auction, buyers sometimes get them at below appraised market values. HUD homes are sold on an as-is, non-warranty basis by auction during an “Offer Period”. The initial offer period is open to ‘owner occupant’ bidders only -meaning you must live in the property for which you are making an offer. If the home isn’t sold in the initial Offer Period, HUD makes the property available to all bidders – such as investors, and you may submit a bid any business day. If your bid is accepte
