A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. Your real estate agent has access to these listings and will know which homes are HUD-owned. When the offer period ends, HUD representatives look at all bids and determine which bid, if any, provides the department with the best profit. HUD pays real estate brokers an industry-standard commission for facilitating the sale of its homes.
Since HUD deals with such a high volume of mortgages, they are well equipped to handle a high level of foreclosures as well. HUD wants to unload these properties as quickly as possible to avoid the costs of maintenance and the possibility of vandalism. If the market is not in my favor, I can rent it out or refinance-have several exit strategies.
HUD homes usually have between one and four units in …