In times like these, many people want to understand things like foreclosures and short sales. Here is some information to help people understand more about HUD homes
What is HUD?
HUD stands for Housing and Urban Development. The mission of HUD is to "promote adequate and affordable housing, economic opportunity, and a suitable living environment free from discrimination" (http://www.hud.gov/offices/adm/about/admguide/history.cfm)
What is a HUD home?
Basically, it is a home that is owned by HUD. The real question is, how does HUD end up owning a home? It all starts with FHA. Within HUD, you will find the FHA (Federal Housing Administration). The FHA insures loans. They provide a financial guarantee to a lender. If a lender needs to foreclose on a property, they have the option to deed the property over to HUD in exchange for a claim payment. This is how a property becomes owned by HUD.
How do I buy a HUD home?
You need to work with a HUD broker. You can see listings in local MLS databases and through a local HUD website. In the end, you need to work with a HUD broker to submit your bid.
I hope this is helpful.
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