What is a HUD Home?

[Jacob Cogswell]

What is a HUD home? This is a home that has been foreclosed on with a Government backed loan. Usually this is a FHA loan, but it could be a VA loan as well. When it is foreclosed on it is taken over by the Department of Housing and Urban Development. They generally show up on the market with a lower price, and it is a blind bidding process. You have to submit an offer with through a HUD approved brokerage. Once all of the bids have been submitted then HUD will decide whom the winning bid goes too. HUD homes are sold as in with no warranties, and you are required to do all of the due diligence yourself. The first 30 days on the market the bids will only go to people looking to owner occupy the home, and after that they are opened up to everyone, and can be a great opportunity to purchase a home at a discounted price.