HUD Homes: Who, What, Where, When and How
Remember your school days when you learned about descriptive writing and news reporting? The key pieces to an engaging story were the four-W's and the H: Who, What, Where, When and How. Let's review these as they relate to HUD homes and government foreclosed houses for sale.
Who is HUD?
HUD is an acronym for the US Department of Housing and Urban Development. This group is chartered with helping encourage affordable housing and home ownership among the citizenry of the United States of America. HUD makes housing structures (apartments and homes) and financial programs available to assist with housing needs nationwide. HUD homes are just one piece of HUD's portfolio of programs.
What are HUD Homes?
HUD Homes can be any variety of home that is defined as a residential property, comprised of 1 to 4 units, which has been acquired by HUD through a foreclosure action against a defaulted mortgage insured by the FHA (Federal Housing Authority). HUD homes are made available for resale, after foreclosure, to help the government recover their financial loss on the defaulted loan.
HUD is not in the business of selling regular new or existing homes, in the traditional sense. HUD Homes is not a real estate brokerage or sales outlet. Only homes which have been repossessed as the result of an FHA loan default are sold through HUD. In addition, HUD does not directly sell their homes, but rather, uses a network of qualified real estate brokers and professionals to manage the marketing, sales and transactional steps involved in buying HUD homes.
Where are HUD Homes found?
HUD homes can be found nationwide. Of course, in those states and cities where there is a higher rate of HUD foreclosure activity, there will be more inventory of HUD homes available for sale. Some states have considerably higher inventory of these homes for sale than others, homes are brought to market at any time. Buyers are wise to check not only their city, but other nearby areas to be sure they see the latest HUD homes listings.
When are HUD Foreclosure homes available?
Right now. New homes are added to the HUD inventory on a regular basis. Although HUD inventory can be found in most states nationwide, it is not as numerous as other types of REO property, such as bank foreclosures and Fannie Mae foreclosure homes. On the other hand, HUD homes are typically one of the lower priced classifications of real estate foreclosures. In some locations, HUD homes can be purchased for as little as $1 by local governments. These $1 homes are made available from HUD listings that have not sold after a minimum of 6 months on the market. Local governments can apply to purchase select homes for $1 and then utilize them or re-sell at as low a price as they see fit, predominantly to lower income buyers or buyers interested in neighborhood revitalization programs.
How can you find HUD homes?
Search HUDForeclosed.com for the freshest HUD homes listings now.