HUD Homes and HUD Foreclosures for Sale Information

HUD Foreclosures: How You Can Benefit From Them

Our NATIONAL FORECLOSURE LISTINGS include thousands of HUD homes. Founded in 1965 as part of the “Great Society” program led by the Johnson administration, the United States Department of Housing and Urban Development (HUD) aims to help increase the availability of quality affordable homes for all, and for all to realize the dream of home-ownership.

HUD and the FHA

One of the key methods by which HUD achieves this goal is through collaboration with the FHA (Federal Housing Administration) to insure mortgages for  a wide variety of homebuyers.

These FHA loans tend to be more forgiving in their requirements than mortgage loans from traditional lending institutions. The less stringent requirements for income proof, credit-worthiness and down-payment inevitably brings with it a number of foreclosed HUD homes as a consequence of a higher amount of loan defaults.

Foreclosed HUD homes go through an auction process in which they are offered to the highest bidder. However, many of these auctioned homes do not get acquired at auction, and subsequently become foreclosed HUD homes.

HUD Foreclosures for sale vs. Bank Foreclosures

In many aspects of the real-estate market, human factors mix with financial ones creating opportunities along the way. In principle, HUD foreclosures for sale are not that different from REO foreclosures. The big difference is the motivation, level of interest, available resources and processes available. It comes down to a matter of engagement and entitlement.

A homeowner dwelling in his or her home is physically present, actively engaged in the care of that home, is motivated to keep the home and feels entitled to its ownership. Banks and lending institutions have a profit motive for offering mortgages. This brings a level of entitlement into REO homes (homes foreclosed by a bank) as well, but the bank is less engaged because of distance, lack of physical presence, and so on.

A bank is therefore a motivated seller, eager to turn a foreclosed home into a positive asset (through a new mortgage to a credit-worthy homebuyer) or into liquid assets (through a sale).

HUD is a motivated seller

In the case of HUD, its motivation is strictly to promote home ownership by empowering and enabling a broad spectrum of the citizenry to buy a home. Additionally, a government agency typically has fewer resources to maintain and manage properties than a for-profit corporation. These factors make HUD an extremely motivated seller that has an urgency to sell. This makes HUD foreclosure listings a good opportunity, as they’re likely to be cheap homes for sale.

A huge inventory of houses available

HUD foreclosure listings offer a wide variety of housing types and a large quantity to choose from. You can search HUD homes from the comfort of your home in our national database.

Our database of HUD homes allows you to find foreclosed HUD homes in your local area or anywhere in the country. The number and selection of cheap homes for sale makes it easy to find a home suitable for your needs in the area of your choice. You can then contact the listing agent, plan a walk-through or arrange for a home inspection, and make an offer. Search HUD homes here.


Contrary to traditional mortgages, an FHA loan for HUD homes may allow minimal down payments, historically as little as 3.5%. HUD also works closely with state, county and community agencies, and often promotes incentives available through those partnerships. Special financing incentives are usually promoted in the details of the HUD foreclosure listings posted in our database.  

Search HUD homes today to find a home that is right for you!

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