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What are HUD Homes?

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asked Aug 18, 2015 in Real Estate by erod429 (53,480 points)
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HUD homes are residential properties insured by the FHA that have been foreclosed on and are owned by the U.S. Department of Housing and Urban Development. They typically include one to four units. When an FHA-insured property goes into foreclosure, the FHA pays off the original lender, and the home becomes the property of HUD, which puts it up for sale in order to recoup the financial loss. [1]

 

It is possible to find deals on HUD homes. Some areas, as designated by the FHA, are considered "revitilization areas." [2] Efforts to increase home ownership in these areas include selling HUD properties at a discount.

 

1. http://www.hudclips.org/articles/hud-homes-basics-and-beyond/

 

2. http://homeguides.sfgate.com/hud-homes-7979.html

answered Aug 18, 2015 by Alexis Arden (43,230 points)
selected Aug 22, 2015 by erod429
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The United States Department of Housing And Urban Development (HUD) looks after the Federal Housing Administration (FHA). The FHA offers federal insurance on home mortgages. When a homeowner with an FHA mortgage cannot honor his or her payment, the FHA forecloses on the home. The Department of Housing And Urban Development (HUD) pays the lender what is owed; and takes ownership of the particular home. Such a house is called a HUD home.

References

http://www.glensold.com/hudquest.html

http://www.realtytrac.com/real-estate-guides/how-to-buy-foreclosures/hud-homes/

answered Sep 15, 2015 by nilupa1973 (35,290 points)

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