The Definition of a HUD Home

What is the definition of a HUD home? A HUD home is a home that was backed by the Federal Housing Administration (FHA). A HUD home is a home now in foreclosure. The lending mortgage company has deeded the house back to the Federal Department of Housing and Urban Development (HUD). HUD will be involved in trying to sell the home to recover any money lost.

Anyone can buy a HUD home. As long as the interested person has enough money or can qualify for a loan, he can buy a home. The only catch is that preference is given to those who are buying the homes for their primary place of residence. The homes are offered for sale first to those who want to buy the homes to live in them. If they are not sold, they are offered for sale to all potential buyers, including developers.

Those who have been displaced by Hurricane Katrina, Hurricane Rita, or Hurricane Wilma, may buy HUD homes at a discount.

If you have ever wondered what is the definition of a HUD home, they are listed online. Those trying to sell the homes are under contract to HUD. If you want to buy a HUD home a licensed real estate broker who is registered with HUD may give an offer for you. Even the real estate broker's commission will be paid by HUD.

All homes are offered for sale at fair market value. This is determined by a recent appraisal. At the end of the offer period, all bids are opened. The highest acceptable one is accepted. If there has not been a sale, the home will be offered for sale on an "extended" basis. This means means bids may be placed at any time on a business day. If one of those bids is accepted, the buyer will be notified within 48 hours.

While the homes are offered at fair market value, there are special discount programs through HUD for low income and other people who are in certain categories.

Continue learning more about HUD homes as the article What is the Definition of a HUD Home continues on page two.