HUD Homes for Sale are homes that were mortgaged with FHA loans that were foreclosed.

When someone with a Federal Housing Administration (FHA) insured mortgage can’t meet the payments, the lender forecloses on the home. FHA pays the lender what is owned and then the United State Department of Housing and Urban Development (HUD) takes ownership of the home.

It then becomes part of the government foreclosed homes inventory of HUD. HUD is the single largest owner of single-family homes in the country.

HUD can at times be very difficult to work with; after all it is a very large governmental agency. That is why it is so important to work with a REALTOR that is experienced in selling HUD Homes.

HUD then assigns the home to its regional Marketing and Management (M&M) Contractor. The M&M contractor prepares the home for sale.

Local Realtors can bid online on behalf of their buyers.  HUD accepts the bid that has the highest net to them.