A HUD home is a single or multifamily residential unit that is acquired by the Housing and Urban Development department as a result of a foreclosure on a FHA-insured property. Federal Housing Administration insurance protects lenders against financial loss in the case of owner default.
Following foreclosure, HUD offers homes for sale to recover its losses. The properties are offered to real estate professionals, the general public, mortgage industry members, non-profit agencies and other government entities, such as local agencies who wish to start a revitalization program in a specific neighborhood. The HUD Home Store offers a central location where buyers and sellers find details regarding HUD properties for sale.