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What is a HUD home?

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Quick Answer

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.

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Full Answer

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.

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