HUD Foreclosure Homes

HUD, an acronym for Housing and Urban Development, is a government agency developed in 1965. Since the 70’s it has left urban development to largely to other government agencies and focused more on housing. HUD foreclosure homes are acquired when a homeowner defaults on an FHA insured loan. The government allows HUD foreclosure houses to be listed for the general public. The government initiated the HUD agency to help lower to middle income families the opportunity to own their own homes. However, virtually anyone can qualify. HUD usually prefers to sell these homes to potential owner occupants until it deems it has been on the market a reasonable amount of time when investors are allowed to purchase them.

HUD offers financial counseling in every state to those interested in buying HUD foreclosure homes. While HUD itself is not actually a lender, it does, through these counseling programs, help guide prospective buyers through the process. If you have cash or can qualify for HUD foreclosure houses then you can buy.

HUD foreclosure homes are offered on various internet listing sites. Your agent, if listed with them, can make an offer on a home you choose and HUD will pay his or her commission if it’s listed in the contract. You will find these listings in virtually every county in the U.S.

HUD foreclosure houses, while made available to the general public, are offered at even greater discounts to certain sectors. Law enforcement officers, for instance, can acquire a HUD home at up to a 50% discount through the Good Neighbor Initiatives program. Others who qualify for this program include firefighters, teachers and EMT’s.