What is a Hud Property?

HUD, also known as the U.S. Department of Housing and Urban Development, is a federal agency that insures homeowners through its Federal Housing Administration (FHA). Property is acquired by HUD from lenders that foreclose on the owners who are insured by the FHA. When HUD receives the property, they offer it for sale to the public. HUD only receives the property after the mortgage lender completes the foreclosure process on the real estate. The lender is the only one who has the legal responsibility to foreclose on property.

Those that are interested in a HUD property place a bid to a real estate broker. The agent will then submit your bid in HUD's web-based site. When the bid process for the property expires, then the computer system automatically calculates who the highest bid is. When the winning bidder is chosen, HUD will notify the real estate broker and he/she will contact the investor or homebuyer. The winning bidder has 48 hours to submit a sales contract that reflects the offer and the bid information. Finally, the property will settle within 30-60 days after HUD processes the contract.