Definition

A HUD home is a single-family house, condominium or townhouse, or other residential dwelling that has been foreclosed upon and is being resold by a local division of HUD. Former owners of HUD homes were given mortgage loans under the Federal Housing Administration that they were unable to repay, according to Hudhomesnewyork.com.

Eligibility

HUD homes are usually offered first to single-property owners, then to investors and other interested parties, according to the U.S. Department of Housing and Urban Development. Some HUD homes are sold at discounted prices to police officers, firefighters, teachers, nonprofit organizations, Hurricane Katrina evacuees and local governments under the Good Neighbor Next Door Program.

Ownership

When a homeowner defaults on an FHA loan, the FHA pays off the lender of the loan and becomes the owner of the house, according to RealtyTrac, Inc. HUD, the organization that oversees the FHA, is then able to sell the home at fair-market value.

Purchases

HUD homes in different states are listed on Internet sites of companies that HUD contracts with; the pages are found on the HUD Home Portal.

Stipulations

HUD homes are sold without a warranty, and HUD does not make any repairs to houses before it sells them, according to the U.S. Department of Housing and Urban Development,

Source:

U.S. Department of Housing and Urban Development: About Buying HUD Homes

Hudhomesnewyork.com: FAQs About HUD and VA Homes

RealityTrac, Inc.: What Exactly Are HUD Homes?

Resource:

HUD Home Portal: HUD Homes

HUD: Single Family FHA Insured Mortgage Programs

HUD: Neighbor Next Door Sales Programs