What is a HUD Foreclosure?

Buying a HUD foreclosure could be one of the best financial decisions that you make in the area of real estate. A HUD foreclosure is a house that was foreclosed upon as part of the FHA loan programs. Every year the FHA in association with HUD insures many mortgage loans for the general public. When these mortgages go into default, HUD actually can take over the house. Here are a few things that you will want to know about HUD foreclosures before you get involved. 

Substantial Savings

Since HUD has actually foreclosed on these houses that were guaranteed by FHA loans, they will usually represent some significant bargains. HUD does not want to hold onto the properties any longer than they have to. Therefore, they will usually unload them for a nice savings for the buyer. If you are looking to buy a home, checking out HUD homes first could be your best bet to save some money.

The Process

The process of buying a HUD foreclosure is quite a bit different than buying a normal house. There will typically be a waiting period after the house becomes available to give several different buyers the chance to bid on it. You may benefit from the help of an experienced real estate agent when dealing with this process as well. 

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