If you have spent any time looking at real estate, chances are that you have come across something called a HUD home. But, how much do you understand about this federal agency and its programs? Let’s take a deeper look at what is a HUD home and what purposes they serve.
A HUD home is a property that was originally purchased using an FHA loan, and at some point, the owner defaulted on their payments, and the property was foreclosed on and seized by the Federal Housing Authority (FHA). The acronym HUD itself stands for the Department of Housing and Urban Development and was created in 1965 to ensure people of all different income brackets have fair and inclusive access to purchasing a home.
Through a series of different federal policies and programs, the agency provides assistance and helps prospective homeowners have a chance at purchasing a home of their own. A few of the programs HUD offers are: The Good Neighbor Next Door program, $1 Homes Government Sales program, and their Nonprofit program. These different programs aim to encourage individuals (and some nonprofits) to purchase HUD homes.
However, you won’t find any HUD home on any MLS listings. HUD homes are sold at auction and come “as-is,” meaning no changes to the property are made when purchased. All HUD homes can be found on HUDhomestore.com, as well as additional information about the processes and how to obtain one of these properties for yourself.
HUD homes can be a good deal for the right person. If you are thinking about exploring this path for yourself, give Barbara a call at (719)227-9900 and start learning today how to utilize the HUD programs properly.