- HUD, the Department of Housing and Urban Development, is a department of the government responsible for a number of federal housing agencies and programs. One of these is the FHA.
- When an FHA-insured loan goes into default, the home then falls under the jurisdiction of HUD, which has the responsibility of disposing of it.
- The originating lender is paid off by FHA, and the home goes back to the government as its owner, rather than going through normal foreclosure procedures. It is then administered by HUD for sale.
Process Of Sale
- Just as financial institutions do, HUD has real estate professionals represent its interest in selling these homes. Buyers have several options when it comes to purchasing a HUD property.