About Buying HUD Homes

A U.S. Department of Housing and Urban Development (HUD) home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on a Federal Housing Administration (FHA)-insured mortgage. Regardless of whether the property is being financed with an FHA insured mortgage, HUD does not guarantee or warrant that the property is free of visible or hidden defects, termite damage, lead based paint, or any other condition that may render the property uninhabitable or otherwise un-useable. If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home.

HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. In the early ’90s, we bought a HUD and at that time, the bid with the highest NET to HUD was THE winner. In fact, in the case of …