When a home owner defaults on the payment of their FHA loan, the financial institution that holds the loan (banks) eventually take that property back. The Federal government (FHA) insured the bank against the buyer’s default. The bank then turns the property over to FHA/HUD for reimbursement of their losses. FHA/HUD acquires the home from the bank. Then HUD cleans up the property, looks for safety and soundness issues and markets the home for sale in it’s as-is condition with disclosures about the known conditions. Anyone who can get a loan, or pay cash, can buy a HUD Home. There are priority periods for owner occupants, at first, so check with your HUD registered real estate agent for more information. HUD homes can be purchased at excellent values. They are located in most neighborhoods, and many are in move in condition. Investors may purchase HUD Homes after the owner occupant period has expired. You have a 15 day inspection period to inspect the home and discover any previously undisclosed, non-cosmetic items. The inspection is to satisfy yourself about the condition of the property. HUD will NOT do any repairs! You are buying the home AS-IS, and hopefully at an excellent value. Your agent can discuss your options with you after your inspection is completed. Buyers DO need to work with a HUD registered real estate agent to bid on a HUD Home. Feel free to contact us. We have helped thousands of home buyers purchase HUD Homes for more than 20 years. We also train other agents on the process of selling HUD Homes. You can start your home search and fact finding below. . . or call us and we will walk you through it.