HUD: US Dept. of Housing and Urban Development
FHA: Federal Housing Administration
If a foreclosed home was purchased with a loan insured by FHA, the lender files a claim for the balanced owed on the mortgage. FHA then pays the claim and transfers ownership to HUD. They then sell the home.
Appraisals are done and the homes are priced at fair market value for the area. Teachers and police officers are given a 50 percent discount on HUD homes. Investors like to purchase HUD homes to fix up and resell at a profit. HUD homes are sold - AS IS.
View homes on the HUD website: www.hud.gov/offuces/hsg/sfh/reo/homes.cfm
HUD homes are sold by bidding. HUD accepts the highest bid offered. There is no negociating between buyer and seller.
All buyers MUST be pre-approved for financing.