Upcoming Foreclosures

What's a HUD case mean for a house listing?

I found a house listed for sale online and it says it's a HUD case, does that mean it's really crappy inside? Or does that mean it's owned by HUD as opposed to a bank like a foreclosure? How does a house become a HUD house?

Public Comments

1. HUD is not a lender. The organization usually hears charges of discrimination in housing rental and purchase. HUD does offer help in preventing foreclosures; I don't know the details of that plan but perhaps this is a house that wasn't able to prevent foreclosure? Go look at the property. I wouldn't imagine that it would be in the best shape if that's the case, but you would need to look for yourself.
2. HUD offers an insurance program which covers any losses by a bank when that bank issues a HUD loan. HUD does not loan anyone any money. They are an "insurance" policy. The buyer of the home paid the fee for that policy when she bought the house. Your house is owned by HUD. HUD paid off the bank and took title. Now they are selling it. It will be sold "as-is". You can look inside the house since it is up for sale. You make your offer assuming that everything does not work. Most of their houses have a minimum bid .... often in the listing.