HUD auction
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A HUD auction is a form of
foreclosure auction Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan. Formally, a mortg ...
except the original lender was a federal agency instead of a private lender. The
United States Department of Housing and Urban Development The United States Department of Housing and Urban Development (HUD) is one of the executive departments of the U.S. federal government. It administers federal housing and urban development laws. It is headed by the Secretary of Housing and Ur ...
(HUD), is the insurer of loans made through a variety of government programs, particularly
FHA loan An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender. FHA mortgage insurance protects lenders against losses. They have historically allowed lower-income Ame ...
s. When a
lender A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property ...
forecloses on a government insured loan, HUD takes possession of the property. Homes are listed on the Multiple Listing Service by a listing agent who generally receives a 1% commission for listing the property, but is otherwise unaffiliated with HUD.


External links


Department of Housing
{{Real estate Mortgage industry of the United States Real estate in the United States Governmental auctions United States Department of Housing and Urban Development Foreclosure