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Chapter 1: An Overview of HUD Homes

HUD Homes – What are They?

Properties lost by previous owners through foreclosure and those that have been returned to lenders through a deed in lieu of foreclosure are HUD homes. The United States Department of Housing and Urban Development owns these specific foreclosures and together they comprise one of the country’s largest foreclosure property inventories. In some cases, job loss, medical problems and other financial problems keep property owners from staying current on mortgage payments and when these homeowners default on their FHA mortgages, the lost properties become HUD homes or government foreclosures.

A Bit of HUD History

HUD stands for “Housing and Urban Development” and it originated from the House and Home Financing Agency. It was first established back in 1965 by the United States Government to help develop and execute policies towards cities and the homes they included. Currently, HUD focuses primarily on housing and currently has little function when it comes to urban development.

President Lyndon Johnson officially set up HUD by signing the Department of Housing and Urban Development Act in 1965, although the function of the agency did not begin until 1966. The original mission of HUD was to help support community development, reduce housing fee discrimination and increase homeownership throughout the country. Today HUD officials continue to follow those original missions by working to develop new partnerships with local community organizations and embracing high standards and accountability.

Currently, HUD works in many ways to fulfill their mission and HUD foreclosure homes are only one part of this government organization. HUD today offers many services that include improving the health of cities, assisting low-income renters, assisting the homeless and increasing homeownership throughout the country.

HUD homes are homes repossessed by the Housing and Urban Development Agency.

Next: The mission of HUD