A HUD home is a 1-to-4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.
If you have the cash or can qualify for a loan you may be eligible to buy a HUD home.
HUD Home Store is the listing site for HUD owned residential properties. The website is available to the public as well as real estate brokers, and is a great tool for searching HUD homes for sale.