To understand a HUD listing there are a few factors involved that can make the process easier.
The proceedings do not have to be confusing.
HUD stands for US Department of Housing and Urban Development which is also comprised of the FHA ( Federal Housing Administration).
The function of the FHA is in dispensing federal mortgage insurance to lending institutions.
When a property has been foreclosed on and it was purchased with an FHA guaranteed loan, the property is then turned over to HUD and that property then becomes a HUD listing.
Any HUD listing can not be sold by a real estate agent that has not been approved by HUD.
As a general rule, many agencies and agents are already HUD approved so locating an agent to assist in a HUD listing purchase is easy.
Purchasing a HUD listing is different from a private purchase or a foreclosed property that is not owned by HUD.
The approved agent does all the work and HUD is not involved in the process.
Once an approved agent is located, simply ask the agent for listings in the area of interest and the process of finding that home has begun.
The manner in which a HUD property is sold is through the auction bidding procedure.
As soon as the desired property is located a sealed bid is then submitted through the agent amid the bidding time frame.
The only deviation from this process is when the bidding endures after the basic bidding process is over.
In that case the bids are then opened in the order they were received.
It is common for HUD to sell to the highest bidder.
It is recommended that a buyer have the property inspected before submitting a bid as HUD does not do any inspections, repairs or improvements before the sale of the property.