HUD Homes

Learn about buying a HUD-owned home.

Contact a local Realtor®
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What is a HUD Home?

When a home that is backed by an FHA insured loan ends in foreclosure, HUD acquires the property as the new owner.

HUD then places the home on the market in effort to recoup losses incurred via the foreclosure claim.  HUD is an acronym for Housing and Urban Development.

HUD Homes

Submitting an Offer on a HUD Home

The offer process is different from the traditional purchase agreement.  Only a New Mexico real estate broker registered with HUD can submit a bid on your behalf.

Response times can be in as little as 24 hours.   Since bids are sealed, you could be bidding against other home buyers.

We are a HUD Registered Broker.

What is the difference between a HUD Home & Foreclosed Home?

The primary difference is ownership.  Since FHA has guaranteed the loan on behalf of the federal government on a property, FHA pays off the lender of record.  So, instead of the property going back to the lender as with a foreclosure, it goes back to its “owner”, which in this scenario is HUD.

HUD Home Offer Deadlines

Newly listed HUD Homes have a bid deadline of approximately 8 days from the day they hit the market. If your bid is not received prior to the deadline, your bid won’t be considered. Properties that are still on the market after the bid deadline, are available on a day-to-day basis.  We can submit a bid for you immediately.  Contact us now!

Incentives of Buying a HUD Home

HUD Homes can have some appealing incentives.  Home buyers can request up to 3% towards their closing costs.  The homes have a PCR (Property Condition Report) that can give you an idea of the condition.  Note: The PCR should never replace a full home inspection, but it can inform you of there are any initial required repairs.  It is recommended that you obtain the applicable inspections that apply to the property you plan to purchase.

Closing on a HUD Home

There is a misconception that HUD Homes can take several months to close like a short sale.  Generally, a HUD Home can close in 30 to 45 days from the day of the Seller’s acceptance of the offer.  It’s important to meet the closing deadline because, HUD can charge a daily extension fee of $25.



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