What is the difference between a bank-owned property and a HUD home?
Banks and HUD own property once in possession of a private individual or entity. HUD is the Department of Housing and Urban Development. Many commercial banks offer home mortgages.HUDHUD homes are houses acquired by the Department of Housing and Urban Development. When a homeowner has been unsuccessful with the mortgage payments on an FHA-insured loan, the home reverts to the mortgage lender. After FHA pays off the lender, the home transfers to HUD.Commercial BanksSome commercial banks offer mortgages to enable people to acquire certain homes. When the homeowner completes the mortgage payments, he owns the home. But if the homeowner fails to pay, the bank has a right to foreclose and take the home.HUD-owned HomesHUD homes sell at market value and in any condition. Potential buyers may offer bids, and HUD accepts the bid that gives the highest net return.Bank-owned HomesA bank becomes the owner of a home when it forecloses and evicts the homeowner for nonpayment. The bank may conduct re
Related Questions
- I need water turned on at a home which is a rental property or a foreclosed/bank-owned property, and whose water is provided by the Town of Leesburg. How do I set up water service?
- What are the primary effects of foreclosures and bank-owned property on neighbors?
- How Do You Buy HUD Foreclosures Cheap?
