I have been looking for house for sale on the internet and have come across foreclosure and HUD homes. What is the difference?
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HUD (federal agency called Housing and Urban Development) homes are homes where the mortgage is guaranteed by HUD. So, when the bank forecloses, HUD pays the mortgage off, seizes the property, and then sells the home to recoup their losses. A foreclosure sale is when the lender forecloses on an owner, seizes the property, and then sells it to recoup their losses.