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Hub foreclosures are foreclosures by the Department of Housing and Urban Development. The process of buying homes that are HUB foreclosures is very different from ordinary foreclosures. The other type of foreclosure is a VA, which stands for Veteran’s affairs. This type of foreclosure is also bought in a different way then regular foreclosure.

The federal housing administration is part of the Department of Housing and Urban Development, and provides federal mortgage insurance. If a home becomes foreclosed, then the lender can file an insurance claim with the federal housing administration for the balance outstanding on the loan. The federal housing administration pays the debt and then transfers ownership to the Department of Housing and Urban Development. Government foreclosures by the Veteran’s Affairs department work in the same way.

Veteran’s Affairs foreclosures are attractive because you don’t have to be a veteran to obtain them with preferred loan rates and no money down. All government foreclosures are at market price, with allowances sometimes being made for the state of property. Repairs and improvements will also be included in the sales price.

The homes are sold as is, meaning what you see is what you get. Neither the Department of Housing and Urban Development nor the Department of Veteran’s Affairs will pay for the cost of repairs, so it is important to thoroughly inspect these homes before purchasing.

The websites that list hud foreclosures are linked to from the HUD website for each state. Search around on these websites, and when you have found a home, you can click on the relevant links to find an approved real estate agent who will show you the property. HUD uses real estate agents as intermediaries and do not deal directly with buyers. The Veteran’s Administration uses Ocwen Loan Servicing to manage and market their properties.

There is a different method when buying a government foreclosure. Instead of making an offer, you make a bid. The home is placed on the market and there is a period of time when bids are accepted. After the bidding period has ended, the offers are opened and usually the highest bidder buys the house.

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The United States offers government foreclosures through the Department of Housing and Urban Development in each state. HUD foreclosures are a lot different than real estate deals made in the public sector. VA foreclosures are another type of government foreclosure. This is handled through the Department of Veteran’s Affairs. The FHA is an arm of HUD and it offers federal mortgage insurance. When a house goes into foreclosure, the lending institution is able to put in a claim with the FHA for the remainder due on the mortgage that was issued. The housing administration settles the debt and turns the title to the property over to HUD.

- David E. Williams