If you’re interested in purchasing a HUD home, you should understand what this process looks like and how it differs from buying a traditional home. HUD homes are not listed on the Multiple Listing Service, so you won’t find them among your average home listings. HUD homes are instead listed on HUD’s website, HudHomeStore.com.
Unlike regular homes sold on the market, HUD homes are sold at auction. In order to view and bid on these homes, you must hire a real estate agent who has been approved by HUD. There is a 30-day period of time during which bids from owner-occupant buyers are accepted. Once the period ends, HUD reviews all of the bids and chooses the highest offer. If none of the offers are deemed high enough, the bidding process is extended and opened up to investors.