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What Is a HUD Home? Are the Savings Worth the Risks?

HomeLight

Due to the nature of how a home becomes a “HUD home,” purchasing one differs from the traditional homebuying process, and there are a few qualifications, special incentives, and risks that any savvy homebuyer should be aware of. The buyer must work with a HUD-approved real estate agent/broker for all bidding (HUD homes are sold at auction).

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131 Real Estate Terms & Definitions Your Clients Expect You to Know in 2023

The Close

This is when a homeowner turns a deed over to the mortgaging bank to avoid going into foreclosure. One example is someone using a private road to access their own land. This is the government’s right to use private land for a specific, public purpose after compensating the owner. Deed in lieu of foreclosure. Encroachment.