Question:

What happens to FHA homes for sale?

Answer:

The FHA homes for sale are homes acquired by FHA when a borrower defaulted on an FHA-insured loan. When FHA pays the lender, they get the title of the property and offer the FHA home for sale.

Usually, FHA will contract a real estate broker to assist them with the bidding. FHA homes for sale are sold with priority to people who actually intend to live on the property. Potential purchasers can submit offers for the FHA homes during the offer period. After the period closes, offers are compared and if the highest bid is acceptable, FHA will take the offer. If certain FHA homes for sale remain unsold for whatever reason, offers will be accepted until an acceptable bid is submitted.

FHA homes for sale which are not sold to potential tenants within certain time frame will be sold to investors. FHA homes for sale are listed on the Internet by HUD-contracted companies. Any HUD-approved broker can submit a buyer's bid and receive commission as per contract.

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Common misspellings: mortage and morgage