What happens to FHA homes for sale?


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.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: