What is a HUD Home? A HUD home is a foreclosure property that was taken over by HUD (Housing and Urban Development) as a result of a deficiency by the home owner on an FHA mortgage. HUD homes are available to anyone as long as they can qualify for a loan or pay in cash. HUD homes are sold "as-is". If a HUD home is in need of repairs, the price is marked down accordingly. HUD homes are sold through a bidding process where HUD-approved real estate agents submit sealed bids on behalf of their clients. HUD then reviews and typically accepts the highest bid.