'HUD,' (hud) or Housing and Urban Development, is a federal agency. It oversees homes the government owns due to repossession, as well as ensuring tenants and renters are treated fairly under the law. You've probably seen a home advertised for sale as a HUD home. This means the former resident wasn't able to fulfill the terms of the mortgage, and the lender repossessed it. The loan was insured by the government, so the government then paid the lender for the home. Now, the government will attempt to sell the home to cover losses. Because HUD is a non-profit agency, it won't attempt to sell the home for financial gain. If it sells for more than the mortgaged amount, HUD will use the funds to cover legal costs involved in the repossession and any necessary repairs. HUD's non-profit policy means you can sometimes purchase a HUD home for less than its market value. This program may mean you can afford a home when you didn't think it was possible, or that you can afford a larger home than you anticipated. All certified real estate agents are qualified to guide you in purchasing a HUD home, so for more information, speak to one in your area.