Hub foreclosures are foreclosures by the Department of Housing and Urban Development. The process of buying homes that are HUB foreclosures is very different from ordinary foreclosures. The other type of foreclosure is a VA, which stands for Veteran's affairs. This type of foreclosure is also bought in a different way then regular foreclosure.

The federal housing administration is part of the Department of Housing and Urban Development, and provides federal mortgage insurance. If a home becomes foreclosed, then the lender can file an insurance claim with the federal housing administration for the balance outstanding on the loan. The federal housing administration pays the debt and then transfers ownership to the Department of Housing and Urban Development. Government foreclosures by the Veteran's Affairs department work in the same way.

VA foreclosures are particularly attractive because you actually don't have to be a veteran to purchase them with preferential loan rates and no money down. All government foreclosures are priced at market rates but allowances are made for the state of the property. If repairs need to be made, then the cost of these repairs and improvements will be factored into the sale price.

When you buy one of these homes, you are buying it as it is where it is. There is no government agency covering the cost of any work that is needed. HUD and the DVA leave you to do the inspection work and make sure you know what you are buying.

Websites that provide a list of HUD foreclosure properties are directly linked through the HUD website for each individual state. When you have found a home on the site that interests you, you click the link that will take you to the appropriate approved real estate agent who can show you the property. HUD uses real estate agents, choosing not to deal directly with those who wish to buy, as their intermediaries. The Veteran's Administration uses the services of Ocwen Loan Servicing for the management and marketing of their properties.

When you want to buy a government foreclosure it starts with you making a bid for the property. Bids will be accepted for a foreclosure for a certain length of time. After the bidding has ended the sealed bids are opened and the highest bidder wins.

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