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What is the differnce between a REO and a HUD home?

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Question by rxygrc06: What is the differnce between a REO and a HUD home?
I’m looking to buy an investment property in Atl, GA but don’t know what is the difference between a REO and a HUD home. Can anyone tell me if they are the same or if one is better than the other?

Best answer:

Answer by Ryan M
REO is owned by the bank. HUD is owned by the federal government. HUD may be the better option just because they are usually offer you better financing, especially if you are a first time buyer. It really depends on the house though.

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Dan in Reo Coupe
REO

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Dan in a restored 1923 (?) Reo Coupe–complete with side hatch for your golf club bag…

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  • donfletcheryh

    A HUD home has been sold to HUD by the bank to get whatever it can for it, and HUD has given the bank its mortgage insurance payment.

    Reo has not gone through the transfer to HUD.
    If a bank plans to try to sell it after for closure for an amount more than HUD will pay, they may at a later time decide to accept HUD settlement, for less than they might have asked in REO.

  • Landlord

    Go with the HUD home. HUD makes sure everything is in good order before they sell, you take your chances with a regular REO.

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