“HUD” stands for the U.S. Department of Housing and Urban Development. They are the primary housing and lending regulatory authority in the United States. HUD is responsible for the operations of the Federal Housing Administration (FHA), which is the agency that insures mortgage lenders against loss on FHA home loans. When FHA borrowers default on their obligation, the lender initiates the foreclosure process. HUD becomes the owner of the properties after foreclosure is completed and after the lender has made a claim against the FHA insurance fund for payment of the remaining balance of the loan. HUD wants to sell the property as quickly as possible and recover as much of the claim amount as it can to replenish the FHA insurance fund. Since 1999, HUD has hired Management and Marketing (M&M) Contractors to maintain and sell the HUD-owned single family residential properties (1 to 4 units). These M&M Contractors, following HUD guidelines, are responsible for all aspects of property care and resale on behalf of HUD. If you are looking to purchase a HUD property in Florida, visit the NHMS site.