What is a HUD home? A HUD home is a residential property that was acquired by the U.S. Department of Housing and Urban Development due to a foreclosure on an FHA insured mortgage. HUD homes are foreclosed homes owned by the government. Unlike a bank owned foreclosure, HUD homes are purchased through an online bid with a licensed Realtor. For more information on how you can purchase a HUD home, contact your Gavish Real Estate Agent today.