HUD listings are in constant fluctuation depending on how many lending institutions are foreclosing on how many houses in a given time frame. Even with the TARP (troubled asset relief program), federal funds allocated to banks and mortgage firms for working with home owners to avoid foreclosure, the number of foreclosures is constantly on the increase.

Before HUD lists the property for sale it of course has taken title to the property and paid the lending institution for their loss on the mortgage. But

even after HUD takes the property and puts it into their inventory with thousands of other homes several things must occur. The system that has been established is broken down here:

1. HUD pays the Mortgage holder for all of its losses on the property

2. HUD takes title to the house

3. HUD transfers management of the house to a Marketing and Management company also referred to as an M&M contractor.

4. The M&M company creates a file for the house and assigns a professional cleaning company to clean the interior and exterior of the house, mow the grass and continue the maintenance of the house until it is sold.

5.The M&M then orders an appraisal of the home from a local appraising firm that they have contracted with.

6.  Once the property has been cleaned and secured and appraised the house is assigned to a Broad Listing Broker (BLB) to have the property listed in the local MLS (Multiple Listing System) at the value that has been determined by the appraisal performed in step 5.

7. The BLB adds the property to the MLS but the bids for the house are offered online and not submitted to the broker. This is why the broker makes only a small percentage of the sale.

Now that the property has gone through each of these steps above the general public is able to offer a bid on the property through a registered real estate agent. This registration is very important because if the agent and their broker are not registered with HUD they can not place a bid. To find a local broker in your area go to USHUD.com and a registered broker in your area will be provided.