How do I buy a HUD home in Maryland?

Find the home on HUD Home Store (hudhomestore.gov), get pre-approved or show proof of funds, and have a HUD-registered real estate broker submit your bid online during the bidding period. If HUD accepts it, you sign HUD's contract and close with a settlement agent, usually within 30 to 60 days.

Do owner-occupants get priority on HUD homes?

Yes. Homes listed as insured or insured with escrow have an exclusive period when only owner-occupant buyers, government agencies and approved nonprofits can bid. HUD extended that period from 15 to 30 days in 2022. Investors can bid after it ends if the home has not sold.

Can you inspect a foreclosure before buying?

For HUD and bank-owned homes, usually yes, though the home is sold as-is and utilities may be off. At courthouse foreclosure auctions, usually no: you bid without going inside, which is why auction buyers price in a large repair cushion.

How long does a short sale take in Maryland?

Often two to four months, sometimes longer, because the seller's lender has to approve the price after your offer is signed. Short sales suit buyers who can wait and do not need a firm move-in date.

Maryland guides

How to buy a HUD home, foreclosure or short sale in Maryland

HUD homes are bid online through a registered broker, bank-owned homes are bought much like any listing, and courthouse auctions are cash with no inspection. The discount is real only if you price the repairs first.

By Stephen Wilson, REALTOR and owner of a licensed Maryland general contractor. Updated October 25, 2026.

Four kinds of distressed sale

Type	Who sells it	How you buy
HUD home	HUD, after an FHA-insured loan was foreclosed	Online bid on HUD Home Store through a HUD-registered broker
Bank-owned (REO)	A bank or loan servicer	Offer through an agent, usually on Bright MLS, on the bank's addendum
Foreclosure auction	A court-appointed trustee	Bid in person or online at the auction, with a certified deposit
Short sale	The owner, with lender approval	Normal offer, then wait for the lender to approve the price

Buying a HUD home

Listings are on hudhomestore.gov with the price, bid deadline and financing type. Insured means the home can qualify for an FHA loan as-is; insured with escrow means it can, with money set aside for listed repairs; uninsured usually means cash, a renovation loan or conventional financing.
Owner-occupants go first. Buyers who will live in the home get an exclusive bidding period before investors can bid (up to 30 days on insured listings).
Bids go in online through a HUD-registered broker. HUD reviews them after each deadline and accepts the best net offer, which may be below the list price.
Programs. HUD's Good Neighbor Next Door program offers 50% off the list price of certain homes in revitalization areas to law enforcement officers, teachers, firefighters and EMTs who agree to live there for three years. Eligible homes are limited; check HUD's site for current listings and rules.

Bank-owned homes

These are bought much like any other listing: you make an offer through an agent and get an inspection period. Expect the bank's own addendum, which usually overrides parts of the standard contract, an as-is sale with no seller disclosures, and slower responses. Get your pre-approval or proof of funds ready before you see the house. Browse current homes for sale and ask us which ones are bank-owned.

Courthouse foreclosure auctions

Maryland foreclosures are sold by a trustee at public auction, then the sale is reviewed and ratified by the Circuit Court. Bidders usually need a certified deposit set in the sale notice, cannot inspect the inside, and take the property with whatever problems it has. Some auctions are followed by weeks or months before the court ratifies the sale and you can settle. Search the land records for liens and get a title opinion before bidding.

Short sales

In a short sale, the owner sells for less than the loan balance with the lender's permission. You sign a contract with the seller, then the lender reviews it, which takes time. You can usually inspect and keep normal contingencies. Patience is the price of the discount.

Price the repairs before you bid

Distressed homes often have deferred maintenance, winterized plumbing, missing fixtures or water damage. The bargain disappears if the repairs come in at twice your guess. Stephen owns a licensed Maryland contractor, Monarch Bay Renovations, so we walk the house with a real repair budget, and our property management team can tell you what it will rent for after.

Quick answers

How do I buy a HUD home in Maryland?: Find the home on HUD Home Store (hudhomestore.gov), get pre-approved or show proof of funds, and have a HUD-registered real estate broker submit your bid online during the bidding period. If HUD accepts it, you sign HUD's contract and close with a settlement agent, usually within 30 to 60 days.
Do owner-occupants get priority on HUD homes?: Yes. Homes listed as insured or insured with escrow have an exclusive period when only owner-occupant buyers, government agencies and approved nonprofits can bid. HUD extended that period from 15 to 30 days in 2022. Investors can bid after it ends if the home has not sold.
Can you inspect a foreclosure before buying?: For HUD and bank-owned homes, usually yes, though the home is sold as-is and utilities may be off. At courthouse foreclosure auctions, usually no: you bid without going inside, which is why auction buyers price in a large repair cushion.
How long does a short sale take in Maryland?: Often two to four months, sometimes longer, because the seller's lender has to approve the price after your offer is signed. Short sales suit buyers who can wait and do not need a firm move-in date.

This guide is general information, not legal, tax or financial advice. Rules change and vary by county; confirm the details for your situation with the agency named above, a tax professional or an attorney.