What are HUD, VA and Fannie Mae foreclosure homes?

The United States Department of Housing and Urban Development (HUD) oversees the Federal Housing Administration (FHA), which provides federal insurance on home mortgages.  If a homeowner fails to make payments on a FHA loan, the mortgage company forecloses and files an insurance claim with HUD.  In exchange for paying off the unpaid loan balance to the mortgage company, HUD receives title to the property.  At this point, the house becomes a HUD home.

Much like HUD, homes that are financed using a guaranteed loan by the U.S. Department of Veterans Affairs (VA) and foreclosed upon due to non-payment of the loan, are acquired by the VA in order to recuperate any losses incurred from the foreclosure.  

Fannie Mae, also known as the Federal National Mortgage Association (FNMA), is a privately owned corporation created by Congress to support the secondary mortgage market.  Though Fannie Mae does not lend money directly to home buyers, the corporation provides a constant source of funds for direct and wholesale mortgage companies throughout the nation.  However if a property is foreclosed upon due to a defaulted mortgage loan, Fannie Mae will take title and sell the home to hedge against any loss from the mortgage.