HUD Home Information - Why can’t I say “HUD Foreclosure” or “HUD Repo” when I advertise these properties? - www.cjharrington.com

It misleads the public. HUD did not and does not foreclose.
“Repo” is a slang term that is used for personal property, with negative connotations. HUD finds these terms unnecessary and even offensive in real estate transactions.
HUD does not foreclose. It is the lender or “mortgagee” that was forced to foreclose due to default by the owner/borrower (mortgagor) on the terms of repayment of the FHA loan.
As the insurer for FHA loans, HUD accepts the property that was collateral for the mortgage and pays the mortgagee the insured unpaid loan amount, plus costs of foreclosure.
HUD becomes a receiver for the property after the foreclosure action is completed and the property is conveyed to HUD in exchange for the payment of the claim.
We want the public to regard these properties as potential homes, thinking positively toward the future, not looking backwards to the unfortunate past.
Agents and brokers who will not represent HUD-owned homes in a favorable way should not advertise them at all.