I have noticed when the cold water comes into the house after being pumped in from a outside well,it is red like mud at times.Not sure how this happening unless it's some how getting mixed into the water from down inside the well or in the lines somehow?

It's the well itself. This is probably redmud or rust causing the red color. Would call out a well driller and see if he can dig a bit deeper and try to bypass this. Or you can install a filter that may or may not correct the color of the water. If the pipes are old it maybe rust coming from the pipes.

Do you have any neighbors nearby that you could talk to and see if they have this same problem?

What kind of well pump is it? If the well casing cracks, you could get dirt in the well. Older large bore wells, 24" are susceptible to leaks through the concrete joints. Tell us a bit more about the well. In many cases, mine for example, I get iron from a seam that apparently is cut by my well. Not much to do although a whole house filter works pretty good.

Not sure about the kind of pump.but its old just like the well.The well is a bore well with concrete walls.The well was put in over 50yrs ago.The water is clear one minute and changes to this red color and then it will change back to clear while its running.Thanks for the info.

Nobody is having this problem.The well is a bore well with concrete walls and was put in over 50yrs ago.The water runs clear one minute and then changes to red color and then back to clear.Thank you for your Info.

The red you see is iron oxide, (rust). It sounds like the water table has fallen and the well is closing in. this would explain the mud. Call in a well company and have it checked out. Time to go deeper with that 50 year old well. Good luck, Tom