Foreclosure in Memphis>Question Details

future homeb…, Home Buyer in Memphis, TN

I have a HUD contract.I have 15 day from the day it is signed to get an inspection.

Asked by future homebuyer, Memphis, TN Tue Apr 12, 2011

The contract just came back from another state. I am just finding out about the contract from my realtor and have until wednesday to get a inspector. The contract came back on the this past thursday and that does not give me a true 15 days. Is there anything thing that I can do, because I wont be able to get the electricity turned on for the inspection in time. What is your suggestion?

Help the community by answering this question:

Answers

8
Are you buying a HUD-owned home?

If so, your inspection period starts from the day that HUD signs the contract. You are responsible for having the utilities turned on in your name but you must also have permission from HUD in order to do that. There is a form that your agent should provide to you that is sent to HUD's servicer. Once that permission is granted you may have utilities turned on, do your inspection, and then have them turned off. They shouldn't stay on for more than 48 hours. In the past, HUD has not been particularly stringent about enforcing the 15 day limit especially if they don't get the signed utility approval back to you quickly. They have added new management companies in the last few months who might be a little more strict but from my experience you don't need to worry too much about this as long as you get the ball rolling today and are diligent about getting it completed.

Just another reason to make sure that you use an agent who is familiar with HUD's processes (like me! =). I'm including a link to a post I wrote about HUD-owned inspections. There are a few changes since it was written but things are mostly the same...
1 vote Thank Flag Link Tue Apr 12, 2011
I am so glad you put this on here because i am in the same boat!!! we had 15 days which was fine for us BUT we have had to cancel our inspection TWICE because they haven't gotten the water on yet! they have now used 7 days of my 15 stalling and i don't know what to do! i feel like telling them to take their house and shove it! wondering if i should tell the listing agent now or never! it looks like the bank may get the appraisal before we get our inspection!
0 votes Thank Flag Link Wed Mar 20, 2013
The15 days starts when HUD hits the send button on the email with the fully executed contract back to your agent. There is a form to get the utilities turned on and that usually comes from the asset manager...there are three, Ofori, Pemco and Home Telos. They might do things differently...but I doubt it. Your agent can call the broad listing broker for guidance. Depending on how long the home has been vacant you might need code enforcement to clear the house to turn on....MLGW will know when the utilities were last on. Like someone said below...don't panic...this can get done. If it is missing any system...say a water heater...you can't turn the water on anyway. Buyibg a HUD can be tricky...but it can pay great dividends. Good Luck
0 votes Thank Flag Link Thu Aug 11, 2011
The first thing you should do find out exactly when you can schedule the utilities and the inspector. If you cannot get it done before the deadline, see about getting an extension on the deadline. Work with your Realtor on all of this. If you don't feel that your Realtor is helping you, contact your closing attorney.

It can be done, so don't panic.

Also, read the contract carefully. If it is the TAR "Purchase and Sale Agreement" then most likely, you have 15 days from the binding agreement date to not only have the inspection done, but to get a list of requested repairs to the sellers. If it's a HUD or Foreclosure sale, the contract will be different.

Good Luck!
0 votes Thank Flag Link Tue Apr 12, 2011
Usually the date the clock starts clicking is when the sellers signs the offer making it a contract no matter if you get a copy right away or not. You should have written in that the inspection starts they day they get it dewinterized in utilities on to protect you. If you are responsible for turning utilitie son, that should have been started as soon as you got the verbal they accepted your offer despite not having signed docs yet. You have to protect yourself if you dont have an agent, if you do have a buyers agent, they should be guiding your through this.

Please see my blog

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_…




For a details list of tips and adfvice when buying a bank owned home.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Apr 12, 2011
Usually the date the clock starts clicking is when the sellers signs the offer making it a contract no matter if you get a copy right away or not. You should have written in that the inspection starts they day they get it dewinterized in utilities on to protect you. If you are responsible for turning utilitie son, that should have been started as soon as you got the verbal they accepted your offer despite not having signed docs yet. You have to protect yourself if you dont have an agent, if you do have a buyers agent, they should be guiding your through this.

Please see my blog

http://www.trulia.com/blog/scott_godzyk/2008/08/so_you_want_…




For a details list of tips and adfvice when buying a bank owned home.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Apr 12, 2011
I'd chew my agent out. Obviously they aren't experienced with foreclosure sales as 15 days is the long average (many banks only give 10 days) It's critical that any Buyer agent working with someone like yourself know this in advance and have everything lined up and ready to go.

Is the contract you received back the HUD addendum, typically the standard offer to purchase is used first, if your offer is accepted then a second bank or HUD addendum is sent to you for signature and this is where the 15 day period is listed. You sign it first and then it's returned to the bank to sign the 15 days begins from the time the Sellers signs off.

If this is already done, and you truly don't have time to get your inspections done for any reason, you've got two choices,get your agent to come up with the money that it's going to cost you to keep moving forward (good luck with that) or terminate your contract in writing immediately and either stop pursuing foreclosures which are rarely the deal buyers think they are, or come back with a new contract. HUD contract do allow for termination within the 15 day period and this will save you your earnest money deposit.

You've learned a very valuable lesson which is not all buyer brokers are the same and this is why it's critical to interview any broker/agent your considering using and ask them straight out the following:
How many years have you been a full time agent? (You want someone with at least 5 years of experience and 10 is better) How many transactions did you close last year/ (Don't work with anyone who closed less than 12 transactions in a year and again more is better.) If you are determined to by a foreclosure you need to find out how many foreclosure sales has the agent handled in the past couple of years, again you want someone who has handled at least half a dozen and again the more the better. Under no circumstances do you want to ever buy directly from the listing agent of foreclosure properties. Theses agents have the ethics of their masters; the banks who feed them these properties to list. They will cut your heart out with a dull spoon and could care less.

As someone with extensive experience with representing buyers and with foreclosure properties in specific; I will repeat myself yet again, Foreclosures are rarely the deal Buyers think they are. Out of 10 foreclosure sales 1 or 2 at best is really a deal, 6-7 are average deals at best after all the work is done and 1-2 are real money pits that will suck a buyer dry. They are inherently more risky to buy and first time homeowners should avoid them like the plague. There are many motivated Sellers in today's market and the deal you get can be as good or better and the risk you assume will be less.

Good Luck.
0 votes Thank Flag Link Tue Apr 12, 2011
First the contract became binding on the date it was executed by HUD. This is when the 15 day period begins. When did they deliver the contract to your agent? Ultimately, you can ask for an extension to complete the inspection. If your agent is in Memphis, he/she can get the utilities on with the executed contract. The expense of which will be passed along to you.

If I were your agent, I would get the utilites on in my name, get your inspector there the same day or the following and have them off w/n 24 hours of the inspection(s) ending. This can be done in 5 days, assuming the availability of the inspector & appraiser.
0 votes Thank Flag Link Tue Apr 12, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer