I deal with HUD homes all the time and the property condition reports are a joke. Your only defense is a good inspection. If you use FHA financing, you have to use their appraisal, which is also often a joke. I"m sorry to hear this story, and I wish you the best of luck.
1. Property Marketed by HUD and the Listing Realtor. They say "As Is"; I totally understand that
WITHIN Context. However, I believe any Reasonable & Prudent Person would consider
the "As Is" to represent what is KNOWN by both HUD, the Realtor and, DISCLOSED, "up to"
the Buyer's 10 day Inspection. If any additional damage is found by the Buyer's Inspection, the
Buyer should have the right to either Withdraw of renegotiate the Purchase Amount.
2. Initial Property Inspection. What appears to may have been massive water damage (possibly
Freeze Damage to the plumbing system), Buyer questions plumbing leaks. However, HUD
inspector says system pressure tested and NO leaks. (Falling belly insulation with water
marking plus fallen belly paper, NOT DISCLOSED in their PCR.) Buyers initially rely on HUD's,
an Realtor's, honesty and, THEIR PCR.
3. Bait & Switch? The Listing Realtor, AFTER the contract has been signed, the Realtor only
THEN produces a more detailed PCR with details NOT disclosed to the Public! Upfront Non-
4. When Buyer, under contract, raises questions about how ADDITONAL Repairs, including by
Thieves AFTER our Inspection could render the HOME with no value, Realtor then says HUD
considers the Value of the Home as minimal. Though the Home is "pushed" and little emphasis
given to Land, Value is really in the Land! It doesn't matter that HUD, and Realtor, put 99% of
Marketing and Price on the HOME. That really doesn't matter. They now state that the Home's
Value is Minimal so purchasing the Home (as Advertised) should not be considered even with
your being an Owner Occupant! Is this Legal or Ethical????
5. Further discussion of the Buyer's Rights are chiseled away at by the Realtor acting on behalf of
HUD. Says a HUD Contract is "one sided". It is your right, and responsibility, to obtain an
Independent Inspection within 10 days or forfeit that right. You should note that this property is
on a Supra Key box and we will NOT drive the distance to let you in and wait while your
inspection is done. HUD will make NO Repairs and since the copper wiring feed from the Meter
to the Interior Panel Box has been stolen, you are PROHIBITED from making that repair so the
Power can be turned on. So looks like you are Precluded from your right to that 10 Day
Inspection. Realtor Comment is made that HUD practices by the Golden Rule; "HUD has the
Gold and makes all the Rules!" Buyer has NO rights.
6. Buyer makes numerous calls to TREC Certified Inspectors who reportedly have the Supra Key
Cards for access. Everyone state they have NO Generator for testing the Electrical System.
Even the 3 referred by the Realtor. Everyone states the Power must be "turned on" for an
Inspection. Again, Realtor says HUD will NOT allow ANY repairs to assist in the
RECOMMENDED Buyer Inspection.
7, Realtor threatens that if Buyer has an Inspector use a Generator for the Inspection, if
ANYTHING goes wrong, Buyer will be held accountable for any, and ALL, property related
damages. (Remember, HUD used a Generator....)
8. Realtor says that, even though my Offer was based on what HUD set the value of the HOME
at, if thieves return to steal the HVAC, more wiring, interior fixtures, appliances, or even beat
holes in the walls, I am still responsible for those NEW damages by paying the ENTIRE Offer
Amt, and if I return for my final "walk thru", there will be NO Price Reduction; NO
EXCEPTIONS. At the very least, I will lose my Earnest Money for failure to complete the
Contract. That is MY problem and Loss.
Why is there NO accountability to HUD and/or their Partners in Non-Disclosure / Concealment????
I am not a practicing attorney but I do have a law degree. Without question it is outside the scop of my license as a Real Estate Broker to offer any legal opinions or advice.
To get an opinion try http://www.oregonrealestateattorney.com
Call the atty referral service in your area. My experienmnce for 33 yeras has been that many lawyers claim to be real estate specialists but few really are.