I cannot help but think, this is more of an economic stimulus than it is a rehabilitation program.. Good luck.. The house we are buying has been on the market for 6 years and NO takers have either, put up with the BS long enough and pulled out (Which makes up most of them) Or ended up being rejected by the underwriter because HUD ordered another 50K done on your house MANDATORY in the sale and it kicks you out of your qualifying range... It's a racket and will one day soon be exposed...
If your home is in a city with housing inspection requirements you may also face the challenge of hiring only contractors approved by the city - in other words, get out your checkbook for the permits and inspections you'll need, plus possibly higher labor costs. Many persons try to sneak around this requirement and often they get away with it but if you've already tipped off the city as to your intended purchase of this home, you may be watched closely.
When I buy a repo we always do the inside work first before beginning on the outside. Once there is outside activity, people start to notice (like the city's weekly trash haulers) and report the activity. (I also don't want to attract thieves.) The city wants the money from your permit fees; I like to keep my costs down so I wont tell you that everything I do is per their procedural requirements. However, should they inspect my work later, they never find any issues because the work is done correctly in accordance with code requirements. I am not telling you to do your work this way but I am suggesting that we are in a highly competitive market and every dollar saved counts.
As a reminder, I provide a 25% commission rebate to my buyers on all properties they purchase, so you'll get a check from me at closing. That should more than take care of the permit and inspection fees for you. Don French 330-327-1188
That's what blogs are for, you should try one.
Also, I find your use of the word "rape" in this context to be tasteless, inappropriate and lacking empathy.
Just my opinion.
Thank you for pointing that out. I'm glad you are finally seeing the reality of HUD homes as posted on my BLOG. :)
By the way, most 203K loans are based on guesstimates, high to low... There are no promises with repo homes... If it concerns you, your best bet is to always follow your gut feeling... Move on to one that makes you feel less afraid...
The gas company can tell you where the leaks are and a plumber can fix them fairly quickly in most cases. It may cost you a few hundred dollars, but if you like the house it is worth it in the long run. I agree that checking the property report online is a big help. http://www.nhmsi.com
Because the properties are sold as is, the inspection is for your appraiser and your own knowledge. HUD does not make repairs and does not reduce the price for inspection.
Read page 7 regarding the AS IS clause with HUD homes. You can cancel the sale if you are doing FHA financing. If not, you will likely lose your deposit.
if you can't get an inspection done because of the utilities is that good enough reason to get out of the deal and not loose your earnest money?
in the long run may be worth it to loose it to get out of this mess.
maybe this is why the previous deal fell thru.
why did you raise your bid if the other offer fell thru?
I have viewed the online appraisal and the repairs that are preventing the utility activation are not listed in that sheet.
I guess I don't understand how I'm supposed to advance while in this catch-22.