Should You Do A HUD Homes Inspection?It is my opinion all HUD homes should have an inspection because all HUD properties are sold "AS-IS" condition. There are no representations or warranties, expressed or implied, on any HUD repo homes. Buyers are also advised to check for zoning laws violations.HUD very strongly advise Buyers to have HUD homes inspected by a qualified home inspection company to satsify themselves as to the condition of the property at the time of the sale. You may be able to void the contract if you find major defects that haven't been disclosed or discovered by HUD. But again, they will not do repairs.
The Buyers of HUD repo homes have 15 days after the ratification date on the Sales Contract to have all inspections made and a respond prepared. The ratification date is the date that a HUD representative signs the Sale Contract. This time period could be up to two weeks after your bid has been accepted. A couple of years ago HUD was encouraging Buyers to have inspections done on the HUD repo homes BEFORE they bid. Of course, this is an example of governmental logical. First, why would you want to spend $300-$400 for inspections and you don't even know if you are going to be the winning bid. Secondly, HUD will not let you turn on the utililties UNTIL you have a Sales Contract signed by HUD. So, you are going to spend $300-$400 for inpsections and you can't inspect the furnace, A/C, plumbing, and electrical. Doesn't make sense to me! No work or repairs are to be done to HUD repo homes prior to the close of the tranaction. An accepted bid is not a tranfer of ownership. Buyers may not use government owned homes for storage of personal items or occupy the premises under any circumstances. Occupying or working on HUD repo homes prior to the close will be treated as trespassing. This could results in the cancellation fo the Sale Contract, forfeiture of the earnest money deposit and it also could cost your real estate agent their right to sell HUD homes.
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