Property Condition Report for HUD House for Sale

Property Condition Report for a HUD House for Sale is similar to a home inspection but you still should get one.

It is extremely important to understand that HUD house for sale is sold in "AS-IS" condition. This means that the condition of the HUD foreclosure listings are what you see is what you are buying.

HUD makes no warranties and they encourage you to have a Home Inspection done on HUD homes for sale. They says they will provide a Property Condition Report for each HUD house for sale.

It has been my experience that they may provide maybe 50% of the HUD foreclosure listings.

What is a Property Condition Report? Here is what the M&M Contractor HMB Inc says they are and what they provide.

"HMBI will prepare a property condition report for each HUD house for sale. Prior to completing a property appraisal HMBI will prepare and provide to the appraiser a comprehensive property condition report that provides potential purchasers with any information known to HMBI that may affect the habitability, functionality or HUD homes for sale, including but not limited to: the functionality of all heating, cooling, plumbing, gas and electrical systems and appliances; outstanding code violations, pending litigation, demolition orders, other legal actions that may impact the property or violations of Homeowner's Association covenants that are known to HMBI and that will not be resolved prior to closing; condition of the septic system or well; existing transferable warranties; copies of Homeowner's Association documents; the Environmental Compliance Record, the lead based paint disclosure, and the mold disclosure. The completed Property Condition Report will be posted in the property file on EMS and will be made available to prospective purchasers through the Internet Property Listing."

The Property Condition Reports for the HUD homes for sale are very similar to a Home Inspection Report. They do check the heating system, A/C, plumbing, and electrical.

The Property Condition Report for HUD house for sale SHOULD NOT take the place of a Home Inspection Report. Spend the $250-$400 for the Home Inspection Report, it is worth it.

One of the major concerns of HUD homes for sale in cold weather states are frozen(busted) water pipes. Here in Indiana, the HUD homes that I have personally brought, about 50% of them had busted water pipes. Its seem they don't do a very good job of winterizing the pipes.

The Property Condition Report is supposed to be available to you before you make a bid. It does give you a good idea of the major defects of a HUD house for sale.

This photo is an example of HUD homes Texas. It is HUD home Dallas and priced $65,000. There are usually between 1000-1500 HUD homes Texas and bank foreclosures.

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