Looking at a HUD home that has a lead paint report that came back with a lot of spots in poor condition. Are these usually accurate? How about the estimate that they give to repair if it is needed?
Ooooo baby HUD + Lead paint = fun!
If I were you, and if I had the property under contract, I'd get my own test done while doing inspections, just to have a second opinion on it. HUD, as well as most government agencies, operate under "freak out" for things like lead paint, mold, asbestos, etc. because they really, really, really want to cover their a**es.
Our experience: "Any lead that is chipped, cracking, or peeling must be abated." With our 203k we were entitled up to $4k (I think) reimbursed for lead paint abatement costs. Our estimate cost for abating was $2800. The HUD agency (Sage Acquisitions at the time) provided paperwork stating $2800 would be reimbursed. All parties signed it. Morning of closing day, they decided it was $2300 instead, with no proof, no paperwork, no nothing, and we could either delay closing and backtrack to re-inspections, or just close.
We opted just to close, gave them a mental middle finger, and our mortgage broker felt so bad that he deducted $200 from his costs. Moral of the story: bidding on HUD houses is like playing the computer in chess: right or wrong, the computer often wins something.
Win some, lose some, but we got the house in our hands - with HUD homes we learned that can be the hardest part. Our philosophy became GET THE HOUSE, and deal with it later.
Hope this helps!
Thank you @Noreen Eddy ! So HUD actually reimbursed for abatement? Do you recall what their estimate was prior to your inspection? The one I am looking at has a estimate of $17.7K. I haven't looked yet, but the pictures don't look bad.