HELP: HUD Inspection-No Electricity

4 Replies

I have a contract on my first property, which is a HUD home. I'm scheduled for the Inspection, but HUD rejected my request to have the electricity turned on. It states on the PCR from HUD that there are electric wiring issues and the system would not power on with a generator, which is probably why they rejected it, BUT they also only estimated the repair cost of $500. This being my first property, I'm a little worried..should I be? Any thoughts from the HUD pros?

Get an electrician to check everything.  There are some things that can be tested without juice running through - but an electrician would have the right tools and be able at least get an idea of the diagnosis.

If you're not able to test the electrical then you might want to plan for the worst-case scenario in your budget (the place burning down the instant you get the power on), and hope for only the 2nd worst case scenario (100% update of service and wiring).

It could also be something incredibly simple to deal with - like a main breaker that is bad.

My hope is that it isn't major, since HUD estimated the repairs would be $500. From reading other threads, it seems like HUD inspections are usually reasonably accurate. Fingers crossed. I'll try to line up a electrician asap.
I found an electrician but my loan officer said they won't except an appraisal done without electrical and plumbing tested.Looks like I may have to cancel this bid.This being my first property, I'm not sure about taking this risk.