Chances that HUD will renegotiate?

Question

Under contract with HUD for a fixer upper...  contract price is the bare minimum net HUD would accept, and intend close with cash.

Survey results were a bit.. murky... due to a boundary agreement filed about 20 years ago  for an easement where the garage roof overhung the neighboring properties by approximately 2 feet.  The garage no longer exists.

Title insurance underwriter quite possibly might require a boundary survey which I'm told is quite costly.

Any chance HUD might be willing to foot the bill for such survey?  Or split the cost?

Curt Davis · Answer

Highly doubtful as your not dealing with understanding sellers.

Jean Bolger · Answer

My understanding (which I'll admit is limited) is that the easement goes away when the subject of the easement goes away. No garage, no garage easement. The easement simply doesn't exist on its own.

I hope someone with more legal expertise in this will chime in, I'm curious now

NA Jones · Answer

Thanks everyone :)

Mark Ferguson · Answer

hud only gives small credits for vandalism or damage after a contract us accepted as was previously stated. Your only option is to cancel and try to claim their was a title issue for the reason. It's a long shot but you might get your money back.

Greg H. · Answer

HUD will only compensate for changes in conditions after the contract has been accepted.  For example storm damage or vandalism after the contract has been accepted.  Your strategy could be to walk away and forfeit your earnest money and attempt to purchase later at a lower price.  Future buyers will most likely encounter the same issue and therefore the property could sit on the market for a while

Walking away from $500 or $1000 earnest money hurts but hurts less than getting in to a bad deal

Wayne Brooks · Answer

I don't know, but our typical survey is a boundary survey.  The surveyors locate all the corners, and note fence lines, concrete slabs, etc.  $175 does sound cheap though.  HUD generally will negotiate for a "changed condition" like above, but I think this outside that scope.

NA Jones · Answer

Forgive my blatant noobness @Wayne Brooks but what did I spend $175 for if not a boundary survey?  :)

@Terry B. Impressed by your agent :)  I don't know either if they will consider it but I guess it won't hurt to ask..

Wayne Brooks · Answer

A typical survey IS a boundary survey.  Get a price.

NA Jones · Answer

The typical survey was $175.  The underwriter may demand a boundary survey, which I'm told is much more.

@Curt Davis That's exactly what I didn't want to hear ;)  I was hoping someone would give me a little false hope!  :P

Chances that HUD will renegotiate?

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