San Antonio, TX · Member since 2013 · 17 posts · 0 votes
Won a hud listing and had an inspection. There is a giant tree around a ton of electrical wires which will cost a bunch to replace. It has a 2 prong wiring but it’s been rigged with 3 prong outlets with a fuse box. Asbestos siding needs to be replaced in a small area. There’s some wood rot and a few other cosmetic issues. Are these things I can ask my agent to renegotiate with hud? I’m thinking of bumping it down by 6-7k. It’s 11k under county appraisal as of now. Please give me your thoughts, thanks.
No HUD will not renegotiate at all. Your options are to move forward and close or to terminate. Keep in mind you will lose your earnest money if you fail to close
No HUD will not renegotiate at all. Your options are to move forward and close or to terminate. Keep in mind you will lose your earnest money if you fail to close
HUD will not reduce the price. You can terminate the deal, since it is an inspection issue my experience is you will have your EMD returned. When the home re-lists you can attempt to purchase it at a lower auction price.
I did make the assumption that this was an investor purchase. Here is the HUD policy on earnest money:
1. Cash / Conventional Sales: Forfeit 100 percent of the deposit for failure to close, regardless of the reason. 2. Insured Sales: Forfeit 50 percent of the deposit for failure to close if purchaser is determined by HUD or DE underwriter to be an unacceptable buyer. Forfeit 100 percent if sale fails to close for any other reason.
Additionally @Johnnie Fair, do not rely on the tax value of the property as its value. The tax value has zero to do with the real value in Texas as we are a non disclosure state. Have your agent run comps so you can then make an informed decision