Hud home price inflation

[Steven Ekenstedt]

I am a new member with a question.

I am looking a Hud homes in Northern Wisconsin and I saw a house that was listed at auction for 76k was bought and is now listed as a hud home for 170k... it has a fairly substantial mold problem. It was purchased in 2008 for 122k and foreclosed in 2019. The assessed value was went down a couple years ago which I assumed was due to the mold issue or state of disrepair. How can a seller justify a near 100k price increase over auction when it appears nothing has been done to the property? 

[Greg H.]

So, there are one of 2 scenarios but HUD starting where the loan was is definitely not one of them.

The most probable is, the property was foreclosed on and then listed as a CWCOT property on a auction site such as Auction.com, Hubzu or Xome and the starting bid was 76K. The property never sold and was transferred to HUD and was appraised by an appraiser and is now listed at the appraised value(often was off in smaller communities)

Almost certain my first scenario is correct but 76K could also have been the foreclosed minimum set by the lender and was foreclosed and then transferred to HUD

Either way that is the price and if it does not sell the price will be reduced over time so continue to monitor