Friday, January 18, 2013
Thinking about buying an HUD foreclosure?
HUD foreclosures can be a very good buy, and because of the pricing it is a tempting thing to do. But is buying a HUD home for everyone?
Purchasing a HUD foreclosure is tricky and should be approached with caution.
Once a sales price is established and agreed by HUD, it is wise to have an independent inspection of the home. This will give you an unbiased opinion as to the condition of the property. The cost of the inspection varies but you can expect somewhere $350- $1000. The inspections are the cost of the buyer and must be paid at the time of the inspection.
Additionally, if the utilities must be turned on to complete the inspections, they must be turned on in the Buyers name and that cost must be paid in advance as well. If the property has been winterized the buyers must deposit a de-winterization fee with HUD to be used to re-winterize the property after the inspections have been completed.
If the utility meters have been removed the buyer is responsible for the installation of the meters at the time of reinstall. If the gas meter has been removed the buyer must pay for a pressurization test to insure the gas may be turned on to the property.
Obviously, the cost of determining the condition of the property could exceed $1,000!
If you decide that you do not want to purchase the home the monies paid are gone.
So, before you are tempted with what seems to be a great deal, remember what it will cost you just to find out!