Closing on a HUD home
As stated before, all HUD homes are sold As-Is.
In other words, HUD will not make any warranties or guarantees about the
home and the buyer is taking the home in its current condition.
Furthermore, HUD will not complete any repairs on the property.
As stated in the required purchase contract, the
buyer has 15 days to conduct a home inspection on the property. All
costs for the inspection are the sole responsibility of the buyer, to
include hiring a competent inspector and turning on the utilities to
inspect the various systems of the home.
A buyer may not make any repairs to the property
prior to the close of escrow. In addition, the buyer is not allowed to
move any of his or her possessions into the home until after the close
of escrow.
All sales must close within 45 days of acceptance
of the winning bid. Should the buyer need to extend the closing date,
the extension must be approved by HUD. Extensions are granted in 15 day
increments and only one extension is allowed. HUD charges a fee of
$10.00 to $25.00 per day (depending upon the sales price) to extend the
close of escrow. If the extension is approved and the purchase of the
home fails to be completed by the new extension date, the buyer will
forfeit the extension fee, regardless of the reason.
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