My buyer is buying a HUD home with Furnice and AC problems with a FHA IE, $1500 escrow to fix electric problems with HVAC. I had my inspectors in and they say that the house needs a new AC. and the furnice is old and probably corroded. The $1500 would just start the problem. A new unit is $4700. It seems that misrepresented the problems with furnice.
ON a side note they improperly winterized the house and a pipe burst in the dishwasher. When we turned on the water to inspect it dumped a lot of water under the subfloor. The laminate was built around the dishwasher so instead of going on the floor it went under the floor. THe people who care for the house told me that they would put fans and heaters (remember we have no working HVAC system) to dry out the problem. They did not do this. When I called the person at HMBI yesterday they told me I call to often and basically indicated I was too much trouble. I wrote them a Email describing the problem and stating the house was their responsibility until closing.
My buyer is not allowed to do anything until closing.
1) Do we have any remidy other then cancelling the contract?
2) Since it is FHA IE mortgage the lender could require the sistuation remidied. Does HUD ever remidy? My buyer bid asking price.
3)Anyone have any experience dealing with HUD and these issues. My broker is out of town for 2 weeks
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