Answering HUD Questions: What is Repair Escrow?
Before a HUD home is listed, it is inspected and appraised. Any issues regarding the condition of the home are identified and a value is determined for the list price of the house and the estimated repairs. The Repair Escrow is the result of this inspection. When searching for an available HUD home property on the www.HUDHomeStore.com website, the Repair Escrow (if applicable) will be reflected on the property detail page. (See sample below.)
Additional information and a breakdown of the Repair Escrow can be found by clicking on the "Addendums" tab. In the example above, monies are estimated for the replacement of rotting and missing siding, repair of copper piping at the furnace and electrical re-wiring. Common repairs include: repairing/replacing drywall, repair/replace plumbing, mold mitigation, repair/replace bathroom tile and HVAC repairs/replacement.
Please note: HUD does not pay the repair escrow. This is a cost to the potential buyer that will be included in their new loan. It must be paid in order to purchase the home and make the appropriate repairs. It is not included in the purchase price.
(HUD is the U.S. Department of Housing and Urban Development.)
If you are interested in learning more about HUD Homes or scheduling a showing of a HUD Home in the Metro Denver area, please contact The Foerster Team at (720) 530-5553.
Watch this blog site for available HUD Homes in Douglas County and the surrounding areas and additional information regarding HUD Home programs and purchasing HUD Homes.