As Realtor's we always recommend clients do inspections on any home before they finalize the transaction.
I have an agent that is representing a young couple purchasing their first home. They are looking at taking advantage of the foreclosure market. They are looking at using the FHA program to get into the home with a government assistance.
They have looked at many homes and the agent has reviewed many more than were shown the buyers. They found one of the homes that is a great buy priced thousand below market. They made the bid, the bid was accepted and everyone is all smiles.
It is time to do the inspections at the lenders request. The lender was told by the selling agent representing the property the home had mold. So the lender requested as a condition of the acceptance the home be inspected so the buyer would know the extent of the mold and have no recourse later should the mold become an issue.
The inspector shows up at the appointed time and the back door has been broken open. Not unusual for HUD homes. So the home looked normal and without
any issues other than already disclosed and discovered during pre-bid inspections.
The inspector head downstairs to the lower level while the buyer and the agent are talking in the kitchen area. In a minute or so...the inspector reappears..and asks, "Where's the furnace"? The agent looks at him and says, " what do you mean...in the furnace room"! The inspector informs the agent that someone has taken the furnace. The agent dashes down stairs and sure enough there is a blank spot where the furnace used to occupy.
Now FHA won't fund a loan on a home without a furnace! The seller is sick that great buy might have turned into a big nothing. Someone is stealing money from the pockets of buyers and sellers and many never answer for their crimes.
It is being worked out...but the bottom line is security on the HUD homes is not very good and vacant properties are targets for thieves as well. Make sure you do the inspections on every home you buy...you might be surprised at what is found or hidden.
How do you think this is going to turn out?
Comments(3)