I recently had the extreme pleasure of inspecting yet another HUD home. I jokingly call these homes "diamonds in the rough..." Deferred maintenance issues often abound in these homes, and this particular one was no different.
Our original inspection date had been postponed due to active lead mitigation for which no one had informed me, the client, or their agent until we arrived on site to be greeted with warnings to "Stay Out" and plastic sheets everywhere. 20 minutes of phone calls by the agent determined that we would need to reschedule once clearance testing had been confirmed.
Fast forward 2 months later... my original client was persistent in pursing this home purchase and called to inform me that we were good to go for the inspection now. We agree to a date and the inspection commences. I was not disappointed with my preconceived notion of HUD homes... deferred maintenance did abound and this was going to be a lengthy report...
Among the many plumbing concerns and active leaks, ill-repaired fire damage in the basement and attics, electrical hazards throughout, and over-abundance of water intrusion and wood decay, was this furnace...
A Chrylser Airtemp which haven't been manufactured for at least the last 1/2 century. Beyond it's obvious age was its glaringly dilapidated condition...
Scorch marks and inoperable were the least of it's worries...
The entire blower compartment was rotted beyond repair... 
But my client was not deterred! With assistance from his experienced agent, he pursued the purchase. One would say that "common sense" would scream to run away from this money pit, but everything to him was repairable. Indeed it was!
So where does "common sense" come into play with this story? He was seeking a HUD loan for this HUD home... for which the loan required a functioning heat source. Low and behold, this was the only item from over 100 identified in the report that the client and agent asked for replacement. Seems like a common sense request to me! But not in the eyes of HUD... for they saw it as having already invested too much in lead remediation to consider any further repairs before the sale. But the loan requires a functioning heat source... but the house no longer has one... but the loan demands one... but we won't install one. MADNESS!!!!
Guess what... after all of the wait and aggravation and arguments, the deal fell through because HUD requirements couldn't come to terms with HUD requests. The home remains on the market as a rapidly deteriorating eyesore.
I know this isn't the only example of institutional failure. Simply look at today's headlines for common sense failures of government budget deadlines... That's all I've got to say about that... (credit to Forrest Gump)
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