HUD recently announced that it will no longer provide copies of the HUD ordered appraisal to buyers of HUD owned properties that are under contract. That also means that repair escrow items will no longer be identified.
The new HUD requirement requires ALL buyers to have their own appraisals performed.
My guess is that HUD is hedging their bets by allowing more buyers to bid over list price for HUD properties. If a new appraisal can justify a higher price, so much the better for HUD.
Here’s the problem:
Georgia Law requires all sellers to disclose adverse material defects of which they have “actual knowledge.”
In my not so humble opinion, having an appraisal in hand is actual knowledge. If there are adverse material facts contained therein they must be disclosed under Georgia law.
HUD is a seller. Sellers must follow the rules.