Columbus HUD Homes

We explained HUD’s property inspection report in an earlier post. You may have seen that in addition to the condition report, some Columbus HUD homes have been inspected for lead based paint and a Lead Paint Disclosure (LBP) Report is available.

So, which Columbus houses DO get inspected? Each HUD house built before 1959 gets a LBP inspection and the results are disclosed in a LBP Addendum posted with the listing on our website. This is one of the addenda that must be signed and included in your complete and correct Contract Package.

Each Columbus HUD house built between 1960 and 1978 will have a LBP inspection report ordered only if the buyer chooses FHA financing. Disclosure of LBP conditions will be forthcoming usually within 2 weeks.

In certain cases HUD is required by law to mitigate or stabilize lead-based paint prior to closing. This will most likely delay the closing of the transaction. But buyers do not pay any extension fees. HUD will obtain a LBP Clearance Certificate and provide it to the Buyers. This requirement applies when the following conditions occur:

• The house was built prior to 1960.
• Lead based paint is present in unstable condition.
• The house is sold to Owner-Occupant Buyers.
• The Buyers are using FHA 203b financing.

If the Buyers are using Columbus Loans with FHA 203k financing, the renovations must include mitigation or stabilization of the LBP, and HUD will credit to the Buyers a certain amount toward the costs. See the listing for the specific amount. Maximum amount of the credit from HUD is 10% of sales price.

So, what should you do, if there is lead based paint in a Columbus HUD Home you’d like to buy and you are NOT an owner occupant?

First of all read all details of the LBP report. It shows you exactly on which walls the lead based paint occurred. They also estimate how much the mitigation would cost. You will be surprised to see that the repairs are much less expensive than you may have thought.

Be smart about your purchase. Offer a lower price if lead based paint is present in a house. Do the necessary repairs using the contractors that supplied the estimates to HUD and get a certificate to show that the LBP problem was mitigated. Now you can be confident when you try to sell the house and disclose the LBP mitigation to a potential buyer or tenant.

Thanks for reading our Columbus HUD Homes Blog
Posted by: Susanne Novak, ABR, FIS, GRI 
Columbus Realtors specializing in
HUD Homes, Shortsales, Investment Real Estate
(614) 975-9650

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