Columbus HUD Homes

Some of the benefits of buying Columbus HUD homes is the fact that HUD publishes a property condition report (PCR) and provides an FHA appraisal for their HUD listings. But, here’s the question: Should you trust these Reports?

Recently, I was really surprised about the poor quality of some of the PCR reports. Here are 2 examples:

The gigantic home I featured in my last post on 5090 Shellbark Ct in Groveport is listed as insurable (IN) by HUD. Per definition, insurable means that the property is in good enough condition to be a collateral for the “regular” FHA 203(b) loan. No repairs needed. However, if you take a closer look at the 18 pictures on our property website, you will see that there is no kitchen. It is missing. No FHA lender will approve a loan on this deal without a repair escrow.

Here’s an example of another home whose property condition report was completely wrong – until my buyer canceled the contract and HUD changed the report before it was relisted. The free standing condo on 4258 Shortleaf Ln in Grove City was originally listed as insurable with a repair escrow (IE) for plumbing repairs. However, the PCR stated in several places that the plumbing passed the pressure test and held air. The report also indicated that the electric panel was in the basement – which definitely can’t be the case, since the house is on a slab and does not have a basement.

You may wonder why I discovered that these property condition reports were wrong?

First of all, I preview many homes for you, the readers of this blog. I actually visit these HUD homes personally and try to see what’s wrong with them. I certainly understand that a house on a slab can’t have the breaker box in the basement?!

Secondly, I also represent many HUD home buyers. More than once did an underwriter request a repair escrow for homes that HUD rated as insurable (IN) with no repairs needed. I also know that a HUD home rated as insurable needs to have a space to prepare food.

So, here’s the bottom line: definitely read the reports provided by HUD, since they will give you an indication of the general condition of the property. Call me, especially if you are looking at a HUD home we featured on this blog. Even if it was not featured on this blog, I may have been inside it to show it to one of my customers.

Hire a professional property inspector. By watching an inspection you will not only learn a lot about the condition of the HUD house, but also get useful tips about how to maintain the different systems of your home.

By the way, I will attend your home inspection, too, if I represent you as a buyer. This gives us an extra edge when it comes to getting a final approval from the bank’s underwriter. I was able to save numerous contracts that would not have been approved otherwise by the lender.

Give me a call and learn more about the ins and outs of inspecting a HUD property.

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