There are specific forms associated with HUD homes and their inspections. A HUD home is a property acquired by HUD (U.S. Department of Housing and Urban Development) as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner, offers it for sale and then sells it at market value as quickly as possible. HUD properties are sold as-is with no warranty and no repairs should be performed on a property until after the new owner has taken possession. It is critical when purchasing a home sold by HUD to get an A-Pro Inspection as soon as possible for several reasons:
(1) The inspection may uncover a condition that makes the buyer choose to walk away from the deal and just forfeit the earnest money. A foreclosure is highly likely to have had maintenance ignored and the home to be neglected even abused.
(2) The home is vacant and the time to actual closing is often extended in a HUD transaction, any new damage occurring before closing has a realistic chance of being covered by HUD if well documented.