HUD Homepath Financing Questions - Stonewood Ct (Farmington Hills, Farmington: bank owned, real estate)

[spartyrules]

Hi, just would like the collective ideas of everyone here. We have a HUD/Homepath home we are interested in that we know has some serious issues.

The home is at 31566 E Stonewood Ct Farmington Hills, MI. So it's in a cold weather area, and that's part of the issue. It has been empty for well over a year, and it was improperly winterized and has a lot of broken pipes inside the walls, and potentially inside/under the concrete floors. Both potable water, and hot water heat pipes. This will likely cost well over $20,000 to repair.

Additionally it has a collapsed broken concrete garage floor, aging HVAC, older windows and roof, and questionable electric service/wiring. A lot of issues, but we like it.

1) Has anyone ever had any luck with getting HUD/Homepath to make repairs to such a home?

2) If not repairs, will they make selling price reductions?

3) Finally, has anyone ever used the Homepath Renovation financing, and what were your experiences?

Thanks,
JC

[soccerguy4189]

I have a few friends who are real estate agents, so most of what I present here should mirror their experience and knowledge:

HUD homes are always sold "as-is" unless otherwise specified, which leaves you to foot the bill for the renovations. Also, if it is bank owned (which I believe most are), you may or may not be able to talk down the price. Some banks will be more firm than others.

You can find a little more (simplified) info here: How To Buy a HUD Home - Buying HUD Foreclosures

[Bpobill]

Originally Posted by spartyrules

Hi, just would like the collective ideas of everyone here. We have a HUD/Homepath home we are interested in that we know has some serious issues.

The home is at 31566 E Stonewood Ct Farmington Hills, MI. So it's in a cold weather area, and that's part of the issue. It has been empty for well over a year, and it was improperly winterized and has a lot of broken pipes inside the walls, and potentially inside/under the concrete floors. Both potable water, and hot water heat pipes. This will likely cost well over $20,000 to repair.

Additionally it has a collapsed broken concrete garage floor, aging HVAC, older windows and roof, and questionable electric service/wiring. A lot of issues, but we like it.

1) Has anyone ever had any luck with getting HUD/Homepath to make repairs to such a home?

2) If not repairs, will they make selling price reductions?

3) Finally, has anyone ever used the Homepath Renovation financing, and what were your experiences?

Thanks,
JC

HUD is a government owned home. Homepath is a type of loan offered by Fannie Mae on their properties. I looked it up and it's is owned by Fannie Mae and not HUD.

How do you know there are plumbing issues? You should find a loan officer who does Fannie Mae Homepath renovation mortgages and see if you can get any plumbing repairs fixed. I have had buyers use Homepath and it's worked out well. No appraisal fee and the closing costs are a little lower than FHA. You can DM me if you have any more specific questions.

[jkels]

In my experience hud/homepath will not make repairs. HUD however will require you to escrow the money for the repair, I believe homepath as well. In theory their home prices are already 'adjusted' for the repairs needed. Good luck