Hud is soooo confusing (foreclosed, agent, accept, price)

[foxywench]

so im looking to purchase a HUD home...

PRC is all good
property is FHA insured with NO repair excrow according to the PCR.

good right?

visited the property and noticed what looks like...the well pump is missing...
shouldnt this be something on the pcr/repair excrow?

Asset manager says yes it should and since its not...

i figure someone might have stolen the unit after the pcr but am told the jet pumps for this style of well wouldnt be worth the hassel to steal and haul it off...
in which casue it would hav ebeen missing at time of PCR added to repair excrow...is this a correct assumption?!

called the asset manager, he said :make an offer, get an inspection and if it does come back as missing copy us on the report and well submit it for HUD to fix, add money to a repair excrow or adjust price for the issue...

ok...sounds good...

so i go ahead, make my offer, its accepted (this leads to another issue ill touch on in a min...)
reading the contract however it states property is sold as is and no repairs will be made by the seller after contract is signed...

but the apraisal manager (who hud told me to talk to) said that i could submit for repair after contract and inspection...
i cant have the inspection before a contract because i need ot have the utilities turned on first...cant do that without the contract on it...so its not like i can submit this error to hud before the contract and say "fix it if you want my offer"

the ocntract does state that for an fha insured, should the home inspection turn something up the buyer has the right to cancel the contract and recive full earnest money returned...
but i dont WANT to cancel...i just want the issue fixed since its NOT on the repair excrow and because of which FHA wont let me do it as a small escrow allowance... (and assuming it only needs a new pump the house wont qualify for a 203k Rehab as its only a bout a $500 job to replace it IF that...)

so i dont know what to do...
the asset manager was adamant that being the pcr claims fha insured and no repair excorw that hud will at the very minimum make an allowance either in price or a deposit into the excrow to fix the issue...
but according to my contract, hud wont do anything about it other than let me back out...
and my agent (whos consluted 2 other agents who frequently work with hud) have never come across a problem like this...so have no idea how this issue would be handled...
again a problem like a missing well pump SHOULD be on the PCR...

now the other problem is...
Hud wants this contract by tomorrow at 3pm...
heres the issue...
im in ct, my agent and the house is in TN...ok...not a big deal.
offer was accepted *yay* but they didnt accept it untill 3pm yesterday. they say they need it signed and returned to them by 3pm tomorrow...the post office closes at 4pm, and so my agent got the stuff togehter, labeld what i needed to pay particular attention to and sign/date and rushed to the post office to overnight, she got there at 3:48pm...
it didnt arrive at my house untill 4pm today, i have to read it, sign it, get a cashiers check from the bank and get it back to the post office by 3pm to guarentee the deliver by 3pm tomorrow...
the probelm is...i dont own a time machine...it didnt get to me untill 4pm (my post office closes at 4pm). so obviously its not getting there untill the morning of the 19th now...

well after the "deadline" for the contract...
*sigh*

now my agent tells me we "know" there have been no previous bids on this property...
and we also KNOW they accepted my first offer of $2000 under asking (the house is under $30,000)...(which always makes you wonder if you offered too high lol)

so now were not sure...
is it worth me sending all this out, it getting there a day late, but because this isnt exactly a "hopping" property hoping they just wave the lateness...
or
do i call the asset manager first thing in the morning, explain whats going on in terms of getting it there in time and see what he suggests...(ill also re-ask him about the whole repair issue during this time)
or
do i do what my agents collegue suggested...
wait untill they re-list the property (whihc would likely be the 19th) and then resubmit the offer, hope they accept it earlier than 3pm so we can get everything back to them ontime next time...

i worry about this option because as i said, they accepted my offer first time and i worry there going to lock me out of bidding since ive done it once, won and "backed out" or that there going to refuse my orgonal offer this time...ect.

i love this house, and other than the well pump everything looks relitivly livable...alot of cosmetic work needs doing but everything seemed solid, no termite or carpenter ant signs i could see, all the pcr stuff looked good (system held pressure, everything ran normally on genny ect...) good roof, good insulation, it will need new windows within the first 12 months, but everything else looked very cosmetic to my untrained (but diy addicted and expereienced) eye.

i dont want to go through with the contract only to end up loosing the house due to a well pump (which i cant afford the cash upfront to replace myself...)

i figured looking at a fha insured house with a $0 repair excrow the "big" stuff thats easily visible would have been weeded out and i only had to worry about what the inspector might find...

but im 99.99% certain the well pump is not "included" right now

[rjrcm]

Originally Posted by foxywench

...im in ct, my agent and the house is in TN...ok...not a big deal.
offer was accepted *yay* but they didnt accept it untill 3pm yesterday. they say they need it signed and returned to them by 3pm tomorrow...the post office closes at 4pm, and so my agent got the stuff togehter, labeld what i needed to pay particular attention to and sign/date and rushed to the post office to overnight, she got there at 3:48pm...
it didnt arrive at my house untill 4pm today, i have to read it, sign it, get a cashiers check from the bank and get it back to the post office by 3pm to guarentee the deliver by 3pm tomorrow.....

I know this may not help now, but just curious, couldn't you have just faxed back the signed documents and wired the deposit? Lot easier than depending on the post office.

[foxywench]

no they aparently need origional signatures...

i asked the same question
seems both silly and frustrating to me,
even if theyd let me fax it over as a holding place untill the post service can get the origionals to them it would be helpfull...

[CCRESI]

I would write in the remarks section of the contract about the well equipment and per conversation, it is to be fixed prior to closing by seller.
It might differ state to state, but why are you calling the asset mgr and not your Realtor?

[foxywench]

because the realtor doesnt have the answer to these questions, nor do her collegues who have worked hud homes quite a bit in the past.
none of them have ever delt with a long distance transaction like this on a HUD property so never delt with what happens if the mail gets there late...and none of them have ever come across a situation where the PCR/repair excrow info is contradicted by onsite information...
and after talking to HUD they suggested i contact the asset manager as they are that is who takes care of pretty much everything to do wth submitting paperwork, arranging the pcr and such ect...

[chicagojlo]

I don't know about HUD but my Homepath contract says 'sold as-is' and they're still willing to consider our repair/credit requests following inspection.

[Joy333]

I dont deal with HUD alot but deal with foreclosures daily. I NEVER get them an original signature on anything. We always deal with either faxes or scans and emails. I've NEVER heard of them having to have original signature. ???????

Secondly, if it's that great of a deal, can you just fix it after you buy it knowing that it's worth it and that's just a repair you are going to have to make after the closing???? We have alot of theft where I am on the foreclosed houses. People actually go into the house and tear all the copper out of it for scrap. (Yes, they go thru the sheetrock) They steal the outside a/c units, they steal anything they can get their hands on.

Best of luck to you. I do always hear what a pain HUD is. Sorry!!!!!!

[Silverfall]

HUD has specific rules
1) All docs have to be to the asset manager within 2 business days. They have to be signed with blue ink and you need to have a cashier's check or US Postal Money order.
2) HUD does NO repairs to the property. None.Zip. Nada. Don't ask. They WON'T do it.
3) They will credit the repair to the repair escrow. Yes the contracts state as-is but they do realize that things happen to vacant properties. They will credit a repair escrow. There is a form for this. Have your agent go to the asset manager's site and they will see the form right there. I can't remember the name of it, but it is like "Change to Repair Escrow" or something like that. HUD typically responds within 2 days to those requests.
4) There is a form to request that the utilities be turned on and they can be on for 72 hours. Buyer pays the costs to turn them on and off.

HUD is a different beast, but it really isn't bad if you understand their system and why they have the rules they do.

[foxywench]

thanks silver

well i have some good news, i dont know how, but somewhere between mine and my agents bajillion calls to hud and the asset manager they managed to arrange to give us a 24hr extension on the contract deadline...
so i managed to get everything triple checked and sent off on time for it to be there for their new deadline of 3pm tomorrow. *huge deep breath* im reading now that these extensions are very rare, so we must have done something right along the way to be offered this leeway without having to start again from the beginning.
everything is signed in blue ink, i dotted my is and crossed my t's and signed everywhere i was told to sign and print my name and date ect...so im hoping i didnt miss anything

good to know about the repair excrow definatly makes it a little easier, my only worry is if the well pump is missing i cant get a well check and water sample (required for an fha im told) with no working pump...
while the house is a good deal im very low income, the expenses on buying this house will still be alot cheaper than my rent here in ct (including setting asdie a deacent emergency fund each month), but in terms of having the funds to fix even something relitivly cheap like a well pump would eat into the little savings i have set asside for realy emergency and moving funds (its expensive to move over 1000 miles lol)
luckily theres not too much in terms of things that need to be done before i can move in...so even if they refuse to add funds to escrow for it i wont be too upset, BUt what i am worried about is not being able to get a well check and finding out after closing that the water is bad or that i have to find $20,000 to drill a new well because this one is dry and we couldnt test it before closing because of it not having a pump...if it was just a faulty heater or something...i wouldnt be quite so...worried...about it...but a "cheap" missing well pump could hide much more expensive problems and i cant afford a new well lol

but the property is fha insured and im getting an fha loan so im hoping they can figure that out between them and everything can go smoothly from here

quite honestly the worry from this little ordeal has me so flustered that they could tell me the sky is bright green and id probbaly jsut tell them "fine, whatever!" lol.

thansk for all the input guys, any additional info, thoughts ect that might be helpfull on the rest of this journey woudl be greatly apreciated.