Zillow Advice: Buying a Foreclosure - HUD Contract was accepted, now after inspection ran into big problems http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ Zillow Advice | Zillow Real Estate Just an update - HUD accepted ... http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ Just an update - HUD accepted the cancellation of contract and would not budge on the price. They are either going to move on to the next bidder or put the house back on the market. Hopefully the issues I identified will be disclosed to the next buyer interested in the property so they don't have to play this same game and waste $$$. <br/><br/>Who knows, I might bid on it again at a lower price once it's back on the market and go with a 203k loan to get it liveable again.&nbsp; <br/><br/>Thanks for your insight everyone! Tue, 30 Apr 2013 20:54:00 GMT http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ 2013-04-30T20:54:00Z I'd say the odds are pretty ... http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ I'd say the odds are pretty good that they will adjust the price. &nbsp;They either have to reduce the price for you, sell it someone else cheaper, or have the plumbing fixed themselves. &nbsp;I don't see them fixing the plumbing. &nbsp;<br/><br/>There are different disclosure requirements for sellers who have never occupied the property, like HUD or banks. &nbsp;Buyers assume a lot of risk with foreclosures for that reason.<br/><br/>Hope it works out for you!<br/> Mon, 29 Apr 2013 18:49:00 GMT http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ 2013-04-29T18:49:00Z With lender owned homes, ... http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ With lender owned homes, they will either use an alternative disclosure or opt to not disclose anything as no one from the bank has lived in the house and are therefore not aware or liable for issues. Which is why (as you have discovered) it's a good idea to get an inspection.<br/><br/>Either one of two situations probably occurred with the plumbing. Either the fittings dried out (common on steel pipe plumbing) or the plumbing froze before the home could be winterized. In either situation the plumbing is shot. If it was a freeze issue, you should also look at toilets, radiators, etc as they could be cracked or damaged.<br/><br/>HUD will probably allow for repairs on some issues but may kick out other issues (like the roof) claiming the property is sold 'as is'. They may lower the price or opt to cancel the agreement and sell it as a cash only listing. If the property has lingered on the market for awhile, your strategy probably has a better chance of working.<br/><br/>But I would definitely ask as the house is inhabitable in its current state. Mon, 29 Apr 2013 15:36:00 GMT http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ 2013-04-29T15:36:00Z Your Realtor should be working ... http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ Your Realtor should be working on this with you, contact them and go over your concerns. &nbsp; Mon, 29 Apr 2013 15:33:00 GMT http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ 2013-04-29T15:33:00Z There is a good chance they ... http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ There is a good chance they will if you give them a good estimate from contractors showing the costs. HUD should realize the house will need that no matter who buys it and these were issues they did not know and so could not disclose. In NC they don't even need to disclose anything and maybe that is true for your state too. <br/><br/>Ask HUD to reduce the price and withdraw the offer before the inspection period ends or it will be tougher to back out. You can withdraw the offer and resubmit a lower one to see what they say. Mon, 29 Apr 2013 14:45:00 GMT http://www.zillow.com/advice-thread/HUD-Contract-was-accepted-now-after-inspection-ran-into-big-problems/490015/ 2013-04-29T14:45:00Z