HUD home relist? (agent, price, property, inspection)

[jaynarie]

I am wondering what the reasons could possibly be for this:
A HUD home that went under contract back in May was relisted on Friday (by HUD). It was something I liked back in May but was stuck in an apartment lease. Apt lease is up in 3 weeks- so this is sort of like fate.
But, what reasons could cause a deal to fall through after pending for THREE months? Financing?
My fear- which is why I am asking- is that it has to do with the inspection. Everything is fine on the HUD property listing report and the home is not very old- it was built this decade.

It just seems like such a long time between the offer and relist. I just want to make sure there is nothing I should be aware of before pursuing this. I am calling a HUD registered agent tomorrow.

TIA

[Michelle DeRepentigny]

It could be financing or inspection. Often times, due to the conditionof the house, the property will not qualify for thetype of financing theborrower/buyer can obtain. Saythe house has no floor coverings - it won't go conventional or even insome cases if thestove or dishwasher is missing. Theborrower cannot putthem inbecause they don't have and cannot get permission, so the loanfails.

It takes HUD a long time to get everything cancelled and back online - 3 months is about typical.

[jaynarie]

Thank you. I am relieved to hear that 3 months is the norm!

The house is nice- all kitchen appliances are there, floors are fine (carpet doesn't even need to be replaced) and it even has blinds on all of the windows.

I am prequalified for an FHA loan, so I think I am good on that part!

[nsumner]

Don't rely too much on the property condition report from HUD. There are unlimited reasons why it came back on the market such as financing, inspection or other.

A HUD house we had under contract for a client was vandalized 1 week before closing and lots of damage was done to it. The client still wanted to buy the house but asked HUD for a price reduction. We had quotes for 15-20K in damage. After a month waiting to hear from HUD, they came back and said that they wanted to give him a 3500 credit. So he backed out.

2 months later, the house has been relisted by HUD and they listed it 40K below the original asking price!!!! go figure!!