What does HUD say?
Over the past year and a half, I’ve had the luxury of speaking with several hundred FHA 203k Consultants. During my conversations, I’ve been surprised to learn there are a whole lota consultants out in the consulting world that are generating their specification of repairs “Ass Backwards” according to
Did I say “Ass Backwards”? Yes, and I certainly don’t mean their donkey is turned around looking the other way. What I mean is that when I’m speaking to consultants around the Country, they are informing me they are utilizing the contractors cost breakdown to generate their specification of repairs! This is a major HUD “NO NO”.
I understand that it may be tempting and that it may save you a bunch of time, however, HUD has made this perfectly clear this is a severe violation as it is contrary to every aspect of what a HUD Consultant is supposed to be doing.
A HUD Consultant has been hired to validate there is enough money in the loan to cover the improvements that are being proposed and to make sure all health and safety issues are being addressed. I understand a construction contract may have already been executed by the time a HUD Consultant has been contracted. However, don’t fall into the trap of using the construction contract to generate your specification of repairs!
Too many times a contractor may have underbid the project and you don’t want to be defending yourself to the home buyer, lender, realtors, or even worse at the local HUD office because you did not follow your own inspection. It’s better to be a “Smart Ass” than a “Horses Ass”! 🙂
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Compliance Inspection Report ( form HUD-92051)
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Question 1: ” I mistakenly marked a draw as complete. I need to reopen that
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