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socrateaser, Lawyer
Category: Real Estate Law
Satisfied Customers: 38898
Experience:  Attorney and Real Estate broker -- Retired (mostly)
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just purchased a house in indiana from hud for my son in law

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just purchased a house in indiana from hud for my son in law who just is going to get out of the army after four deployments in eight years and the day after closing found from a neighbor that the house had blown up on one side. I then thought meth manufacturing or use had been going on, send for meth test kit and sent samples to the lab and my fears were comfirmed, checked police dept and fire dept for any calls to the residence but there was no records. called hud to discuss this and basically was told we didnt know anything your s.o.l. they played the ignorence card now im stuck trying to figure out what to do thanks jim

Did you purchase the property with an FHA loan, by any chance?
Customer: replied 4 years ago.

no i just paid in cash from my home equity loan

So, to clarify, prior to the explosion, there was never any evidence anywhere that the property owner was manufacturing meth in the home?
Customer: replied 4 years ago.

no nothing, not police or fire dept records either

This seriously sucks (pardon my french). There are cases where HUD knew about meth labs in their properties, and they have been successfully sued for active concealment. But, if no one was aware of the problem, then while you can sue HUD, there's no way to know in advance if you have a chance of winning. And, meanwhile you could spend more on legal fees than you would spend on fixing up the property.

I could see you easily spending $20,000 litigating. So, the question is, how much will it cost to repair the damage to the property, and if you do, can you sell the property without creating a health hazard for the new buyer?

socrateaser and 4 other Real Estate Law Specialists are ready to help you
Customer: replied 4 years ago.

5 to 10 grand after clean up and if im to worried about my daughters health and go to sell it, now im required to diclose the meth issue unlike the goverment who can just play the ignorance card and not get there butt sued off like me if i play the ignorance card and get caught, you gotta love big goverment criminal negligence.

I agree that there is a risk. And, I can't tell you to conveniently forget that you purchased a test kit. You would have to weigh the risks and benefits. The only other option is to spend the money necessary to really clean the property up from any environmental hazard, and then disclose to any potential buyer. That could be a real money loser, but I don't know that you have any other options -- unless you want to take your chances with HUD in court.

I can see how some media attention could get HUD to make an offer to repurchase the property from you. You would probably need a lawyer to negotiate this, because the threat of media attention could be construed as criminal extortion, if you were to try to "do-it-yourself."

Hope this helps.

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