Housing:

Single Family Appraisal and Disposal Practices of the Department of Housing and Urban Development

CED-77-90: Published: Jun 23, 1977. Publicly Released: Oct 27, 1983.

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

The purchasers of a home that had been foreclosed and put up for bid at $37,500 by the Federal Housing Administration (FHA) alleged that they were not told of the agency's appraisal price of the property.

A review of the case showed that the appropriate requirements were met and that the FHA had acted reasonably in the disposal of the property. The purchasers were, in fact, told the property valuation by virtue of the clause (d) of the Conditions of Sale in the Standard Retail Sales Contract. Moreover, even if clause (d) failed to inform them, a relevant Supreme Court decision concerning appraisal notification held that notification was primarily to protect the Government and its insurance funds, and only incidentally to benefit purchasers; the United States was not liable for misrepresentation to purchasers who relied on an FHA appraisal and paid above market value. FHA failure to furnish the parties with a written appraisal thus appeared legally inconsequential and successful court action by them appeared doubtful.

Mar 31, 2014

Mar 27, 2014

Mar 18, 2014

Feb 6, 2014

Jan 30, 2014

Jan 28, 2014

Oct 22, 2013

Aug 8, 2013

Jul 31, 2013

Looking for more? Browse all our products here