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Updated almost 11 years ago, 02/13/2014

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1,782
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Michael Seeker
  • Investor
  • Louisville and Memphis, TN
1,019
Votes |
1,782
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No Prorated Rents on HUD???

Michael Seeker
  • Investor
  • Louisville and Memphis, TN
Posted

I'm getting ready to close on a purchase at the end of this week and just found out that there will be no prorated rent added to the HUD. According to the seller, during this cold weather there was a burst pipe in the building, which required them to pay for one tenant to stay in a hotel for two weeks and credit another for the lack of water.

They stated they did not try to collect rent, but if they receive any partial payment for February that they would turn it over.

My initial thoughts are:

1. I really hope everything has been resolved and I won't be dealing with any backlash from this incident post-closing.

2. Is this problem really something that should affect me as the buyer? I.e. if they did not receive rent, then am I the one who is on the hook for it due to the timing of the close?

I've never heard of anything like this happening and wanted to see what kind of ideas or advice all of you BPers might have for me.

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