My buyer is an accpeted bid on a HUD repo and we are in escrow.. I am worried the home won't appraise.. doent anybody know if HUD will lower the price to the appriased value?

If your buyer is going FHA you are required to use the existing FHA appraisal from HUD if it is less than 6 months old.If you are going conventional financing and it under appraises then I think it is on a case by case basis with HUD. The earnest money is refundable if you provide documentation.

HUD had that house appraised before listing it. Chances are that the listed price was at or below the appraised value.

If your client client's contract is for the listed price or below, you should not have to worry about it appraising. That assumes, of course, that the house has not been listed very long (meaning the appraisal is current) and that the condition of the house has not changed significantly.

The short answer is no they wont reduce the price. Earnest money will be refunded and it will go back on the market.