If work was done on a house that did not meet code, that should have been addressed in the purchaser's inspection report. It is legal to sell a home that has items that do not meet the building code, but the new owner may be required by the city to correct these issues and should plan accordingly when determining the price he or she is willing to pay.
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Great answer, as always, by Mr. Harkess. HUD is indeed allowed to resell the house. Any additions that are contrary to code should have been investigated and corrected prior to sale. The purchasers, depending, on the terms of the contract for ale may be able to ask for HUD to correct the code violations at HUD's expense or might have to correct the problems themselves.
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