HUD earnest money, am i screwed?
Hey guys,
So recently I had the winning bid on a hud home, the home was a little out of my budget but I could afford to buy it, I would have just needed to make a loan for the rehab materials using the property as collateral. I was told by many including my estate agent that i'd have no problem doing this, so I went ahead and bid on the home thinking it would be no problem.
After I won the bid i've been trying everywhere to lend 15k against this 60k house I have under contract to buy, but nobody i've tried will lend on it. The one HML I tried said they won't lend less than 60k which would eat 50% of our profits.
Long story short if I cannot line some kind of financing up before I close I would like to know if there is some way I can pull out of the deal without losing my earnest money?
I still want to buy the home, but it just makes no sense to follow through with the purchase expecting things to change if i can't get financing lined up now.
Any help is greatly appreciated