I met with a hud certified agent yesterday to view the inside of a hud property I was interested in. He informed me that hud doesn't give investors an inspection period. Has anybody else ever heard of that? I looked over the hud addendums for investors and I didn't see it anywhere in their contacts. If anyone could chime in I would appreciate it thanks.
HUD does allow inspections as long as they are in your contract. However, HUD will NOT refund your earnest money unlike most contracts where you get your deposit back as long as you terminate inside of the inspection period.
HUD does allow investors to put inspection contingencies in the contract. Bill said in his post that HUD will NOT allow refund of earnest money deposit, I am not 100% sure about that. I am not an expert on HUD properties, but I always thought that as long as you have contingencies in your contract, you can walk away from the deal with your EMD refunded. May be someone who is more experienced can chime in on the topic.
I would also be interested to find out the answer to this question. I have been looking at HUD properties as well.
All I know is that we put a HUD house under contract, then learned we needed foundation repair, cancelled the contract. My agent at the time was told HUD earnest money is never refundable to INVESTORS, owner occupants can get refunds.
Ok guys thanks for the replies they've been very helpful.
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