HUD Right of Refusal

3 Replies

If putting a bid for an owner-occupied HUD home, will I still have a right of refusal if once the bid is accepted my home inspector does not like what he finds?

Thanks!

You have a 15 day inspection period after HUD signs the docs. As an owner occupant you can get your earnest money back if you find something that was not preciously disclosed on the PCR. That report can be found under addendums on the www.hudhomestore.com

Mark Ferguson, http://Investfourmore.com | [email protected] | http://investfourmore.com | CO Agent # IA40029358 | Podcast Guest on Show #68

Thanks Andrew and Mark!

Mark, your response leads me to believe that backing out of the purchase agreement during the option period for any reason (other than finding something not disclosed on the PCR) will forfeit the earnest money. Is that correct? With a regular home in the past I just forfeited a $100 fee and I received my earnest money back as a result of backing out during the option period. Thanks for the clarification.

I'm trying to find this information on the HUD website but have been unsuccessful. Any guidance there would be much appreciated.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you