HUD property I'm purchasing has been Vandalized!

[Deano Carroll]

Hi all, Deano from Cincinnati here. I'm in the process of buying our first HUD home, signed the papers and paid a $500 deposit.

THEN the back door was kicked in and all the copper stolen. HUD did not secure the property for three days and who knows what else was damaged.

I've asked for my earnest money BACK and told them that I would like to place a new bid due to the damage...as well as some serious structural damage which my engineer uncovered.

They've refused; consider me in default of contract and are putting it back on the market next week. What should I do?

I'm new at this...and was only trying to save a great old house and our neighborhood. Deano

[Mark Yuschak]

I do a lot of HUD transactions (both as a Realtor and for my personal investing). The one thing I noticed missing is that after the bid has been accepted and you have a ratified contract you can complete the inspection (assuming you requested one). If the property has been damaged when you do inspection you have a right to rescind the contract and request the EMD refund. If you're agent is green, engage the help of his/her broker. It's very common procedure and 9 times out of 10, I see the EMD refunded if the reason for backing out of the contract is truly because the property did not pass inspection.