OfflineOk so I got a HUD house under contract and now I can't sell it on the retail market. I got it a little high but it was completely redone on the inside. I want to cancel the contract and get my escrow back anyone had any problems on this. My real estate agent says I must have a inspection done to cancel it.
Any other ideas out there?
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Just do the inspection yourself, and after you can simply say as a result of the inspection you're canceling the contract. As long as you're within the inspection contingency date, you shouldn’t have a problem. I bought a HUD home in the past and did the inspection myself.
Hope that helps,
- Tom
Always good advice on here!
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HUD has guidelines, and after a bid is accepted, you have 15 days to cancel; you can have 'your business partner' do an inspection and say that it is not to his satisfaction.
Valerie
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Very difficult for an investor to get a refund of EMD from HUD.
"Investor Purchasers
Uninsured Sales - The purchaser will forfeit 100% of the earnest money deposit for failure to close, regardless of reason.
•
Insured Sales - The purchaser will forfeit 50% of the earnest money deposit for failure to close if purchaser is determined by HUD or Direct Endorsement underwriter to be an unacceptable buyer. The purchaser will forfeit 100%
of earnest money deposit if sale fails to close for any other reason."
http://www.hudpemco.com/wp-documents/forms/2s_forms/PEMCO%20OO%20SALES%2...
Also check out the stipulations for the 15 day inspection period.
The other people on here don't understand HUD needs some paperwork or they will not cancel the contract.
I had a 15 day inspection period but they are saying since they have nothing in writing from a certified person they won't refund my ernest money.
Agreed REPMGreen that people need to understand the paperwork they're signing with HUD purchases. For me personally, I did the inspection myself but was satisfied and did not cancel the contract.
Anyone entering into HUD or REO contracts should clearly understand everything they are signing.
Good luck!
- Tom