HUD doesn't want to return my earnest money

[Patrick Snyder]

Anyone ever have this happen when you get an accepted offer, do the inspection, and then walk when something is discovered? I'm in the middle of this nonsense as I write this, which the listing broker states is targeted towards investors, and not O/O.

I walked because the 2nd bathroom in the basement is not permitted, and my guess is that it will cost a great deal to bring it to code, which completely throws off the budget, and I consider that a legit reason to walk.

All thoughts, comments, and experiences are welcome.

[Mark Ferguson]

HUD says they consider investors to be savvy and understand if they cancel a contract due to inspection they will lose their earnest money. The earnest money forfeiture doc you signed states the only way investors get their earnest money back is if the loan falls through, they may get half back.