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.