HUD and the stolen EM

[Robin Grimes]

Well I just paid $1000 for a brief lesson at the university of HUD. I contracted on a HUD home with cracks in the foundation. AFTER sending in the EM and contract I had a foundation company come out to quote repairs. They said that the foundation could not be repaired, it would need to be torn down and the foundation re-poured, because it was to thin to add piers. I cancelled the contract with HUD and of course HUD is keeping my EM.

I tried to argue that HUD had misrepresented the house and that the HUD inspection never mentions the foundation. No luck, so HUD has stolen another investors EM by not allowing inspection after contract. I do understand the term "AS-IS" but HUD represented that they were selling a house, not a lot with a tear down structure.

I will buy again from HUD but I will do ALL my inspections in the 48 window after I win the bid and before I submit the EM. $1000 lesson learned....

[Priscilla Z.]

Nope, HUD doesn't blacklist you. I didn't finish correcting a contract, we just let it go and now we are bidding on the property again.....

BTW, if you happen to make a mistake on sending in the contract the first time, they let you correct it. This will get you more time...to maybe, inspect? LOL....it can't be the buyer's name or the EIN #, but it can be something like the purchase price or the time frame to close. If you chose to not to make the correction, then they return your EM. Just wanted to share my experience :)