Hud

[OMAR Huff]

I just signed the contract on a foreclosed Hud home in Ulster county NY. Could I have made a contingency on the home having a home inspection? I have only done a drive buy so far. Also having some trouble with the proof of funds. I'm not sure which company to use. I have a buyer lined up but I need to do a walk through first. Any one with Hud experience in the New York area please reach out. Thanks 

[Janette Olano]

Hi Omar,

Since you are wholesaling it, I assume you bid on it as an investor. If this is the case, then there is no inspection period for it and there is no way to get your earnest money back (you can only get your earnest money back if you bid as owner occupant but you can't wholesale the property since you are required to stay at the property for a year). 

However, whenever you win a bid in HUD, you have 48hrs to submit the signed sales contract. In those 2 days, you can visit and inspect the property. If you decide that you don't like it, just don't submit the signed contract and earnest money and HUD will automatically cancel it. The property will either be awarded to an acceptable backup offer or will go back to market.

Source: I mostly find my deals in HUD and I either rehab them myself or wholesale them.

Sorry if my reply is a bit late but in case someone else needs to know...