If you submit an offer on a HUD home that doesnt meet their minimum net to HUD they should send a "counter offer" email that tells you what the minimum net to HUD needs to be.

  $2500 debt owed offer $750-900.00 to settle (They will more than likely accept or rebuttal with counter offer). 

The seller did not accept the counter offer I made at $365k, so I have walked away from the deal.  

There are two ways to do it the correct way:1) Create Addendum that says price has been changed to ...2) Use counteroffer form to modify the price Above needs to be signed by both parties and delivered to escrow together with the original Purchase Agreement.

For example if they accept an offer with an escalation clause rather than issuing multiple counter offers, or simply allowing buyers to continue bidding against each other for as many rounds as possible, they may be leaving money on the table.

Had I been introduced to BP and more information ahead of time, I would have had better opportunity to negotiate as he took my very first offer without a counteroffer (meaning I offered too high)Also I would have checked ALL lending options.

Here are the results (forgot to record 1st, but lost it to a higher than asking bid):Asking - Our Bid - Final price$620k - $622 - Cash offer for $620 and no contingencies won$610 - $620 - Last we heard, it was at $670 (cash)$630 - $636 - Sent multiple counter offers for $700$640 - $645 - Last we heard it was at $770!!

@Brian Stutzman That does seem out of the ordinary but if you need I can refer you to a real estate attorney I have been using for years, or if you need a realtor to send a counter offer, I can help you there as well.

i'll be the odd ball and say, i would send the counter offer. he isnt going to walk away because you countered for less 2.4k less. 

Let me clarify on the situation a little bit as my agent just sent me the seller's signed counteroffer and I slightly misunderstood what he explained to me:The seller's counteroffer was simply that the initial walkthrough and inspection should be completed on the same day.