I want to know why so many investor gurus that say you can buy HUD homes without any money never mentioned that when your bid is accepted and you put up earnest money it is nonrefundable?
Am I misinformed by my agent?
You have been misinformed by your agent. The HUD government site states "When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you. "
Your research will largely solve the problem of mistakenly buying a house in a deteriorating condition, but, mostly, you can actually visit the property yourself if you want to be assured of its overall state.
Another thing to look forward to buying HUD homes is the fact that your Real Estate broker can assist you in making your offer and deposit without asking for any fees. Plus, HUD actually will shoulder 5 percent of the closing costs, which could mean thousands of dollars in nice savings for you.