There was a HUD property in an area I like,I waited for the bidding to be open to investors, submitted a bid, and it was accepted.
The HUD inspection report showed everything working, the house needed a total of $1000 in work to be 'insurable" (able to get a normal mortgage on it)
I use the HUD report since there is no real inspection period on HUD homes.
I still use an inspector, paid $125 to get the utilities turned on (plus what the utilities charge), only to find out someone has gone in, cut all the wiring in the house, not stolen it, just cut it in the attic, where it comes in from the breaker box, and at nearly every drop,my electrician estimated about $5k to fix,so I tell HUD I only want the property if they will negotiate on price,guess what, not only will they not negotiate, which doesn’t surpise me,but they don’t even want to give me my earnest money back.
I have explained that the house is NOT in the condition they reported,but they still want to keep half my earnest money (and I made the mystake of paying my normal $1k in earnest money instead of the $700 required with my bid).
I am so sick of dealing with HUD that I’m going to turn this over to the attorney general’s office, which have told me it is deceptive trade to not properly disclose a major flaw in a property, then try to keep my earnest money.
Beware of HUD houses,this taught me a lesson
andy