I'm not sure what you mean here. Are you talking about the real estate agent actually PURCHASING the property themselves or that they are acting on behalf of a BUYER?
If the agent is submitting the offer for themselves, they most likely would not be submitting an offer for a HUD home with no intention of carrying through. It begs the question "WIFM", What's In it For Me! In other words, there's no pay off in doing all that work with no intention of carrying through.
And, if they are submitting the offer on behalf of a buyer, it's the buyer who dictates what's going in to the offer, not the agent. The agent is working to make a deal stick, so again, there's no incentive there for the agent to mess up acceptance of an offer on purpose. Make sense??
It just isn't true. HOWEVER, there are strategies for purchasing HUD and foreclosed homes that are highly appropriate for situations that are not exclusive to end user purchases. Very often when you read on Trulia a solicitation for "Hardworking real estate agent needed to submit bids for investors" you are witnessing the strategy in place with which a consumer must compete. For HUD homes, the first ten days as exclusively for the purpose of buyers who intend to live in the home to submit a bid. These bids will receive preferential review. It is not a grand conspiracy that stands between a purchase of these homes by a end user, but it is their indecision that proves detrimental.
My advice to you is that if you are interested in purchasing a HUD home, get an experienced agent to help you, and toss in your best offer after carefully looking at the property. Many HUD homes require some work but they can represent some very good values.
If I can help, let me know.