The interesting thing is if you read Section B, it says â€œPurchaser acknowledges responsibility for taking such action as it believes necessary to satisfy itself that the property is in a condition acceptable to it â€¦ and agrees to accept the property in the condition existing as of the date of this contract.â€ But then the very next line says that â€œIt is important to have a home inspection performed on the property in order to identify any possible defects.â€ Soâ€¦ you sign a contract that says you are buying it in its current condition, but then it says to have a home inspection. However, if you find any problems in your inspection, your only choice is to walk away and let them keep your deposit? Did I mention that this is not a buyer friendly contract?
Of course the real question is how strictly does HUD adhere to this contract? I would be surprised if HUD keeps every deposit where a home inspection turned-up problems and the buyer didnâ€™t want to buy. I know Iâ€™ve had buyers back out and Iâ€™m pretty sure HUD never retained any their deposits. I wouldnâ€™t be surprised if they did for investors though. I would be really interested in finding out what the outcome is in this case, and if anyone else has come across similar situations please post it.