How long is the inspection period on a HUD home?

Asked by Leslie H. Kelly, Phoenix, AZ Tue Sep 18, 2012

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Jennie Miller…, Agent, Phoenix, AZ
Tue Sep 18, 2012
HUD has a very specific process that the buyer and buyer's agent must follow on a HUD home regarding the inspection period. There are multiple addendums, utility authorization forms, and an approval process that initially takes place during the contract execution phase of the process. Once HUD executes the purchase contract, the buyer and buyer's agent then can submit a request form to turn on the utilities. The utilities are turned on at the buyer's expense and can only be done once a third party company issues the approval to the buyer's agent. This company is not HUD--it is a whole different firm. The buyer will want to have the power, water, and gas turned on so that a home inspector can complete a thorough inspection of the home so that you are aware of the condition of the home prior to purchasing it. In the experiences that I have had with clients that have purchased HUD homes, the timeline from the bid acceptance email that comes in the buyers agent until the time that the utilities are on for inspections, requires several steps that must be accurately timed or your risk HUD cancelling the transaction. Once the utilities are are on, the inspections have to be completed. The inspection period is 15 days following contract execution and having an agent with experience selling HUD homes will prove as invaluable as you work through the inspection process and closing with the title company. If you are looking for an agent to help you acquire a HUD home, I would certainly be happy to help. You can click on my photo on the left and see extensive recommendations from my clients. Feel free to use my website to search the Multiple Listing Service for HUD owned homes that are listed for sale. Looking forward to hearing from you soon!
1 vote
Stephanie We…, Agent, Gilbert, AZ
Wed Sep 19, 2012
For owner occupants, 15 days. Investors may inspect the property but will forfeit the entire earnest money deposit regardless of the inspection results. You may review the sample contract online at and click on the package that applies under "Contract Packages". Please note you cannot submit an offer to HUD directly and must go through an agent.
0 votes
Mike Cave, Agent, Glendale, AZ
Tue Sep 18, 2012
Hi Leslie,

Its 15 days but earnest is hard for investor buyers from day 1.

Even owner occupants will lose earnest if they choose to cancel within inspection unless a major issue was discovered not disclosed on the PCR OR some special circumstances like death and illness of the buyer. I highly recommend you take a HUD training and view the HUD broker handbook. Best of lick.
0 votes
Thanks for your feedback!
Flag Tue Sep 18, 2012
Craig Frooni…, Agent, Glendale, AZ
Tue Sep 18, 2012
Hi Leslie,
The HUD transaction is a very different process and I wouldn't take the first one on alone. You can take a class or look for another agent in your brokerage that has experience to partner with, if you are the selling agent, look at having a co-selling agent to help you get the transaction done.
0 votes
Doug McVinua, Agent, Gilbert, AZ
Tue Sep 18, 2012

I would recommend you speak to your Broker or attend a HUD training class so you can become more knowledgeable with HUD transactions.

The HUD training class's are a great start.
0 votes
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