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Earnest Money Deposit Disposition if Investor Cancels the Sale:

  • 100% of the EMD is forfeited, regardless of reason

  • Can inspect during the inspection period, but it doesn’t give them the right to get the EMD back if canceling during the 15 days​


  1. ;HUD cancels the sale​

  2. FHA Insured Sales (IN) or (IE) – will forfeit 50% if determined by HUD or Underwriter to be unacceptable buyer. Will forfeit entire EMD for any other reason.​


  • Extended Period is open to investors

  • The first 30 days of a property marked IN or IE are for owner occupants, HUD approved nonprofits, and government agencies.  If no bids are accepted by HUD that meets their minimum net, the property will be opened up to investors on the 31st day.

  • The first 5 days of a property marked UI (uninsured) are a sealed bidding period for owner occupants, HUD approved nonprofits, and govt agencies. Bids are collected for 5 days, and on the 6th day HUD reviews them.  If no bid is accepted by HUD, the property is opened up to investors in the Extended bid period.

Closing Costs and Commissions

  • Closing Costs - HUD will not pay closing costs for investors.

  • Commission - if the investor is also the selling agent representing himself, HUD will not pay the selling agent commission.

"Every home is...

   Someone's perfect pearl."

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