HUD not dewinterizing?

we are definately in a non traditional market, where we all are doing things we wouldnt normally do to get these deals done

Depending on the servicing entity for the HUD home you have several choices.  PEMCO or Hometelos are the 2 entities in Colorado.  I typically do 30% of my transactions with HUD homes.  With each home you must go through the Assest management comany called AMS.   This company will give you a link to their website with a PDF form to be filled out by the buyers.  This is not on you.  The AMS even state a licensed plumber must be present at de-winterization.  Also the upfront charge is $150 and it is NON-refundable.  This charge is collected so when your 72 hour window is up to do the inspection, their winterization company comes back out and re-winterizes the home with the buyers pre-paid $150.  The buyers then have to suspend or turn off the utilities until they close. 

This new system, after we lost McBreo, Conner and Boals from last year, is a racket and a scam.  Forcing buyers to pay upfront to have the home de and re-winterized only to learn the homes are sold as is, where is?  I can't tell buyers to buy the home and not get an inspection, that isn't ethical on my part.  But honestly  when the home is "sold as is" What are the buyers gaining by doing this before they purchase?

You know that all HUD homes come with a Property condition report?  The plumbing is pressure checked, the furnace is run and tested for leaks, the water heater is tested, and the roof is walked on and inspected.  Do your buyers know if there is money escrowed for repairs?  They can use this money to fix items the property condition report has identifed.

Oh, and to address your original comment, if the buyers aren't doing the de-winterizing, it isn't because HUD refused, it is because they don't know they are supposed to do it....

Eric asked "What are the buyers gaining by doing this before they purchase?"  I have to say that they are getting a professional of their choosing to do a complete inspection at which they can be present and ask questions at the time of the inspection.  When they get the report, they can make an informed decision as to whether or not the property is in acceptable condition.  With a good inspection a buyer will know exactly (as close as one can get) what to expect from the property.  A buyer cannot place their trust into an "inspection" done with no reports or pictures.  How do they know that the property was inspected properly?  This comes from personal experience.  I placed an offer on a HUD home as-is.  They say it was inspected, but they don't have any reports from the inspectors.  The home was built in 2005 so it looks like its in good condition, but I will not know for sure until I can get a professional to look at it.  I will gladly pay a little extra to save a lot of headache and expense down the road. Just because it is As-is doesn't mean I agree to pay for thousands of dollars in repair.