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Offer accepted on HUD home yesterday. Is it too late to cancel the accepted offer?

After a year of searching in upstate ny, our offer was accepted on a hud home yesterday. It needs a lot of work. Today, I spoke with my mother about it. Then she showed me the house of our dreams on a realtor web site. It's a short sale. It's the same price as the foreclosure, it does not need a lot of work, and it's perfect for us. The problem is that I had already accepted the offer and made appointments to meet with everyone for next week. I have appointments to meet with the lawyer on Monday & meet with the inspector, contractor and loan officer on Thursday at the house. Is it too late to change my mind? Should I just go through with the inspection and see how serious the repairs are? Would it be too late to back out even then?

Public Comments

1. No, it's not too late to back out. Call everybody on Monday morning and tell them your circumstances have changed and you won't be purchasing that house anymore. You can still back out of the deal, you haven't signed the purchase contract, you only signed an offer. If you put any earnest money down, you MAY lose it, but that's not a given; ask the realtor to get your money back if possible. Don't let this go too far, don't do an inspection on a property you're not going to purchase because you'll be wasting everyone's time and money. I was in a similar situation last year: I made an offer on a HUD home, the offer was accepted and then I changed my mind about the house. I rescinded my offer and was able to get my money back.
2. Call the real estate agent involved and tell him or her you want to withdraw your offer. Just an observation I wonder if you can really get financing on a HUD house in bad condition. Many lenders will not lend money if the house is not in good condition. Have you spoken to your lender about this? You really like to do difficult things, don't you? First of all purchase a HUD house and actually win the bid! Unheard of!! Now you want to go for a short sale! Wow! You really enjoy punishment, I guess. By the way if the lender won't lend or if the inspector finds a lot of stuff that is in bad condition either of these will allow you to withdraw your offer. Why don't you have a real estate buyer's agent help you find a good house at a great price in decent condition? It will be a lot better experience and you'll get a fantastic house!
3. Unless you can use a contingency in the contract, you are buying this house. Accepted is accepted. Sounds like a classic case of buyer's remorse.
4. usually, money binds the contract. If no money has changed hands, they probably can not force you to buy the house. Are you sure that you can get the other house? Do you have a lawyer friend that deals in real estate? I found out years ago that I would rather have a lawyer close a sale rather than a title co. It might cost a little more but the lawyer represents you and it is a long term investment.