This means let the buyer beware that problems may exist and that the fixing of any problems is the buyers responsibility. T here are also additional costs incurred by the buyer in some cases, especially for VA buyers.
Most buyers feel more comfortable having the home inspected before purchasing.
The problem with this theory is that the home is purchased through a bidding system and there is no guarantee that your bid will be the highest. If you are a first time buyer and on a tight budget as far as up front money goes than buying a HUD home would probably not be the way to go.