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Can hud cancel my contract in error then make me bid again?

Hud thought that the home was a mobile home instead of a modular so they cancelled my contract and tried to reconvey it to the mortgagee. But the mortgagee proved that the home is a modular, so the mortgagee did not have to take the property back. The problem may have started with a botched hud appraisal saying that the home was a mobile home. The contract was cancelled 3 days before closing. Now that hud is accepting the fact that the home is modular they want me to rebid. Do i have to go with the flow and rebid and possibly lose the property, or is their something i can do.
  • August 16 2013 - Houston
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Answers (3)

Have you realtor talk with the asset manager.
They want to sell homes, not take them back.
Sometimes the cancellation email gets sent when they did not mean it.

If you want to buy and are ready to buy and want to move forward, your realtor needs to communicate that with the title company and with HUD.

You may or may not have to rebid.   I've seen them rescind the cancellation.
  • August 26 2013
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Thanks Mike for your response. The earnest money request form was also a contract release form, i did not notice that. I guess i will roll the dice again. 
  • August 17 2013
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...The contract was cancelled 3 days before closing.

I presume you agreed to a mutual rescission of the contract. In that case you probably have no legal ground to undo the decision. The horse has left the barn.
  • August 16 2013
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