Bought a home and HUD had to sign off on it.

[Edward Briley]

Hello All.

Last September I bought a home to flip, and no one can answer this question for me,  Hopefully someone here will know.  

First I paid cash for the home from a major bank that had foreclosed on it.  The loan on the home was from someone that had passed away.   The women that owned it bought the home in 1981, paid it off, and years later got another small mortgage from the bank I bought it from so, I am guessing, so she could pay for a nursing home.

The bank wanted to settle ASAP of course, and that was not a problem, however, for some reason HUD had to sign off on the property before I could close on it. The loan was a direct bank foreclosure, and the government was not involved in the home at all.

The loan the women had, was no more than using the property is collateral to get the loan.

My question is "Why did HUD have to sign off on the home?" It had nothing to do with them. The title company or real estate agent could not even answer this question. It tied up the closing for 3 days waiting on HUD to sign off before the title could be transferred.

I still cannot figure out why?