Help with HUD Are negotiations possible?

[Ivan Wong]

Hello, I am in a particular predicament with buying a HUD home. The house is in escrow, appraisal came in and now we want to LOWER our initial offer to match the appraisal. The appraisal is $8,000 above HUD's asking price, and we are $15,000 above the asking price. HUD says we either pay our initial offer or they put the house back on the market and we can bid again at a lower price. It is risky to put the house back on in this competative market. Is there any way to NEGOTIATE with HUD? This is our first home and HUD home so we were unfamiliar with dealing with them in the beginning. Please help. Thanks! :)