Closing agent says my title is defective

[Mike Nelson]

I bought a HUD home to flip awhile back that was foreclosed on a deceased person. My closing from HUD went fine and I was issued a policy. I am now in the process of selling and the new Title Companies underwriters are saying the foreclosure "was not done properly" and needs to be re-foreclosed.... are you kidding me? They state because there is no documentation in the public record for the attorney to find heirs or interests. How did my first title company miss this? How long should my first title company take in researching this and getting back to me? Does HUD hire fly by night attorneys to do their foreclosures. I tried contacting the Closing attorney listed in the public records through phone and email, and as you would expect, he is not getting back to me. However, I researced him, and he appears to work for a reputable Law Firm that deals specifically in foreclosures. There was also probate documents not available online in public records, and you have to visit the clerks office to verify them. Possibly the underwriter was lazy? I dont know, this just seems like underwriter ridiculousness at its finest.. anyone dealt with this?