HUD home backed out of contract.

[Daniel Miller]

long story short. Made a 22.5k offer on hud home. Est. value 55k. (My first investment property ever) my offer was out bid. The couple who outbid me backed out of home due to inspection reason. Hud emails my broker saying the accept my offer. (A month later)

I go relook at house. Decide to continue with my offer and buy home. Now 30 days later HUD contacts my agent and says they don't even have the title to the house so basically I'm SOL.

1) how does this happen.

2) how can they back out.

3) what should be my next move?