My closing attorney has found that the issue involves an unresolved "Deed of Trust" for $98K involving the Charlotte Housing Authority. He said that HUD could cancel the sale at their discretion despite our signed contract, and that all I would be entitled to is reimbursement of my earnest money.
As a home buyer I am upset as it has already cost me close to $1K in fees for my realtor and mortgage loan application process. Because we have not been able to close I will have to move all my belongings into storage over the next 2 weeeks and find a new apartment to live in until HUD can close on the house.
As a taxpayer I am pissed that HUD would be willing to let this and other houses sit idle and deteriorate at taxpayer expense, despite having interested and capable buyers. The previous owner could not afford the mortgage and abandoned the house. Under the "you can't get blood out of a turnip" principle it is highly unlikely that the Deed of Trust issue will be resolved to anyone's satisfaction.
Question: In the worste case scenario that HUD chooses to renig on our contract, would i have any options such as right of first refusal should they choose to sell the house at a later date? Could I refuse to cancel the contract and just wait them out? Does anyne know of any way put pressure on HUD to get their stuff together?
After watching the GAO fiasco I have this mental image of my paperwork sitting on some beauerocrat's desk ready to go while he/she is sitting in a hot tub in Vegas!
Thanks for letting me vent.
