From everything that I have been able to find, HUD does not forgive or back down, my mortgage company so far appears to be unwilling to back off the price, I doubt the buyer is willing to come up on their offer and I feel I am faced with 3 options: 1) I let the sale proceed and end up with no money, owing money, and no where to go, 2) The buyer proceeds to sue for the property because I signed a commitment to sell, I will end up with no way to relocate my family and nowhere to go, or 3) the home goes to auction and again, no way to relocate and nowhere to go.

The problem many face is being outbid by a few entrenched players who dominate local auctions or others willing to pay too much.

However, since you listed each property under separate activities, you may face limitations.

.), they should be notifying you and you may have to face any repercussions (penalties, pauses on your permits, etc.) 

3) Are you going to face fines for fair housing violations?

Right now I rent on a room to room basis at my properties and because of the high turnover I was thinking of implementing a very thorough system I thought of with almost no face to face interaction until the very final signing. 

Tattooing this to my face

I need to put HVAC in the building (at least the bare minimum) and I need to repair the roof. 

If you're using your real estate license as a means to make the same/more as your W2, then you will face an uphill battle - unless you work extremely hard. 

None of the sites, including AirDNA which I like and use, are to be trusted at face value.