Wholesale mortgage banker here. You’re thinking of the HUD1, Cherry. When he says HUD home, I think he means a house that was foreclosed on and ended up in the hands of the Department of Housings and Urban Development (HUD). Correct me if I’m wrong.
That would totally depend on the lender and the type of loan.
I would start by talking to your Loan Officer about this and pushing up the chain of command to find out what exactly went wrong and how you can fix it.
Other than that I really don’t have any advice on the situation. It sounds like you’ve taken some bad lumps lately, Johnny. Trust me when I say I know how you feel; it sucks. Right now I’m about to spend every penny of my inheritence from my grandmother to get my car fixed, which got hit while it was parked and I was sound asleep in bed (details here.) All I can say is keep on truckin’ and maybe the first one of us to come out of this funk can buy the other one a beer 
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