OK. This is a scenario I have not come across. Working a HUD file with negotiator. Offer submitted with HUD1 and all necessary docs. Appraisal completed. Counter from investor. Buyer accepts counter. Ready to go to closing. File gets closed abruptly because of "timely response" submitting documents over the weekend including a holiday. File is reopened and now prior offer is recountered by investor $10k more ($95k deal). When i inquire about "WHY" I am told by the negotiator

"HUD no longer owns the loan. It is no longer FHA insured. It will be negotiated as conventional non delegated. All the investor is asking for is the purchase contract, listing agreement and HUD-1". Is this a common practice? We now have a HUD appraisal on the property that sticks with the property for what seems like a lifetime for $10k less that the investor wants as a net. That will affect any buyer looking for FHA financing. Did i miss something somewhere? can it go from FHA guarantee to non? PLEASE ADVISE....