HUD is a different ballgame right now, they aren't playing by the rules anymore.
If it's a reverse mortgage, you absolutely need to be worried.
Watch these two videos Tony made with our Friend Jeff Harrington of Harrington Legal Alliance:
HUD Reverse Mortgage Foreclosure: New Hidden Risk for Investors 1 of 2
HUD Reverse Mortgage Foreclosure: New Hidden Risk for Investors 2 of 2
We are in the process of helping someone with EquityFixers.com that bought a property that was on title free and clear, HUD filed a release a few months before the auction. Then 1 month after this guy purchased at foreclosure auction they filed a "Correction of Satisfaction" with the county, essentially saying "whoops, we didn't mean to file that satisfaction", and demanded payment on their previously satisfied mortgage.
Step 1: Contact attorney for quiet title and do whatever you can to get title insurance as soon as possible. If he would have done it he would have had a solid claim.
As Damon said, they are playing different lately and I would review those video links for more information.
In my personal experience, the last Superior liens I bought, two of them had second mortghages from HUD and since they were named on the law suit, the were cleared. One sold after 95 days with no problem the other after 120 days with no issue at all.
Did you knew of the Final Judgement statements before purchase? Did you run a title search befroe that?
I deal with a lot of foreclosure and havent seen that, I will love to get a copy of the final judgment.
If it gets complicated, definetly contact EquityFixers.com, they would know exactly waht to do.