In your experiences guys, if HUD cancels contract on a deal where you have HOA approval already, etc... any luck in getting your application fee back from HUD since they are the ones who canceled the deal?

Nope. I assume it was probably due to some title issue, which is an automatic, no penalty, out. Let me guess....they failed to name the HOA in the foreclosure, or assigned the mortgage after FJ, nullifying the Safe Harbor provision to only owe the HOA 1%?

Yes, it was a title issue. It is a condo and the HOA had a lien from city for improper disposal of trash. That lien was paid by the HOA but has not been recorded yet so they canceled the deal.

Well, it may be like talking to a rock, but if you're confident the lien is payed or it doesn't concern you, you can tell them you'll take it subject to the lien. Of course, you could also delay the closing until the lien release is recorded, IF this is the real reason.

Usually HuD won't cancel a contract for an issue like this, they will extend closing at no charge to buyer until it is taken care of in my opinion. Unless the buyer wants out. HUD will not reimburse for any expenses.