Thanks for everyone's help. Everything that could have gone wrong had gone gone wrong. I had to step in and make calls to the president of the lending bank and the escrow company as the escrow company had a hard time getting the HUD correct. Then after the HUD was finally corrected the REO bank took an extra day or two to approve the HUD because there were back HOA fees due and they were so much that the REO bank had to go thru a special approval process to approve the high amount.
Normally the lending bank would not fund until the HUD was approved but because I called and complained about their service they funded the loan on the Tuesday that the corrected HUD was submitted. When the REO bank didn't decide the next day they pulled the money back out (I didn't know this). When the REO bank finally approved the HUD the lending bank funded the loan within an hour. I was told if they kept the money in the escrow account all those days I would have paid the interest on it.
Good news is we did close 2 days late due to the REO bank taking its time but we were able to move and be out of our apartment on time.
We love the house and we have $75K-$100K in equity due to the great price!