As a home builder and realtor with over 20 years experience (and who is also one of this area's' top HUD listing and selling agents,) I can tell you that mold problems are not always as bad as they are made out to be by untrained people. A properly trained and certified inspector (which HUD does NOT always use) can give you an actual assessment of the problem.
If you contact me with the HUD case number or address I can research the peoperty and see if it has been pulled for re-evaluation. I would doubt that HUD returned it to the bank?
Busy B Realty