Glad to help
I realize times have gotten tougher in the Mortgage business. Use to be that with a bankrutcy due to medical you could still be considered for a loan. I would talk to a local lender and have them give you the honest answer. If you need some names please let me know and I'd be happy to help.
As far as HUD homes, you can search for them yourself but you do need a realtor to make an offer. You will need a pre approval letter from your lender and earnest money before you make an offer. Most homes are as is, some have money allowed for carpet and such. You just need to talk to a lender first.
Hope this helps. Give me a call anytime. 404-312-3357
HUD foreclosures are homes that had FHA financing which were foreclosed. You still have to obtain financing in order to purchase a HUD home. I believe you are looking a 2 to 3 years from your discharge to obtain a loan these days.