Some Twin Cities home buyers weren't home for the holidays as planned. HUD says that there was a "work stoppage" due to a modification in its management and marketing procedures, which are contracted out to specific closing agents, and that means that in recent weeks closings on some HUD bank-owned listings didn't happen as scheduled. "Due to a recent increase in the demand for closings, HUD has had to modify some of these contracts in order to include additional funding." A local mortgage company was told that closings were being suspended for a minimum of two weeks. Folks who were supposed to close on their mortgage were devastated. Not only had they lined up moving vans, but they were homeless. Worst of all, those borrowers were now facing a higher mortgage interest rate because their rate lock had expired and rates as of last week were higher than when they applied for their mortgage. The mortgage company said that they were willing to buy down the rate, but who's going to compensate them? A HUD spokesperson said "We are still assessing the impact of the stop work order," and that HUD's Homeownership Center Directors are authorized to include a sales allowance paid at closing to the purchaser in situations that resulted in an increase in actual costs to the owner occupants. When we contacted the HUD office in Washington D.C. they said that closings had been reinstated the day before. There are still several unanswered questions. How many people couldn't close? Have those closings been rescheduled? How many borrowers lost their rate lock? And have any of them been reimbursed for expenses associated with not closing?