HUD- I want to buy a home that is supposed to convey to HUD but keeps getting extended/appealed … ?

I have been waiting for a house to go to HUD since February of 2011, it is now July. I have been in contact with the mortgage company. The house was supposed to convey to HUD last month, but did not convey due to new damages and an extension request was put into HUD. It was extended for sure until today. I called tho mortgage company and they said it did not convey today but there is an “appeal” in. I am so confused on this process and who is appealing what?? If HUD homes are sold as is why is the house not transferring to HUD. I know there are damages to the home, but what is the appeal about? I need help understanding this process of conveying to HUD and why my property, I want, is not..?
Yes, and I check the HUD site everyday. I am interested in appeals and extensions and anyone who knows about this process…

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