Your HUD bid has been accepted and you just received your ratified (executed) contract package from the HUD asset manager. Time to focus on getting your HUD contract closed! Here are some helpful tips to a successful closing!
All purchasers must close on or before forty-five (45) days of the contract acceptance date for normal and cash closings.
203K financed purchases must close within sixty (60) days after contract acceptance.
Extensions – HUD grants 15 day extensions and all extension packages must be in the closing agents office 5 days before the expiration date of the contract or existing extension. The extension must include:
- completed HUD “Request for Extension of Closing Date” form,
- a cashiers check or money order payable to HUD for the the correct amount of the extension fee
- a current bank statement from the buyer if cash or lender letter if financing.
- included documentation should establish that a closing may reasonably be expected to occur within the extension period
The selling agent is responsible for all contract extensions. Incomplete extensions may result in denial of the extension or contract cancellation. The reason for the delay of the closing is not a factor for receiving approval of the extension. With each new extension all new documents are required. HUD will deny extensions if you re-use any previously submitted documents, checks etc.
HUD Funding Requirements – all funds/wires must be received in the closing agent’s account the day of closing. Late wires will result in the closing being rescheduled, no exceptions. HUD will not accept wire confirmations, Fed reference numbers, bank letters, etc. All funds must be in the closing agent’s account dated the same day as the closing. (This is likely going to change with the implementation of the TRIAD closing procedures in late 2015. This post will be updated when new guidelines are issues).
Post Closing Access – Your buyer WILL NOT receive a key at settlement. HUD does not allow buyers to have a key to the property as it is set to a standard HUD key set. Arrangements may be made with the Listing Agent to open the house but this will not provide permanent access as the lockbox will be removed. For the most convenience to your buyer, we strongly recommend the buyer, immediately after closing, meet a locksmith at the home to have it entirely re-keyed. The buyer may change their locks only after a successful closing. They may also choose to have a locksmith re-key the property for them or, if necessary drill the lock out. Once settlement is complete the buyer may access the house how they wish. However, HUD prohibits them from obtaining possession of a HUD key.
