Closing Date Extensions | ||
|---|---|---|
Welcome to buying a HUD home.
This is a brief overview of the HUD buying process. There are a few things you need to know up front about buying a HUD home, since the procedures may be different than those used in buying other types of homes. HUD however, has made the procedure as efficient and convenient as possible. Here are some things you should know:
Closings are 45 days Oregon
After your contract has been received correctly, it will be signed by HMBI on behalf of HUD and returned to your agent along with a contract acceptance letter. For Alaska, Idaho, Oregon and Washington, North Carolina, South Carolina, Virginia and West Virginia this letter will give you up to 45 days to close. Once you are ready to close, you and your agent must schedule the date with the closing agent indicated on the letter, who also receives a copy of your contract. HMBI does not set the closing date; it is up to you. If you use the HUD closing agent, HUD pays their fees. You may use your own agent, but then you must pay the fees. If you use your own closing agent, they must work with the HUD agent on some legal items.
Extensions of time
ALL SALES ARE EXPECTED TO CLOSE WITHIN THE APPLICABLE TIME FRAME IDENTIFIED ON LINE 9 OF THE SALES CONTRACT.
Closing Extension Request: If the closing is not expected to occur on the specified date on line 9 of the HUD Sales Contract 9548, the Broker should contact HUD's Closing Agent at least two weeks prior to that date to request an extension. HMBI, as HUD's Representative, may grant an extension of closing time and, if approved, each extension will be for a period of fifteen (15) days:
• Submit the Extension Request Form and all the required supporting documents to HUD's Closing Agent prior to the expiration of the sales contract.
• Documentation submitted with the extension request must establish that a closing can reasonably be expected to occur within the extension period.
• The extension request must be accompanied by a cashier's check, money order or other certified funds in the appropriate amount and made payable to HUD. The fee is based on the Contract Sales Price:
*Contract Sales Price equal to or less than $25,000 Extension fee is $10 per day ($150)
*Contract Sales Price of $25,001 to $50,000 Extension fee is $15 per day ($225)
*Contract Sales Price over $50,000 Extension fee is $25 per day ($375)
• The initial 15-day extension will be provided for owner occupant purchasers, at no cost, if documentation is provided indicating that proper and timely loan application was made, that the delayed closing is not the fault of the purchaser and that mortgage approval is imminent.
• The extension fee will be retained by HUD. In the event that the purchaser closes prior to the end of the extension period, the unused, prorated portion of the extension fee will be credited to the amount due at closing.
• The approval of an extension does not obligate HMBI, as HUD's Representative, to grant future extensions.
Call Terry at 517-5960, Cyndy at 729-8381 or email to schedule a showing or request additional information.
