Closing

Closing on the purchase of the property you have selected is the final step before you have the keys to your home. Understanding the process will help to remove stress from the event.

Closing Your Sales Contract for HUD-Owned Properties

Once your sales contract is ratified, a copy of the ratified (fully executed) HUD-9548 will be sent as a link, within an email to the email address entered by your Selling Agent at the time you offer was submitted. This email will also be sent to HUD’s designated closing agent for that particular file.   Pay special attention to the procedures for scheduling a home inspection.  Click here for information on the home inspection process.

Extensions of Escrow Due Date:

Time to close is 20 – 30 days for cash sale and 30-45 days for any financing (depending on HOC area).  Have your Selling Agent verify the number of days by calling our toll free number at 1-866-56HOMES.  If the closing date stipulated in the contract cannot be met, you may request an extension of the closing.  Extensions of time to close the sale are at the Seller’s discretion and, if granted, will be under the following guidelines:

  1. The request for extension of closing time will be made in writing to the designated HUD closing agent for processing.  The request must include the cause of delay and that necessary mortgage funding has been obtained or is imminent.  A signed and dated lender letter should be received by HUD’s Closing Agent prior to expiration of the sales contract.
  2. Extensions will be granted for a 15 calendar-day period.  The following are the extension fees due to the Closing Agent at the time of submission of extension request.  These fees must accompany the extension request and be a non-refundable certified or cashier’s check or money order in the full amount of the 15 day extension.  The fee is based on the Contract Sales Price:
    Sales Price Extension Fee
    $25,000 or less $150 ($10.00 per day)
    $25,001 – $50,000    $225 ($15.00 per day)
    Over $50,000 $375 ($25 per day
  3. At the time of closing, the unused extension fees, if any, will be prorated to the purchaser.
  4. The granting of an initial extension period does not obligate the seller to grant additional extensions.
  5. Extension fees will be retained by Seller if a closing does not occur.

Your Selling Agent must coordinate the closing of escrow directly with HUD’s designated Closing Agent.

Closing Transactions (Non HUD-Owned)

Using your state’s promulgated sales contract, you will work with your real estate agent to complete it using the exact terms you submitted when you placed your electronic offer.  Once your contract has been ratified, a copy of the ratified contract and addenda will be emailed to the address entered by your Selling Agent at the time your offer was submitted.  This email will also be sent to the designated closing agent/title company for that particular file.  You will then work directly with your lender and the title company to schedule inspections, respond to any requests for additional information and schedule the closing.