Just had a curve ball thrown our way today. We had a closing scheduled tomorrow for a HUD property we are buying. We recieved a call from our realtors office this afternoon telling us that the closing had to be rescheduled because we didn’t have our proof of insurance in 4 days prior to closing. We had our insurance and we thought everything was ready, but our lovely mortgage company was not clear that we needed it early. So HEADS UP fellow HUD buyers!! Just thought I would pass this along…
HUD is notorious for being picky about what they want and when they want it, and won’t hesitate to cancel a contract if things aren’t done EXACTLY their way. My last HUD was going smoothly until a few days before our scheduled closing, when I got a call from my agent saying the loan wasn’t going to get funded in time (HUD needs the stuff a week in advance sometimes). My agent TOLD my loan broker this early on, but he dropped the ball. So I had to file an extension, which cost me $375. I hounded my broker for two weeks for reimbursement, since it was HIS fault, and he finally relented.
Ouch. Luckily we figured out that the contract was good through the 13th so we are closing on that day and didn’t have to file for an extension. I wonder if closing on Friday the 13th is a bad thing??? :evil
I’ve bought 7 houses from HUD in the past 15 months. They now require a copy of the HUD-1 (closing statement) 96 hours - 4 business days in advance of closing. Sometimes lenders have a hard time understanding that!
Thanks! Like I said, I’m glad I learned without having to fork out more cash! I read another one of your posts, where are you from?
does anyone have a website that covers all the requirements for buying HUD homes? I dont know to much about HUD homes i heard that you cant resell the property before 90 days im not sure if that’s true. i also heard its hard to find steep discounts.
The property only needs 90 days seasonoing (a little garlic salt and some pepper) if the buyer is conventionally financing.I have bought many From HUD. Thanks for the heads up folks.