Problems closing on a HUD home?
How does a HUD closing work? Does the title company our lender uses closes the loan? Or does the agent from HUD have to be at the closing? Who comes to the closing of a HUD home? Would it be our realtor, lender, us(buyer)?
- SlumlordLv 71 decade agoFavorite Answer
The closing is done by whoever you specify in the contract, but if you use the HUD closing agent then HUD will pay their closing fee and quite frankly if you don't use their closing agent they may whine about how you should have used their agent (I'd say like 90% or more HUD closings use the HUD closing agent). Though HUD will close with an agent you choose if you make them. On HUD's behalf, they seem to want you to use their agent as their agents work closely with them and are pro's at closing these types of deals, use an agent who hasn't done these and they may mess stuff up - so it really is also in your interest to use their closing agent.
At the closing the buyers (you guys) will need to be there and your agent will probably want to be there more or less to explain stuff and "hold your hands" through the process (though they don't need to be). That's it, nobody from HUD will be there, and though the bank could choose to have someone there they almost certainly won't bother, though if you use a mortgage broker they might come, more or less as a ploy to say "see what a great mortgage broker I am" - they don't need to be there either.
You typically close on your own with the HUD designated closing agent (or whoever you choose to close it if you did designate someone in the contract) and then HUD signs all the closing documents later.
I've closed lots of these and never really had a problem after the fact (like the closing agent forgot something and HUD wouldn't close the sale) but, as mentioned, since HUD won't be there thats another good reason to use their closing agent (HUD closings are a bit different but if you use their closing agent they have probably closed literally 1000's of these so they know the process inside and out).
- 4 years ago
Without knowing the full history its hard to give complete answers, however it appears from what you are saying that HUD defaulted on their sales contract to you by not closing. Hud typically uses Realtors to list and sell the properties as well as to represent them, while its possible, it is difficult to get a-hold of anyone at HUD to have a full discussion on the matter. However, most Realtors have a broker who they answer to. I would start by contacting the broker and discussing the matter with him or her. If you still get nowhere contact HUD to file a complaint about the Realtor. You can also file a complaint against the Realtor with the state real estate division. this usually catches the attention of the Realtor who will usually work harder on resolving the matter. The second thing I would do is spend some time reviewing the purchase contract. It usually outlines what your remedies are for defaults of the agreement. if it has no remedies outlined i think you should follow your fathers advise and get a real estate attorney involved, but make sure you have a strong case as you could be stuck paying attorney fees without any benefit depending on the situation.
- dog maLv 71 decade ago
We closed on a HUD house last year. HUD required that we use their title agency, which was 2 hours away from us! But since they took their time getting everything done (we were paying cash and were waiting on them forever), the title company sent someone to our house to sign and notarize.
- OldmanseaLv 61 decade ago
Depending on where you live any one of the people you mentioned could help you close. don't worry the details are always spelled out way before your deal goes through.