A few months ago my I had a client that was 3 days away from closing his HUD property when we realized that all the copper was stripped from the property. HUD made the decision to issue a credit to my client versus replacing the plumbing. My client decided to walk from the deal. After filling out the appropriate form and waiting 3 weeks, I was notified by HUD that I could return my clients earnest money.
This was an example of successfully getting Earnest money back from HUD. .
HUD does offer some great deals and opportunities but like any other government entity it can be slow and cumbersome. It is important to work with an experienced Agent who knows the process and can assist you in getting your bid and paperwork correctly submitted to better insure a smooth closing. Changes can be made.......At a cost!
If you change your mind on the purchase without an acceptable reason you could forfeit all or a portion of your earnest money.
HUD Cancellations/Extensions
HUD automatically cancels contracts that do not close on the date indicated on the original contract. Extensions are granted on a case by case basis but must be requested I writing, on the correct form, at least 5 days prior to closing. The fees for a one time extensions are as follows:
$150 .00 for properties $25,000 or less
$225.00 for properties $25,001 -$50,000
$375.00 for properties $50,001+
For more information on HUD homes see: How To Purchase A HUD Home... OR How Does HUD's $100 Down Program Work? OR Hey Good Neighbor...
If you are looking to purchase a HUD property or have other real estate questions please call me at 614-273-6406 or email me at Vanessa.simmons@realliving.com
Thanks for the info. Even though I am a HUD agent there are very few in my area.
Jim thanks for stopping by and the comment. There are tons here in Ohio.
Vanessa - Thanks for the information. I learned something from your post.
George thanks for stopping by and the comment.
Hi Vanessa,
Here is the Foreclosure Law link you requested from my blog on RealTown. Hope you and your folks find it useful. For more they can visit the Loan Modification Network
Cheers!
Hey Vanessa,
Your posts are so full of information and I am so impressed with how simple you keep the information. It's not lengthy or boring or slow. You do an excellent job of hitting the important points while showing how knowledgable you are in such difficult transactions. Thanks for the information on the extensions. I have a HUD transaction right now where we have been waiting for 4 weeks to get the contract back. The agent asked me if he should get an extension right now but I told him to wait until we had the inspections and quotes back first (it's going to be a 203k). Extensions get messy and your information is extremely helpful. Thanks again!
Hello and thanks everyone for stopping by and you comments.
Khash, I have never waited 4 weeks to have a contract returned. I am sure they are calling HUD. The delays and general bureaucracy are reasons why folks tend to shy away from HUD but they can be worth the effort. thanks for your comments.
Hi Vanessa, Always a pleasure to read your valuable information. Was the credit for the plumbing close to the amount it would take to get the job done? Just wondering if that was also part of the reason to walk away.
Wanda, thanks for stopping by the cost to replace all the plumbing was going to be about 3500 with the dry wall repair but HUD was offering a 2500 dollar credit and yes that was one of the reasons the client walked. I even used a very reasonable plumber that I had used before and he is very cost cautious. I have no idea where they came up with the 2500 dollar figure.