New HUD Homes Buyer Select Program
- Category: resq-modules
- Published on Saturday, 04 January 2014 07:51
- Hits: 1090
The new HUD program, Buyer Select Closing Agent, has already been rolled out in North and South Georgia. It went into effect for metro Atlanta on 7/14. Here are the highlights: Buyers now choose their own closing attorney. Each Asset Manager has a “Buyer Select Closing Agent Addendum” that must be included in the sales contract package (available on their websites). HUD will pay up to 3% of purchase price in closing costs.
Buyer Select Closing fees is a buyer expense.
HUD will pay only a portion of the closing fees, if the buyer includes closing costs on
line 5 of the sales contract at the time of bid submission and there are sufficient funds
remaining to allow for this fee to be paid. If there are no closing costs included in the bid,
the buyer will be required to pay all settlement and closing fees.
At the time of bid submission, the selling agent is required to complete the Buyer Select
addendum providing the Asset Manager with the name and contact of the selected escrow/closing
company. If it’s a Pemco or HomeTelos property:
The Earnest Money, in form of money order or Certified funds, is made payable to the
Closing Attorney but must be delivered to the Listing Broker within 2 business days of the bid
acceptance (Listing Broker will forward to closing attorney upon contract acceptance by HUD).
The Selling Agent sends the contract package to the Asset Manager within 2 business days of
the bid acceptance.
If it’s an Ofori property:
The Selling Agent must deliver the Contract Package and Earnest Money payable to the
LISTING BROKER to the listing broker according to the listing broker’s policy
Most Listing Brokers will require next day delivery because it is the Listing Broker’s
responsibility to over-night the package to Ofori within 2 business days.
Most Listing Brokers will require that Selling Agent deliver the package in a pre-paid
over-night envelope which is left unsealed.
There are also instructions for the Closing Attorneys and many hoops for them to jump through.
If you wish, you may continue to utilize the closing services of Fearnley and Price if they are
in your area. Their Title ID Number for HUD’s Buyer Select Program is FEARNL 0001. You can send
If you have any questions, contact Max Yates for HUD Home Buying Support at 678-355-8066.