Williams Title Guaranty and Escrow Agency, LTD.

HUD Department Closing Highlights!

Welcome!  Over the last several years we have had a contract with the US Dept of Housing to handle Colorado closings.  We have run in to some areas of confusion and would like to inform you of some items that will delay your closing as well as the steps necessary to get you to the closing table.  Each month we will bring you another bulletin in laypersons terms discussing the issues.

This month answers the questions:

“Why do my figures need to be there six business days prior to closing when on my non-HUD deals they get there 10 minutes before closing?”Figures received, the clock begins next business day    

Day 1     Processor reviews file and updates any necessary items.  Invoices cannot be more than 15 days old on HUD transactions.  This is in the best interest of both HUD and your buyer as foreclosures tend to have extensive past due balances on water and homeowners association accounts.

Day 2    Closer prepares  HUD 1 settlement statement and submits to lender for review (Realtor on Cash transactions)   Lender has 24 hours to make any necessary changes.

Day 3    Package is submitted for internal audit.  After audit file is submitted to the M&M Contractor  (Michaelson, Connor and Boul) for their review and process.    Once package is submitted there can be no changes on the figures without a delay in closing.

Day 4   M&M (Michaelson, Connor and Boul) Review Time

Day 5   M&M (Michaelson, Connor and Boul) Review Time

Day 6   Day of Closing.  Prepackage is returned from the M&M Contractor (Michaelson, Connor and Boul) and closing takes place. 

Our goal is a smooth successful closing!

Sincerely,

Michele Brotherton
HUD Closing Manager, Williams Title Guaranty and Escrow Agency, LTD