HUD Department

Closing Highlights

February 2010

Welcome back!  Last month we outlined the importance and details of the six business day figure rule.  This month we will answer the questions – “Why did I find out the day of our scheduled closing that we would not close?” 

As part of our contractual obligations with the United States Department of Housing we must submit a package to Michaelson, Connor and Boul four business days prior to the closing date.   For example, we submit a package on Monday and it is returned to us on Thursday for closings taking place on Thursday.

If there is a hold placed on the file for any reason; we are made aware the morning of the closing. These holds can consist of additional requirements of past homeowners association charges, additional time for checks to be delivered to us from Michaelson, Connor and Boul,  lead based paint issues and other items.  We immediately contact the Realtor upon obtaining this information.   Unfortunately, if you are scheduled for an 11:00am closing you and your buyers may already be in transit to our office when you receive this phone call. 

Another reason that your closing may not take place as expected is due to funding delays.  The United States Department of Housing requires us to have all funds necessary for the transaction prior to beginning the signing.   We are not allowed to close in escrow on HUD deals in the State of Colorado.     This may leave your buyers waiting for an extended period of time for a lender wire to arrive in our bank account.    Additionally, if the lender inadvertently wires the funds to another title company (as can happen if another company prepares the title work) we cannot close.

Do not let this items alarm you as they are the exception opposed to the rule.  We at Williams Title will do everything we can to get you closed quickly and painlessly.

Our goal is a smooth successful closing!

Sincerely,

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