Friday, March 1, 2013

2013 HUD Changes

It seems like there is always something changing when it comes to HUD owned property.  Thats okay though because the system is continuously evolving to deal with the current market conditions.   So here's the latest!

Coming soon HUD will begin a new process for handling earnest money on HUD contracts. 

HUD bids won during the Buyer Select Program  will remit the sales contract to the specific asset manager that has the contract for the property.  You will not send the Earnest Money to the Asset Manager any longer from that date forward.

Earnest money will be made payable to the closing attorney's office (no longer payable to HUD). The selling agent will have 48 hours to remit their contract package to HUD's asset mananger and the earnest money to the listing broker.   To keep confusion down, I suggest including a copy of the bid confirmation sheet with the earnest money check.  This will help insure that the money is credited to the correct file.   Once your contract has been signed off by HUD and a copy is delivered to the listing agent,  we will then transfer the money to the closing agent.   Failure to remit the earnest money payable to the closing attorney and delivered to the listing broker is grounds for cancelling your contract by HUD so make sure you follow these instructions.  

Here is why...  HUD is moving towards a "Buyer Select" closing attorney instead of insisting that all closings be handled through one contract attorney's office.   In order to do this most efficiently, Earnest money will be transmitted to whomever the buyer chooses to close the deal.    At this time, Georgia is not participating in the "Buyer Select" program but we are moving in that direction.  This will mean that until the program is in full force in Georgia, you may still choose your own attorney to close the transaction but it will be considered a  third party transaction and your buyer will be responsible for the attorney fees charged by the 3rd party attorney.   Once we are in full swing of the "Buyer Select" program,  the buyer will be able to use their seller paid closing costs towards attorney fees just as they would on other real estate transactions.

To RECAP:  EFFECTIVE Soon  you will send your certified earnest money check payable to the closing attorney to Re/Max United Attn: HUD Department 1000 Bankhead Hwy, Carrollton GA 30117.  Remember to include your bid confirmatin sheet to confirm that the check is credited to the correct file.   Also,   include the address and contact number of the closing attorney if it is one other than Fearnley Calif  (HUD's Current contract attorney)

Effective this year HUD has one Field Service Manager for the state of Georgia.   No more having to scroll through the listing to find who the FSM is to decide what to do about activating utilities fo inspections or reporting property condition issues.   It's now a one stop shop!   Our new Field Service Manager for Georgia is 




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