Closing
Closing HUD Properties
Once a bid is accepted and a contract has been ratified the closing must occur within forty-five (45) days. The following activities should be reviewed and completed before closing:
Home Inspection
HUD Homes are sold "as-is," without warranty. That means that HUD will not pay to correct any problems. We encourage all buyers to have the home inspected as an inspection will provide the purchaser with the most current condition of the property and will notify purchaser of any needed repairs.
Obtaining Documents
After ratification of the contract, the lender may require copies of the FHA appraisal and the termite report. Complete the appropriate requests and email to sales@clfres.com
Scheduling your Closing
After ratification of the contract, the purchaser has forty-five (45) days to close on the property or to submit an extension request. If property does not close within the forty-five (45) day period and no extension request has been made prior to the forty-fifth day, the contract will be cancelled and earnest money forfeited according to forfeiture schedule. HUD's designated closing agent will schedule the closing. Closing agents are designated by HUD via a separate contract. Third-party closing agents may also be used but the closing date must still be scheduled with the HUD-designated closing agent and they must be present at the closing. Any additional cost for using a third-party closing agent must be paid by the purchaser.
Additional Time to Close
Regardless of the reason for not being able to close according to the sales contract, an extension request must be submitted to the Chapman Law Firm prior to the original closing date. There may be a fee for the extension depending on the reason for the request.
Contract Cancellation
In the event that a contract must be cancelled by either Chapman Law Firm or the purchaser, the property will be re-listed or Chapman Law Firm will process a back-up offer. If a purchaser must cancel, regardless of the reason, a cancellation request form must be submitted along with an explanation of the reason for cancellation. If the cancellation is due to a loan denial from a lender, then the denial letter must accompany the cancellation request. If the cancellation is based on a property condition issue then a copy of the Home Inspection should be included with the cancellation request. The decision regarding the refund, forfeit, or 50/50 split of the earnest money deposit is based on HUD guidelines as stated in the "Forfeiture and Extension Policy".