Greg Harris (904) 461­3220

gregharris@watsontitle.net http://www.watsontitle.net
Watson Title Services of N FL, Inc. | 3951 Baymeadows Rd | Jacksonville, FL 32217

A HUD Closing – Not Your Normal Closing Process

Are you working with a buyer who is looking at
purchasing a HUD owned property?

If so, there are some important considerations to keep in mind as you work your
way to the closing table. Regardless of what the contract may or may not say,
HUD has its own rules that everyone has to follow.

Here are the top‐3 HUD‐specific requirements that cause the most confusion
during the closing process:

‐ HUD requires 5 full business days before closing to review all documents for
approval. Expect HUD to utilize the entire 5 days before making changes to the
ALTA Settlement Statement or issuing approval. They will not make exceptions.
Even as we notify the buyer’s lender at the beginning of the process of HUD’s
guidance timeline requirements, lenders without regular experience with HUD
closings may have trouble meeting tight timelines.
‐ HUD does not pay any of the closing costs. Even if they are your typical
customary seller costs, HUD expects the buyer to pay. They will only pay any
outstanding taxes, HOA dues and prorations. From time to time they may issue
a seller concession, depending on the nature of the contract.
‐ HUD does not allow last minute changes to the contract, even something as
simple as a buyer’s address, or changing their name to read on the deed such as
a middle initial, etc. It either has to stay as written or there is a process that has
to be followed to make this change. Last minute changes almost always result in
closing delays up to a week, sometime more.

Remember, even if you are experienced with HUD purchases, your customer
may not. Early on in the process, make sure they and their lender fully
understand the unique requirements of a HUD purchase.