Tip 42-2009: REO Closings Delays with HUD Approval

As the REO Banks own more foreclosure properties, there will eventually be more delays with their out sales. One recent delay was due to the requirement that the REO Bank needs to approve the final HUD (which review usually requires 48-72 hours). Because the REO insists on both sides of the HUD being completed, this means that the final HUD can not be submitted to the REO until the Purchaser’s lender has approve the HUD (usually this does not occur until the day before closing). As a result, although the loan is approved and funded, the recording of the deed and delivery of the keys to the Buyer may be delayed several days until REO HUD approval. Please warn the Buyer that these delays may occur!!

PS—One strategy we have used is asking for the lender’s package as early as possible and pushing the REO representative for a quick HUD approval.

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBlaw.com
http://www.tgblaw.com/
http://www.tgblaw.blogspot.com/

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About Charlotteville Personal Injury Attorney

Personal Injury attorney helping people injured in automobile, truck or mortorcycle accidents.
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2 Responses to Tip 42-2009: REO Closings Delays with HUD Approval

  1. hello Mr. TuckerI am a college student and blogger. I have taken a interest in law and the current mortgage pains of the American Homeowner.I am researching all the mortgage assistance programs and organizations. I have heard whispers of a new government sponsored plan that will focus on expediting and creating a cheaper path for homeowners, investors, and banks to complete and process short sales and deed in lieu of foreclosure agreements. I was just curious if you have any info since you seem to be "in the know"Thanks so much.P.S.I am studying for a Biz Law exam right now and, had a question that you answered for me! found you through lawyers com, so thanks for the help!

  2. this delays may occur, its not that new..knowing this days happening..

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