Top things that go wrong in your HUD contract package (continued from Part 1).
LBP Addendum - Broker fails to initial where required (they use check marks instead of initials)
Lender Letter does not indicate all the required items: loan type, loan amount, sales price, statement that credit has been verified, signature of loan officer, as well as name, title and contact information of the loan officer. A high percentage of lender letters are not in compliance
Earnest money is not included with the contract package (the actual check must be included in the package, not a copy) or it is in the wrong form. EM must be a money order or other certified funds, and it must be made payable to HUD. Alternatively, the certified funds can be written to HUD OR Buyer (insert buyer name/s). Using the alternative method makes it easier for the buyer to redeem the funds, if the deal should fail before the contract is submitted to HUD
Now, about those signatures (on the contract itself)...
Who signs where is tremendously simplified, if you use the "Fillable Contract" found on HUDhomestore, because the typed names will be auto-populated (as will the dates and amounts, which should help eliminate simple typos). Here is a color-coded key for who signs where (yellow is for the buyers, red is for HUD so DON'T put anything there, green is for the BROKER OF RECORD (the person who signed the NAID application or his/her certified designee, not usually the salesperson):
The ONLY MENTION of the salesperson on the contract itself is the typed name and phone number (bottom line of the illustration above), and that is pre-populated if you use the Fillable Contract. Though the salesperson does not sign the actual contract, there are many places in the contract package that do require the salesperson's signature, so check every page of the addenda.
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