Getting HUD To Help Stop Charging Fees To Extend Closings When It's NOT The Buyer's Fault!
Most everyone knows that HUD changed their way of closing homes this past year. Now there are several companies that are servicing foreclosures for HUD....one of these servicing companies is charging to extend contracts.
My office has a large number of HUD foreclosures waiting to be closed. We have qualifed buyers (some cash buyers) that, due to no fault of the buyers, are waiting for title work to be completed through Northwest Title.
With the large number of foreclosures, needless to say Northwest Title is behind and a number of the contracts to be extended.
This is where one of these service companies comes in. They are charging a fee.....for any reason......to grant an extension to close......regardless of whether it's the fault of the title company. This is NOT a HUD approved fee, it a fee that this company says they need to extend the closing date. Oh, and they don't care who pays it. Doesn't have to be the buyer. It can be the real estate agent. Or it can be a family member......THEY DON'T CARE!
Here's my problem. Many of these homes have first time home buyers that are anxiously waiting to move into their first home. They have saved money for over a year for their down payments. They must keep a certain amount of money in the bank in order to qualify and close on these homes. They have not put aside funds to extend the closing in order to keep Home Telos from putting their house back on the market, due to an overload of title work.
We have now contacted a high ranking officer inside HUD and was told the fees that this company is charging is totally unacceptable! We should find out next week if this is being charged across the country or if it is just in our area.
The main objective of HUD is to offer foreclosures to buyers that could initially not been approved to buy and get home ownership back on track in the United States of America. For these companies working on behalf of HUD, penalizing them with fees that are not necessary is absolutely rediculous! However, with HUD on our side, we hope to stop this unnecessary anguish for these buyers.
STAY TUNED!
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