HUD’s New Program Allows Agents to Choose Title Company
Starting October 1, 2013 in the Columbus area, this new program allows agents to pick the Title company instead of using the HUD selected title company. This falls under the new BSC a program which stands for buyers select closing agent. In the past, HUD required their own title, escrow and closing agent company to handle the finality’s on a real estate transaction but now buyers and their agents can choose. Currently, this program is in several counties and states and was just implemented on October 1, 2013 for the Columbus area. It will continue to be implemented across the country and different regions in the future.
The closing agent is responsible for conducting closings, submitting closing packages and wiring sales proceeds to the U.S. Treasury. This fee is paid for by the buyer and now the buyer and their agent can choose whom to use. This was originally implemented on July 1, 2013 and we are just now seeing the results of that across the country.
Buyers of HUD homes are now able to select their own clothing agents but HUD will no longer offer to pay for the settlement costs. This new program requires an addendum that identifies the title company or closing agent and they must have a HUD issued title ID number. If the buyers choose to use a closing agent who is not registered with had additional information is required including an attached E & O insurance policy, a copy of their state license, and the state regulatory agency license.
So what does this mean for buyers?
Being restrictive in whom to choose to close the transaction can result in frustrations and added fees that are unnecessary. Now that the buyer and their agent can choose a closing agent of their choice, buyers can potentially save money and feel more comfortable when purchasing HUD homes.
For more information on buying and closing homes in the Columbus Ohio area called the offices of Vision Realty today.