Wednesday, December 10, 2008

query: HUD-1 signing requirements on Sheriff's sale

In my neck of the woods, the Sheriff does not sign a HUD-1.  Most purchases at Sheriff's sale are for cash so there is no HUD-1.  

If the buyers are getting a mortgage, there will be a HUD-1 prepared, however all costs will be on the buyer side.  The buyer needs to discuss this with their lender up front so the lender has had an opportunity to think through the issues.  

When we do this kind of closing, the lender pre-funds the loan, we meet the buyers at the courthouse, sign the mortgage docs, then walk over to the Sheriff's office to exchange the proceeds check for the deed.  That's it.

1 comment:

Diane Cipa said...

Hey, got this anonymous comment via e-mail:

"I'm a dinosaur and don't blog but I wanted to comment on the above. RESPA regs do not require HUD-1's to be signed. Try having that discussion with an idiot lender who thinks everything has to be signed. I have been doing battle with lenders for 20 +years about this. They don't get it as well as most Escrow Officers who have not had to look into this. Another pet peave of mine is when our firm represents a buyer we always ask for a Closing Protection Letter for the buyer. All we get is an argument from the title agent that they are only for a lender. Usually after a heated exchange they will call the underwriter and confirm the CPL is for lenders, buyers and lessee's. Thanks, I vented for the day."