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Final Hud-1 Approval

Posted by Gin Rich on March 8, 2010 at 6:44pm

Can anyone answer a question about a short sale which was appoved 2/1/2010? We have B of A approval expires on 3/7/2010, Sunday and the approval letter states B of A must approve the final HUD, the listing agent had been told to upload it to the Equator site, which was done last Tuesday 3/2/2010. At this point no one has reviewed the HUD, a closer was just assigned according to the Equator Site, buyers lock expired Friday and title and buyers bank are requiring an extension letter on the short sale. The listing agent has been calling and having a hard time getting through, the escrow officer has called but Equator will not talk to her, listing agent has the authority to talk on sellers behalf. Any suggestions??? Is this common?

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Comments

Dee Garcia May 25, 2010 at 7:05am

Hi Bryant, I am running into a situation with a short sale that got approved a month ago. We are getting ready to do the closing so the title company send out the HUD for final approval to Bank of America's closing dept. The person closer that reviewed the HUD for BofA wants to slash the fees on the final HUD that were previously approved on the negotiating HUD/ Approval Letter (sort of like a bait-and-switch). I feel that this is just not right, especially that they had previously approved and allocated such numbers and sent out the approval letter accordingly. Have you had this experience, any suggestions...I think the Title company would not want to send fund to the foreclosing lender without getting the final HUD approved. They think they have to follow the instructions of the approval letter.
Sam Purtle March 23, 2010 at 1:28pm

Gin - congratulations. I am in the process of having a very similar issue resolved with the office of the President. Our story was similar. Short sale approved on 2/12/2010. Closed in escrow on 3/15 with an approved HUD-1 and wired funds to BofA. Property then sold to Fannie Mae at foreclosure on 3/17!!!. Fannie Mae hired an REO agent who called wanting to get into the property.. agent said this happens at least twice a week !... oh what fun we have had over the past several days....
Gin Rich March 22, 2010 at 5:31am

Sam it finally closed on Friday but it was a nightmare, B of A really needs to get their act together. I ended up calling our Congressman, the Executive Offices of B of A, filed a complaint with the OCC, set up a Twitter site so I could communicate. I would suggest you contact the Exectuve Offices and call your congressman and stay on top of them daily!!
Sam Purtle March 21, 2010 at 4:15am

Gin

Please let us know what happened on this. The almost exact same thing happened to us last week, which has driven my frustration level through the roof.
Gin Rich March 15, 2010 at 10:48am

Bryant do you know any way to get a hold of Matt Vernon at Bank of America? We still do not have approval on the final HUD-1, closing was scheduled for 3/5 and B of A guaranteed we would have an answer today on our HUD and now they have extended their time to 3/20/2010, which is another weekend. Agent and closing keep calling but we are not getting an answer that we can rely upon, only more delays. Interest rate expired today and now the buyer is having to pay for a lock extension. I have called numerous times and one time they have my authorization and will speak to me and the next day they tell me there is no authorization for my self or the closing agent. We are all so frustrated and cannot seem to get out of the GIANT B of A BLACK HOLE. WE HAVE BEEN READY TO CLOSE SINCE THE FIRST WEEK OF MARCH! CAN ANYONE HELP WITH CONTACTING MATT VERNON OR ANYONE ELSE THAT CAN HELP?
Daniel Francis March 14, 2010 at 3:15am

I agree with Bryant.... Never rely on Equator... you MUST call to get that HUD approved. Let them know you're at the closing table and you need approval now!
Bryant Tutas March 9, 2010 at 5:05am

Frustrating indeed. There should have been a closing negotiator assigned once the approval letter was given. I have never had an issue getting the final HUD approved. But I have also not had to do it through Equator yet.

My title company will usually just close the deal as long as the terms in the written demand (approval) have been met.

The listing agent needs to get on the phone and go up the chain of command at BofA to get this deal closed.