What To Expect With HUD Closings
If a homeowner with an FHA mortgage defaults on their loan and the property moves into foreclosure, the U.S. Department of Housing and Urban Development (HUD) takes control. HUD then sells these homes on the open market to make-up for any financial losses.
If you’re considering buying a HUD home, this guide will give you an overview of the closing process, which is one of the final stages before you take ownership of the property.
What Is A HUD Closing?
Closing on a HUD home is a process where we ensure all paperwork is accurate, there are no outstanding legal claims on the property, and funds securely transfer as specified. It’s also when you sign all the documents related to the transaction to make it official.
What To Expect During A HUD Closing
You can expect to sign a large stack of documents, depending on your lender and the complexity of the transaction. That may sound like a lot, but don’t worry. You are not expected to read and absorb everything in the documentation during closing.
Mattingly Ford Title does the work for you to ensure all of these documents are accurate, and we explain them to you so you know what you’re signing. We recognize the significant legal implications associated with real estate transactions. It’s our duty to understand and verify every crucial detail.
How Long Does HUD Closing Take?
Typically, HUD allows winning bidders up to 45 days to close.
What Do You Bring To Closing?
Before closing, your lender will give you documentation that explains closing costs, how much cash you need at closing, and a list of documents to bring. Typically, it will include a paid receipt for your property insurance, original inspections, photo ID, and certified funds.
Contact Mattingly Ford Title Today
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