HUD’s Buyer’s Choice Comes to Southern California!

Great News This Morning!!!! 

Got HUD homes sticker
   HUD will be implementing a “Buyer Choice” closing agent trial program for properties located in the counties of Los Angeles, Santa Barbara, Ventura, and San Bernardino, California.

All Buyers whose contracts are executed on or after February 25, 2013 will be able to choose their own escrow company.

Please note escrow fees for the Buyer Choice program will now be a buyer expense. However, if the buyer chooses to utilize HUD’s closing agent (Cimarron Escrow), the escrow fee will be paid by HUD automatically. Program guidelines are listed below.

Addendum: At the time of contract submission, the selling agent is required to complete an addendum providing PEMCO with the name and contact information of the selected escrow company or buyer’s intent to use Cimarron Escrow.

Sales Contract Line 5: HUD will only pay a portion of the closing fees, if the buyer includes closing costs on line 5 at the time of bid submission and there are sufficient funds remaining to allow for this fee to be paid. If there are no closing costs included in the bid, the buyer will be required to pay all escrow and closing fees.

Earnest Money Checks:
(1) Buyer electing an escrow company other than HUD’s closing agent must make the EM check (certified funds) payable to both “Escrow Company or Name of Buyer”.
(2) Buyer who elects HUD’s closing agent must make their check (certified funds) payable to both “HUD or Name of Buyer” (see Earnest Money guidelines).

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