Re: Hud Do or Die? - Posted by CarolFL
Posted by CarolFL on April 02, 2000 at 16:00:12:
Let’s assume that all of the regions work the same (we are in FL).
Deposit is $500 for bids under $50,000 ; $1000 for those over.
As to contingencies, unless it goes in as a cash offer, it, like other contracts, has a place to check that you are getting financing.
This requires a prequalification letter from a lender (not a pre approval), to send to HUD with the contract within 48 hrs after bid acceptance.
Last spring, we got a refund from HUD because a termite inspection indicated bug damage, but the lender would not lend until and unless we could assess the amount of damage and escrow for repairs. To do that, HUD would have had to authorize our pulling out a large chunk of dry wall from the kitchen area - at least …
So… despite our qualification, the lender would not make the loan, wrote us a letter to that effect, and we got our $1000 back from HUD.
A lot of their contracts dO NOT close, so they are trying to cut back on that.
Hope this helps with your questions.