HUD Buyer Select Closing Agent # saturn0001
Upon determination of the Asset Manager for the property you are purchasing, please select and complete the appropriate form. The form should be submitted with your Contract to the Asset Manager.
HUD Contact Information:
Sophia Mihopoulos – HUD Coordinator
1030 W. Higgins Road, Suite 365
Park Ridge, IL 60068
HUD Seller Information
There are three new Asset Manager (AM) contractors who are responsible for marketing these properties. If you have looking to or have bought a HUD home in Northern Illinois you will be dealing with one of the following:
1283 Murfreesboro Pike, Suite 200
Nashville, TN 37217
2000 River Edge Parkway, Suite 300
Atlanta, Georgia 30328
3525 Piedmont Rd., N.E.
Bldg. Five, Suite 310
Atlanta, Georgia 30305
You can see all the properties these three AM contractors have listed in Illinois at:
HUD Extension Request
If for some reason such as your lender not being ready to close by the 45 days expiration date of your sales contract your broker will have to file an extension form with Saturn Title, LLC. You will have to pay a fee for a 15 days extension of your sales contract as follows:
Extension requests are good for 15 days.
Contract Sales Price equal to or less than $25,000………Extension fee is $150 total ($10.00 per day)
Contract Sales Price of $25,001 to $50,000…………………Extension fee is $225 total ($15.00 per day)
Contract Sales Price over $50,000……………………………..Extension fee is $375 total ($25.00 per day)
If on the other hand the seller (HUD) is not ready to close you may be granted a fee waived extension with the approval of the Asset Manager contractor assigned to your property.
Do not forward extension requests directly to the Asset Managers. Saturn Title, LLC is contractually obligated to administer all extension requests and failure to submit the extension request to Saturn Title, LLC may result in your sales contract expiring.
For extensions request forms contact Saturn Title HUD Coordinator Myra Kurpita. Please allow 5 days prior to request an extension.
What is a “HUD Home”?
When someone with an FHA insured mortgage can’t meet the payments, the lender forecloses on the home; HUD pays the lender what is owed; and HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. HUD tries to sell it at market value as quickly as possible.
Who can buy a HUD home?
Almost anyone! If you have the cash or can qualify for a mortgage, subject to certain restrictions, you may buy a HUD home. HUD employees and relatives of HUD employees are eligible, but must receive written approval from the Director of HUD’s Office of Single Family Asset Management in order to purchase a HUD-owned single family property. HUD employees should refer to paragraph 10-29C of Handbook 4310.5, REV-2, Property Disposition Handbook-One to Four Family Properties for the exact requirements to purchase a HUD-owned single family property. Other less common restrictions may apply.
How do I buy a HUD home?
Answer: Start by finding a participating real estate agent. Your real estate agent must submit your bid for you. Normally, HUD Homes are sold in an “Offer Period.” At the end of the Offer Period, all offers are opened and, basically, the highest reasonable bid is accepted. If the home isn’t sold in the initial Offer Period, you can submit a bid until the home is sold. Bids can be submitted any day of the week, including weekends and holidays. They will be opened the next business day. If your bid is acceptable to HUD, your real estate agent will be notified, usually within 48 hours
Can I buy a HUD Home as an investment?
Most HUD Homes are initially offered on a priority basis to owner occupant purchasers (people who are buying the home as their primary residence). Following the priority period, unsold properties are then available to all buyers, including investors.
What do I need to bring?
As far as what to bring, check with your loan officer to be sure. Common items required for purchasers include an insurance binder and paid receipt for your property insurance, current paystubs, original inspections, including a wood destroying insect (termite) inspection, and government issued photographic identification, such as a driver’s license. It is common for closing agents to require certified funds from the purchasers to close. You should also make appropriate arrangements with utility companies, though this generally will not affect the closing. In some counties, you should go to the county assessor’s office after closing to sign up for owner-occupied or homestead exemptions for your real estate taxes. This will generally save you up to several hundred dollars per year. Ask your attorney for specific information for your county.
Why do I need an attorney? Doesn’t my lender provide one?
The short answer is no. The lender is only concerned that there are no liens against the property which may have priority over the lender’s mortgage. Issues such as possession, easements and restrictions which may affect your use of the property, and defective mechanicals are not a concern of your lender. Additionally, many lenders use title companies rather than attorneys to close their loans. Only attorneys may dispense legal advice and representation.
Should I get a home inspection?
HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection prior to submitting an offer to purchase.
What is an Owner’s Policy?
A lender’s title insurance policy does not protect you. Similarly, the prior owner’s policy does not protect you. If you want to protect yourself from claims by others against your new home, you will need an owner’s policy. When a claim does occur, it can be financially devastating to an owner who is uninsured. If you buy an owner’s policy, it is usually much less expensive if you buy it at the same time and with the same insurer as the lender’s policy.
What can I do to expedite the closing?
In the Chicago area and the Collar Counties many municipalities have requirements that are the buyer’s responsibility such as an inspection or transfer stamp. Make sure your real estate broker is familiar with the requirements. As the buyer, it is your responsibility to ensure that your lender is ready to close. While you have been pre-approved for a loan, this does not mean your lender is ready to fund the transaction. You should contact your lender as soon as you have a signed sales contract to see what else they need from you to be ready to close. Many closings have to be rescheduled because the lender was not ready.
When do I schedule the closing?
As soon as you learn that your lender is ready to close and you have met all the local municipal requirements that are the responsibility of the buyer contact the HUD Coordinator of Saturn Title. to schedule the closing. Make sure you contact Saturn Title before the 45 day period expires. If you do not, you will have to file an extension form for a 15 day extension and pay a fee. If you do not file an extension request your sales contract will be cancelled.
For more information go to: www.hud.gov