11b. After winning the bid: Weeks 2 through 6
11c. Important Don't's
Read the full Chapter Eleven in one page
Buyers should be present for any home inspections. Keep in mind that the real estate agent must be present to provide the inspector with access to the property.
Check with the lender to ensure that the loan file is complete. For conventional financing, an appraisal should be ordered. However, FHA financing will not require another appraisal as long as the appraisal has been done in the past 150 days or less.
If the inspections show significant damage to the home, buyers must decide whether to proceed with the sale. HUD homes will not be reduced in price and repairs will not be completed. In the event that serious property deficiencies are revealed, buyers may have their earnest money returned to them.
At this point, take time to check with the real estate agent and the lender to ensure everything is going as planned. Everyone should know have the signed HUD contract.
Talk with the title company, real estate agent and lender to find out how everything is progressing. If the lender needs extra time for the loan processing, this is the point where a Contract Extension should be filed. These extensions must be filed 10 days before the contract expiration date, so buyers should never leave them later than the fourth week.
This week the time for settlement should be scheduled.
Prior to settling the property, a walk-through inspection should be conducted. Try to take care of this on the same day as the property settlement. Buyers may want to bring along padlocks for the home to replace the HUD padlocks on the home. Real estate agents may remove the HUD padlocks. Remember, various real estate agents may have HUD keys that fit the padlocks on the home. To avoid unauthorized entry, replacing those padlocks with new ones is important.
- DON’T ask for a key to HUD homes before closing on the home
- DON’T ever enter the home without the presence of the real estate agent
- DON’T repair anything before closing on the home
- DON’T keep any personal belongings in HUD homes before closing
- DON’T move into the home before closing is complete