The Buyer
Select Closing
Agent Program
What Does This
Mean For You And
Your Buyers?
Your buyers are now able to select the
title company of their choice.
You now have a new contract addendum
to complete and...
What Has Changed?
What Hasn’t?
Closing
Agent Fee
Paid

The Closing
Agent Fee is no
longer paid for
by HUD. This
is now a buyer
expense.
The closing agent fee can be included in
closing costs paid by the seller (Line 5 of
the purchase contract).
Please keep i...
The bidding process hasn’t changed.
Just remember if you don’t have any or
enough funds on Line 5 your buyer will
be payin...
The first difference you’ll notice is in
completing the contract packet. On the
second blank of both Line 3 and Line 9 of
...
Your buyer must have a title company
chosen at the time the contract packet
is being completed. Contracts with
“Buyer Sele...
The next difference will be a new
addendum, The Buyer Select Closing
Agent Contract Addendum, that must be
turned in with ...
Buyer Select Closing Agent Contract Addendum
This form must be completed in its entirety and submitted with the actual pur...
This addendum provides HUD with the
buyer’s chosen title company’s contact
information.
If the selected title company has ...
HUD Title ID Numbers are only assigned
when a title company is chosen by a
buyer and then only for that specific
office.
T...
Acceptable title companies must:
1.	Be licensed to do business in the state
the property is located in.
2.	Be regulated by...
5.	Can’t currently be disbarred,
suspended or otherwise excluded
from participating in HUD transactions
or federal program...
The HUD Title ID Number is linked to
the title company’s address not the title
company itself. Each office address will be...
Property Address:
___________________________________________________________________________________
Purchaser’s Name ___...
When completing this addendum it is
very important to speak with the title
company to find out how their name and
address ...
The other important piece of information
you need from the title company is who
is handling their HUD contracts. This will...
This Primary Contact Person will also be
the liaison between HUD and the closer.
All communication will be going through
t...
The Secondary Contact Person will be
the Primary Contact Person’s backup and
will also need to be well versed on HUD’s
req...
If the title company fails to adhere
to HUD requirements their HUD Title
ID Number can be revoked, financial
penalties may...
The next change is the earnest money
check. It still must be certified funds, but
you do not submit it with your contract
...
The check is made payable to the closing
agent selected by the buyer or the buyer’s
name. (Unified Title or John Doe)
You then take the check, a copy of
the Sales Contract and a Copy of the
Buyer Select Closing Agent Addendum
to the listing...
Your contract will not be executed and
your bid will be cancelled if the earnest
money is not delivered to the listing
age...
Within two business days after the sales
contract packet has been executed the
listing agent will then deliver the earnest...
Extensions
The extension process will be another
change. Extension will no longer be
handled by the title company.
Extensions are to be submitted to the
Asset Manager five business days prior to
the contract expiration with the Extension...
What If My Buyer
Wants To Change
To A Different
Title Company?
This process will vary from asset manager
to asset manager so if you find yourself
in this situation you need to talk to t...
In the case of HomeTelos you have to
have an unresolvable issue with the title
company before they will even consider
allo...
If you do come upon an unresolvable
issue you would then contact your PreClosing Specialist who will decide whether
or not...
Helpful Tips
1.	Have the buyer pick a title company
and get the Buyer Select Closing Agent
Addendum completed prior to Bid...
?
?

Questions?
Stormy Crawford
719-540-6469
Stormy.Crawford@wesellmore.net

Terrie Elwood
719-540-6468
Terrie.Elwood@wesellmore.net
Buyer Select Training Region 1D HomeTelos
Buyer Select Training Region 1D HomeTelos
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Buyer Select Training Region 1D HomeTelos

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Effective October 28, 2013, HUD implemented a Buyer Select Closing Agent Program in Colorado. This slideshow contains important information on changes to completing the contract packet and how earnest money will be handled.

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Buyer Select Training Region 1D HomeTelos

  1. 1. The Buyer Select Closing Agent Program
  2. 2. What Does This Mean For You And Your Buyers?
  3. 3. Your buyers are now able to select the title company of their choice. You now have a new contract addendum to complete and are responsible for ensuring the earnest money is delivered to the listing agent.
  4. 4. What Has Changed? What Hasn’t?
  5. 5. Closing Agent Fee Paid The Closing Agent Fee is no longer paid for by HUD. This is now a buyer expense.
  6. 6. The closing agent fee can be included in closing costs paid by the seller (Line 5 of the purchase contract). Please keep in mind seller paid closing costs are limited to 3% of the purchase price.
  7. 7. The bidding process hasn’t changed. Just remember if you don’t have any or enough funds on Line 5 your buyer will be paying for the closing agent fee out of pocket.
  8. 8. The first difference you’ll notice is in completing the contract packet. On the second blank of both Line 3 and Line 9 of the sales contract you will enter the title company of your buyer’s choice.
  9. 9. Your buyer must have a title company chosen at the time the contract packet is being completed. Contracts with “Buyer Selected Closing Agent” or “TBD” on Lines 3 and/or 9 of the Sales Contract will not be accepted.
  10. 10. The next difference will be a new addendum, The Buyer Select Closing Agent Contract Addendum, that must be turned in with every contract packet. This addendum will vary depending on the Asset Manager so make sure you are going to their website and completing the packet and addendum found there.
  11. 11. Buyer Select Closing Agent Contract Addendum This form must be completed in its entirety and submitted with the actual purchaser signed sales contract. This contract to purchase is eligible for participation in the HUD “Buyer Select” pilot closing agent Program. It is the responsibility of the purchaser to choose their own escrow/closing company. HUD will not pay for the escrow/closing service. It will be the responsibility of the purchaser. Please note Line 9 of the HUD-9548 Sales Contract must contain the buyer selected closing agent listed on this form. I/We authorize HomeTelos, L.P. (Asset Manager) to release a copy of the sales contract and all applicable addenda/ amendments for the following property to the closing agent/escrow company listed on this form. FHA Case Number ____________________________________ Property Address: ___________________________________________________________________________________ Purchaser’s Name ____________________________________________________ Phone Number ______________________ Purchaser’s Name _____________________________________________________ Phone Number ______________________ Purchaser’s Name _____________________________________________________ Phone Number ______________________ Purchaser’s Name _____________________________________________________ Phone Number ______________________ Selling Broker Name _____________________________________________________ Phone Number ______________________ Listing Broker Name ______________________________________________________ Phone Number ______________________ Title Company/Closing Agent/Escrow Company Information Company Name_________________________________________________________ Phone Number ______________________ Primary Contact Person __________________________________________________ Phone Number ______________________ Secondary Contact Person _________________________________________________ Phone Number ______________________ Office Address__________________________________________________ City________________________________________ State_____ Zip _________ Email Address_____________________________________________________________________ Has this closing/escrow company previously registered with HUD? Yes No If yes, please enter HUD Title ID# if known _______________________________ __________________________________________ _________ Purchaser’s Signature Date _________________________________________ __________ Purchaser’s Signature Date __________________________________________ _________ Purchaser’s Signature Date ________________________________________ ___________ Purchaser’s Signature Date ___________________________________________________________________________ Seller’s Signature ____________________ Date
  12. 12. This addendum provides HUD with the buyer’s chosen title company’s contact information. If the selected title company has never closed a HUD transaction under the Buyer Select Program they will be assigned a HUD Title ID Number.
  13. 13. HUD Title ID Numbers are only assigned when a title company is chosen by a buyer and then only for that specific office. Title companies cannot pre-register.
  14. 14. Acceptable title companies must: 1. Be licensed to do business in the state the property is located in. 2. Be regulated by the State Insurance Commission or similar state agency. 3. Be covered by E&O Insurance of at least $1,000,000. 4. Shall provide a Closing Protection Letter when requested.
  15. 15. 5. Can’t currently be disbarred, suspended or otherwise excluded from participating in HUD transactions or federal programs. 6. Can’t have immediate family members or business associates with a financial interest in the property involved in the closing process. 7. May not violate Title VIII of the Civil Rights Act of 1968.
  16. 16. The HUD Title ID Number is linked to the title company’s address not the title company itself. Each office address will be assigned its own HUD Title ID Number.
  17. 17. Property Address: ___________________________________________________________________________________ Purchaser’s Name ____________________________________________________ Phone Number ______________________ Purchaser’s Name _____________________________________________________ Phone Number ______________________ Purchaser’s Name _____________________________________________________ Phone Number ______________________ Purchaser’s Name _____________________________________________________ Phone Number ______________________ Selling Broker Name _____________________________________________________ Phone Number ______________________ Listing Broker Name ______________________________________________________ Phone Number ______________________ Title Company/Closing Agent/Escrow Company Information Company Name_________________________________________________________ Phone Number ______________________ Primary Contact Person __________________________________________________ Phone Number ______________________ Secondary Contact Person _________________________________________________ Phone Number ______________________ Office Address__________________________________________________ City________________________________________ State_____ Zip _________ Email Address_____________________________________________________________________ Has this closing/escrow company previously registered with HUD? Yes No If yes, please enter HUD Title ID# if known _______________________________ __________________________________________ _________ Purchaser’s Signature Date _________________________________________ __________ Purchaser’s Signature Date __________________________________________ _________ Purchaser’s Signature Date ________________________________________ ___________ Purchaser’s Signature Date ___________________________________________________________________________ Seller’s Signature ____________________ Date
  18. 18. When completing this addendum it is very important to speak with the title company to find out how their name and address should be. This determines how it will show up on the HUD 1 If they have multiple offices make sure you have the correct address for the office you are using.
  19. 19. The other important piece of information you need from the title company is who is handling their HUD contracts. This will be the Primary Contact Person. This is not your closer, but the one person the title company has designated to be in charge of all HUD contracts and insure all of HUD’s requirements are being met.
  20. 20. This Primary Contact Person will also be the liaison between HUD and the closer. All communication will be going through this person.
  21. 21. The Secondary Contact Person will be the Primary Contact Person’s backup and will also need to be well versed on HUD’s requirements.
  22. 22. If the title company fails to adhere to HUD requirements their HUD Title ID Number can be revoked, financial penalties may be assessed and they could be banned from closing HUD homes.
  23. 23. The next change is the earnest money check. It still must be certified funds, but you do not submit it with your contract packet. Instead you submit a copy of the earnest money check.
  24. 24. The check is made payable to the closing agent selected by the buyer or the buyer’s name. (Unified Title or John Doe)
  25. 25. You then take the check, a copy of the Sales Contract and a Copy of the Buyer Select Closing Agent Addendum to the listing agent. It must be in their office within two business day of bid acknowledgement. The listing agent will then upload the earnest money and earnest money receipt to HUD.
  26. 26. Your contract will not be executed and your bid will be cancelled if the earnest money is not delivered to the listing agent within two business days.
  27. 27. Within two business days after the sales contract packet has been executed the listing agent will then deliver the earnest money to the selected title company.
  28. 28. Extensions
  29. 29. The extension process will be another change. Extension will no longer be handled by the title company.
  30. 30. Extensions are to be submitted to the Asset Manager five business days prior to the contract expiration with the Extension Form, required fee and lender letter with current status or current proof of funds. The fee must be certified funds made payable to HUD.
  31. 31. What If My Buyer Wants To Change To A Different Title Company?
  32. 32. This process will vary from asset manager to asset manager so if you find yourself in this situation you need to talk to the listing agent and have them walk you through the process.
  33. 33. In the case of HomeTelos you have to have an unresolvable issue with the title company before they will even consider allowing the change.
  34. 34. If you do come upon an unresolvable issue you would then contact your PreClosing Specialist who will decide whether or not to grant the request.
  35. 35. Helpful Tips 1. Have the buyer pick a title company and get the Buyer Select Closing Agent Addendum completed prior to Bid Acknowledgement. 2. Make sure the title company your buyer wants to chose has experience with HUD homes. 3. Both American Title and Willams Title have experience in HUD homes and can be chosen as the title company.
  36. 36. ? ? Questions?
  37. 37. Stormy Crawford 719-540-6469 Stormy.Crawford@wesellmore.net Terrie Elwood 719-540-6468 Terrie.Elwood@wesellmore.net

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