Williamson County Real Estate: You shouldn't see your HUD for the first time at the closing table.

You shouldn't see your HUD for the first time at the closing table.

Nashville real estate - I'm going to rant just a minute, because we realtors usually get the blame for this. If it's our fault, it's only because we recommended a bad mortgage company to you. If you decided to use your own mortgage company, it's your fault.

I personally expect to have a final HUD in my hand no less than 24 hours before closing. It gives me time to make sure that all of the fees and expenses are covered by the right parties, and if not, it gives the mortgage company time to make any corrections that need to be made.

This is not rocket science, but it's important. I expect mortgage companies to act in a professional manner.

 

This posting and the contents written here are the intellectual property and opinions of Larry Brewer of Keller Williams Realty. Providing real estate services to clients in Nashville, Brentwood, Franklin, Spring Hill, Green Hills, Murfreesboro, and the middle Tennessee area

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Comments

I think a lot of these mortgage brokers prefer you get the HUD1 at the table so they can get their fees.  If you don't have time to make an argument against their junk fees - they win.

Posted by Dan Quinn, Dan Quinn (Berkshire Hathaway HomeServices PenFed Realty) almost 9 years ago

I agree with Dan.  I usually don't have an issue receving the HUD ahead of time, and if I can't my radar goes up.  At that point, I like to inform my client that something may be wrong. 

Posted by Brian Hurt, ABR, E-Pro (Keller Williams Premier Realty) almost 9 years ago

I've recently been working with a lender who gets the mortgage package to the title company TWO days before closing.  It is so refreshing because as you know that is not typical.

 

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 9 years ago

I also agree that the consumer should have the right to see the HUD before the closing. I know many times that after a CTC is given the loan is scheduled to close as quickly as possible.  Whether it is LO driven or it is a case by case scenario, but regardless the consumer has the right to see what they are going to be faced with before they get to the closing table.

DAC

Posted by Dennis Chanski almost 9 years ago

I am finding it harder lately to get the HUD prior to sigining.  It seems that everyone is tacking on closing fees and since the bulk of my business lately has been REO aquirement, it seems everythng is rushed at the end of the transaction.  Lender chosen title companies seem to be the worst offenders of this.  I recently had a signing a the title company and was unable to get a hold of the HUD until I was there with clients.  Among other things, the lender chosen title comany had tacked on a $100 signing fee!  I almost grabbed the pen out the buyer's hand while I was arguing with the high priced signer.  Now don't get me wrong, if we had requested a signing outside the office I could have possibly understood.   The excuse we were given was that they didn't have enough people, due to their commitment to the lender, for someone to take the time out of their schedule to sign so they had to hire outside for signing. Not my buyers problem!  Only after argung with the office manager and threatening to give the file to the department of financial institutions did they drop the bogus charge. 

Posted by Jason Bracht (Real Living "Property for You") almost 9 years ago

Dan - I hope that's not the real reason they do it, but if it is, it's totally unthical.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Brian - I don't think the mortgage people understand how much stress this causes.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Michelle - Hang on to this lender. Good ones are hard to find.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Dennis - You just don't need any surprises at the last minute.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

This should change with the new RESPA laws set to take place next year.  The HUD must match almost exactly with the GFE.  For now, the clients should still refer to their GFE as some guide.  And if I don't get it before closing and need to fuss at closing, I will do so, with my client's permission. 

 

Posted by Monica Neubauer, Franklin, TN - Realtor, Trainer (Benchmark Realty) almost 9 years ago

Larry - I like to have the HUD in my hands at least 24 hours before closing. I don't know how many times it has been wrong.

Posted by Robert Schwabe, Orange Park Real Estate (EXP Realty) almost 9 years ago

Good luck with that one... I usually see the HUD a couple of hours before closing, and it's not because I didn't ask and ask for it. It's not the title company's fault, it's the lenders'!!!

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) almost 9 years ago

Larry,

There is no excuse not to get us a HUD if the title company and the lender are doing their jobs.  I have been lucky with the lenders I use and the title company.  But it is not only the HUD, there are lots of thngs that must be done between contract and close and having a good lender and title company who communicate with the Reatlor is essential.  Great post.

Posted by Diane Osowiecki, Greater Nashville Real Estate (Diane O and Friends - Benchmark Realty) almost 9 years ago

Monica - I'm hoping it gets better. But I've seen it for years.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Robert - I'm with you. It seems like when I get it early it's always correct, but when I get it at the last minute, it's always wrong.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Donna - My point exactly. I recommend lenders who have the ability to get things done on time. If they can't, I have plenty of other options.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Larry,

Back in the old days we had the HUD a day before closing but not now. I hate that also:(

Posted by Mike Frazier, Northwest Tennessee Realtor (Carousel Realty of Dyer County) almost 9 years ago

Mike - i have high expectations, and so do my clients. That's why they hire me.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Larry, This looks like a familiar conversation.  

I believe there is already a requirement in place that says the client should have the HUD a day in advance. Unfortunately, I don't know too many clients that want to put their closing off a day because the lender didn't or couldn't comply.  I will continue look for lenders that can comply without putting my clients (and me) through the ringer.

Posted by Franklin & Brentwood, TN Homes Mike Nastri - Rodney Kennedy, It matters to us as much as it matters to you. (Keller Williams Realty) almost 9 years ago

Larry - I completely agree with your sentiment re: receiving the HUD with plenty of time to ensure it's correctness.  If I do receive a HUD that is late and or incorrect, I use this opportunity to educate the lender's about the importance of us getting this in a timely fashion.  Hopefully our negative experiences will be the catalyst for the industry to listen to our frustrations and work with us to ensure an on time delivery of this most important document. 

Posted by Gabrielle C. Dodson (Keller Williams) almost 9 years ago

Mike - You know what we all think about this. It makes us look unprofessional.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

Diane -  believe that when we unit in the office, we can get anything done. This will be corrected.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 9 years ago

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