Home Buying in Charlotte>Question Details

jtheller, Home Buyer in Charlotte, NC

Since HUD no longer has an escrow company, The buyer has to pay for the sellers escrow. Is there a way to off set this cost?

Asked by jtheller, Charlotte, NC Tue Mar 12, 2013

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It is so much better now that HUD will allow buyers to close with the closing attorney of their own choice. This is in line with how it has always been done here in NC, which is a "buyer's choice" state, meaning the buyer, not the seller chooses the closing attorney. HUD is interested in only one thing when evaluating bids - they want the bid that will bring them the highest net. You can certainly ask for seller paid closing cost, but it will decrease the net to HUD. If another bid is placed at the same time for less, but the net is higher, HUD will choose the other bid, as it results in a higher net to them.

Kathleen Turner, ABR, CRS, ePro, Certified Paralegal
The Kathleen Turner Realty Group
Keller Williams Realty
0 votes Thank Flag Link Tue Mar 12, 2013

Actually you are getting a little misinformation. When HUD will not use their attorney for the closing they will pay the buyer's side of the closing if the buyer has requested closing costs and there is enough proceeds left over in the closing cost assistance to cover their cost.

the form makes no mention of covering the sellers portion of the attorney fees....

Dave diCecco
Coldwell Banker United
0 votes Thank Flag Link Tue Mar 12, 2013
Good afternoon, JT:
Structuring the purchase of a HUD home is best done using the right lender, a knowledgeable title and closing attorney and an experienced HUD certified broker. There are ways to offset closing costs and to provide for repair escrows, but the strategy/approach varies depending on the buyer. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
0 votes Thank Flag Link Tue Mar 12, 2013
Account for it in your bid. The savings when they were using escrow companies was never significant in NC/GA/SC. We're only talking about a couple of hundred dollars roughly, here. Certain Escrow companies were just so poorly operated that it wasn't worth the savings.
0 votes Thank Flag Link Tue Mar 12, 2013
Give me a call or email me. Need more info to better answer this questions.

Abby Nelson
0 votes Thank Flag Link Tue Mar 12, 2013
Escrow as in the money set aside to pay the taxes and insurance they collect in the loan payment?
0 votes Thank Flag Link Tue Mar 12, 2013
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