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Tim Stoll, Real Estate Pro in Dallas, TX

Just passing on some info that I learned......It has come to my attention that from now on the earnest money

Asked by Tim Stoll, Dallas, TX Fri May 1, 2009

on a HUD transaction must be made out to SECRETARY OF HUD. Please write it EXACTLY that way or else you may have to exchange the earnest money.

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Tim,

Every contract (form HUD-9548) in paragraph 3 contains the language "... earnest money deposit shall be held by 'HUD's Designated Closing Agent'". It has been this way for at least a couple of years. In prior years the words were 'Secretary of HUD'. The earnest money check is then made payable to that designated closing agent, for example, Urban Title.

When delivering the contract and earnest money, the package must be delivered to the Closing Agent, not the M&M contractor, for example, Southwest Alliance, within 72 hours after acknowledgment. Since most acknowledgments are rendered on Mondays, your package must be delivered to Urban by Thursday.

If you have questions about the process that your office personnel cannot answer definitively, you should consult the M&M contractor, for example, Southwest Alliance, to get guidance.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Tue May 5, 2009
I'd love to see a souce on that one too!
Web Reference: http://cindihagley.com
0 votes Thank Flag Link Fri May 1, 2009
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
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That doesn't make sense. Are you telling me that HUD has to sign the money back over to the client at closing?
Can you please provide a source?
0 votes Thank Flag Link Fri May 1, 2009
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