Thomasina, Real Estate Pro in MD,

HUD-1 approved, now buyer want to change title company. Short sale was based on using this title company.

Asked by Thomasina, MD, Sun Dec 28, 2008

I have a HUD-1 that has already bee approved by the lender. The buyer now wants to change title companies after the lender has already approved the HUD-1. What happens now?

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Hello Thomasina, WOW you have an approved HUD1 by the lender. First of all congrats on that. Why does the buyer want to change, Im sure the title company would work on the numbers if it's a numbers issue. I dont think the buyer or the buyer understands how hard it's to get an approved short sale. Please make sure your agent is stressing the importance of moving forward. The buyer must also know that title work has been completed and many other fees will have to be covered by someone. Good luck and if I can be of any help please email me at

Mike Benton
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2 votes Thank Flag Link Sun Dec 28, 2008
Ask WHY. why would they want to upset the apple cart at this point, unless they have a strong reason.
The side with the more compelling reason wins :), or the side with the most to lose should be more flexible,
or follow the golden rule.... "He who has the gold,....RULES!"

Rick Riley
0 votes Thank Flag Link Sun Feb 22, 2009
This shouldn't be too big of an issue....Normally in PG county contract, the buyer has the right to choose the title company UNLESS he/she has already signed and agreed to the banks contract to use their designated title company....Most banks won't care too much about this though...As long as the deal gets settled.

Congratulations on your sale!
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0 votes Thank Flag Link Sat Feb 21, 2009

I know the buyer's agent doesnt understand this process or try to educate the buyer, well as said that it's ok to use buyer's side title, all you have to do is coordinate with their title company and forward your approved hud1 to the buyer agent and their title company to match exactly the same numbers with their hud1 or lower but make sure the pay-off amount for the lender should match or higher than your approved one. And also close on time according to the lender time line. The lender will not care as long as they get their pay-off amount and nothing additional from their side, but you can double check with your lender also (I had the same situation and lender didnt create any problems)..... Good luck on your approved short sale.

Blaison Samuel
Certified Short Sale Specialist
0 votes Thank Flag Link Sun Dec 28, 2008
"Short sale was based on using this title company"
Just ask for a new approval with the new title company hoping that the seller agrees.
It is just a minor setback.. .
0 votes Thank Flag Link Sun Dec 28, 2008
It depends if it is a preliminary hud or the final hud with numbers from the buyers mrotgage company. It would have had to be written into the sales contract that the buyer would have to use a specific title company. if it is the preliminary hud submitted for approaval a new hud would have to be done either way with the buyers mortgage information, the sellers side would not change much except for any property tax prorations, a new title company should be able to work with the same numbers. check your contract for what it states.
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0 votes Thank Flag Link Sun Dec 28, 2008
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