Profile picture for mlo6

Seller is making no progress closing escrow

I'm purchasing a property in the State of California. This home is a HUD Property we openend escrow May 6th to close on June 17th. We got our loan approved and all documentation signed and sent to the seller (HUD) May 17th. We (Loan officer, escrow office and real estate agent) kept contacting the seller because they were not returning the loan docs signed so the loan could fund. Finally they responded back saying because we are getting an FHA loan we needed to have Termite clearance, contractor went to the property and did the work just last week so we got the termite clerance. Now seller is saying that we need to have Pain lead clerance before funding and this is a 6 day process. Escrow is suppose to close on the 17th which is 3 days away. My interest rate is going to expire and the rates have gone up, because of all the delays I as the buyer is paying for the consequences, I dont understand why HUD the seller is taking care of these issues last minute when they had the loan docs for 4 weeks already.

My question is do I have any rights as a buyer? Shouldnt the seller respect that we had a contract that escrow should close within 45 days? Dont they have any penalties like we the buyers do ?

I feel it's unfair that HUD is taking their sweet time and could have us waiting for weeks maybe even months!!

Any responses or past expierences would really help! Thanks!!
  • June 14 2013 - Long Beach
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Answers (3)

Profile picture for mlo6
Yes it's a HUD requirement from HUD for all FHA loans. HUD is the one paying for all the work.. The property did have termites so HUD paid for the property to be fumigated.. Now the have to have lead paint clearance.. If it was the lender requesting this then this would be something that would come out of our pocket but that is not the case.
  • June 14 2013
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Profile picture for wetdawgs
The story you tell is a bit puzzling.  If termite clearance is required for your loan, your lender should be telling you that.  If lead paint clearance required, your lender should be telling you.   Something doesn't add up here, what are your lender and agent up to besides blaming HUD for things they forgot to do?

  • June 14 2013
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I really cannot understand why HUD as the seller is requiring the termite clearance as well as lead. It looks like it is your lender who is requiring for it most especially that you are getting an FHA loan. The seller wiil never require for all these clearances. They are always required by your lender as a condition to close escrow. I suggest you talk to your loan officer since there is a disconnect in the communication process.
  • June 14 2013
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