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Why would the seller not sign the HUD1 form?

We are trying to buy a foreclosure property, through auction.com. The seller is BofA, and the auction company is their agent. We had a closing date of 2/15/12, and everthing was in place - signed deed, funds wired etc. Here we are, and the seller still has not signed the hud1, and we are not closed. We cannot understand why signing the hud1 should be such a long process. We are paying cash for the home, so there is no financing involved. Purchase price and buyers costs match what the Purchase agreement states. Sellers agent keeps saying "their working on it". Working on what?

We do not want to pull out of the transaction, but neither do we want to wait months on end. The house is has been vacant since july 2011, and is beginning to develop a mold issue.

Any ideas on how we can speed this up? Thank you.
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February 18 2012 - Northwest
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October 24 2013
You are simply caught in the bottleneck of REO's (bank foreclosures) that are sitting on someone's desk.

The banks have several hundred THOUSAND REO's going on any one day, however, only a limited number of asset managers.

Likely, your file is stuck at the bottom of someone's pile!    You're at the HUD1 (settlement) stage which is the VERY LAST stage.

Hang in there, it will happen!
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February 25 2012
Did you finally get it closed, you mentioned you would let us know what happened. It was an interesting story, I understand if you dont want to post it here. I hope it turned out well for you though.
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February 24 2012
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We are in the same boat, trying to buy in Albuquerque. Our funds are approved, underwritting is complete yet we are on our third extension. Can't seenm to see any sense of urgentcy from the seller. Just waiting for the Hud 1, then the final appraisal can be done and we are tols pur loan can close in two days. Our problem is if our financing expires, we will have to start all over with that. Its a shame these banks just dont care if the house sells or just sits empty..its a big joke.
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February 22 2012
Staying on top of it... being polite and persidstent... understanding who the person with authority at BofA is...

Also sometimes the escrow company is the party who holds things up, because they are doing transactions in bulk and for a low price... so they are really not vested in one particular deal... is just a sign of where the market is...

be patient and good luck!

RonE
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February 22 2012
Did the settlement agent send a HUD to the seller 5 days prior to settlement?  Many sellers like Fannie or other banks want to see the completed HUD 3 - 5 days prior to settlement to allow them time to sign the documents and overnight the deed to the settlement agent's office.
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February 19 2012
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Incidentally, I should also mention that the listing price info looks rather strange as well, The property address is 6385 blue arrow 32446, and it is listed on zillow. What I found strange was the nearly 50% drop in asking price while listed with the original listing agent (who is now our buyer's agent). Nearly 50% reduction at one time, within two or 3 months?
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February 19 2012
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Thanks to you all!

The growth issue(s), according to the home inspector, are surface, and due to improper ventilation over an extended period of time. It is unclear exactly how long, but we do know the home has been vacant and had no ventilation system for at least 8 months. There is no sign of leaking. Perhaps the previous owner decided to wet the wall(s) or something. It is also possible that the home was occupied, but without adequate ventlation for a significant amount of time prior to the foreclosure.

Whether a hud1 is required for a solely cash purchase or not, here in Fl., I do not know. What I do know is that the esrow agent (in FL) will not close escrow without it being signed by the seller.

It seems pretty odd that all other doucuments have been signed and delivered to the escrow agent prior to the closing date (2/15/12), and yet the HUD1 is the document preventing the closing of Escrow (fully funded escrow, I might add). We are aware that there were multiple mortgages on the property, and therefore there will be some possible issues relating to who will get what from our purchase amount. It would not seem this issue should affect us, or delay the closing of escrow.

We also considered the "robo-sign" possibility. Perhaps the pre-closing docs have been robo-signed, and we now need original signature(s) for recording etc.? Everthing is being done by e-mail, so we don't have any origial signature(s), at this point any way. For recording purposes, an orignal signature and notarization will be required, correct? And I would think the bank would not even consider robo-signing a HUD1, cash sale or not.

Additionally, the parties are spread out across the country. We and the Escrow agent are in FL, but 2 different time zones. The seller(s) and agent are in CA. And the trustee for the mortgage holder is located in TX and CA.

Our agent is (or was) the listing agent. The home was originally listed by/with our agent, and suqsequently removed and then listed by the auction company (seller's agent). Based on what our agent has done this far, I am looking at "if you want it done right, do it yourself". I will address this particular issue post closing!
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February 19 2012
If you're paying cash a HUD-1 is not required.

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February 19 2012
Why is the house beginning to develop a mold issue? Is there rain coming in? Is it leaking? Most homes are winterized. If indeed it is developing some sort of organic growth issue, you might be wise to identify which one it is and then decide if it is healthy for you to go forward and purchase this home.
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February 19 2012
Welcome to the nightmare that is dealing with banks. Your agent (if you have one) may be able to assist if they have some connections at BofA, or by applying pressure to the listing agent. If you're going it alone, well, you're pretty much at the mercy of the bank and listing agent.

Don't try to apply common sense and logic to a bank, those things don't exist in their universe.
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February 19 2012
Any ideas on how we can speed this up?

Unfortunately there's nothing you can do to speed up the process. The final docs on bank owned are often signed by higher ups @ the bank which can slow the process - especially if the lender is out of town. To me, B of A is was the worst to deal with of all the banks that I have worked with on sales. But we still closed - they're just sloooow.

About all you can do is have your agent check daily with the listing agent to make sure the process is going forward.
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February 18 2012
 
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