Now What is HUD Up To?

Received by email today concerning a HUD owned home we have an accepted bid on;

PEMCO has reviewed your contract for the above referenced property and has approved it for signature; however, HUD has issued a stop work order in the State of Missouri.  This stop work order only impacts new contracts being assigned to the current HUD Closing Agent.  Once HUD has advised PEMCO to proceed with new assignments to the Closing Agent, we will execute your contract and email it out immediately. 

Please note the time allotted for closing does not start until PEMCO has executed your sales contract.  At this time, we are unsure of when the stop work order will be released.  We will continue to notify you as information becomes available.

So what does this mean, exactly?  No time frame what-so-ever?  You just get to keep the $1,000 EMD until you decide differently?   Hell of a way to run a business.    Oh, I forgot.  Government doesn’t know how to run a business yet constantly offers advice on how we should.

9 Comments

Filed under Real Estate Investing

9 responses to “Now What is HUD Up To?

  1. J

    There has been a stop work order in effect for Massachusetts and New Hampshire for about 2 months now. No one wants to tell anyone anything and there is no time frame set to get a new contract signed.

    • We won a bid on March 25,signed the docs and submitted our $1K retainer and haven’t closed on our deal yet. We are in NH and all we know is the contract for the closings has been awarded but the stop work order is still in effect. We’ve been informed HUD wants to be certain the winning bid will not be contested. No one has been able to give us a time frame as to when we will be closing on our property…

  2. J – I have received several phone calls and about a dozen emails regarding this post and HUD. Isn’t it amazing that they want all the contracts annoyingly quick, demand everything be overnighted at $32 a pop and demand the EMD but won’t tell us a damn thing as to why or how long this will last.

    What a joke. And our health care is next! 🙂

    • J

      hahah that is EXACTLY what has happened to me and another person I know in NH. The funny thing is – the stop work order was already in effect when we put the contract in on a house! We were told after we wanted to close that there is a stop work order. I love it!! Appraisal fees, rate lock fees, fees fees fees all of which are not being returned of course. I LOVE HUD HOMES.

  3. I’ve been hearing that the reason is that they ran out of contract with their title companies. If this is true, it’s just pure incompetence.

    But then again, I have a delay with another closing because the bank hasn’t produced the Deed. When queried, the closer says this is true with “hundreds” of properties with the same bank. They hurry up, get them under contract, collect your emd and then there is very little communication.

  4. ron long

    here is another story im ready to close on a property from hud in ct and cant? anyone have a clue to whats going on? even boa doesnt have a clue or say they dont? all i know is im stuck with no answers to who what or why this is going on?

  5. We are back up and running here in Kansas and Missouri. Luna & Luna is now the title company….out of Garland, TX. That makes sense, right?

    Anyway, they probably just didn’t have their contracts negotiated. Can’t wait for my first health care debacle. 🙂 “Mr. Lengquist, you need open heart surgery but we failed to negotiate the rates ahead of time. You need to sit in our waiting room indefinitely until we get something worked out.”

  6. Karlene

    Signed a HUD contract April 13th in Connecticut and still waiting to have the SWO lifted. Appraisal and rate lock are a thing of the past 😦

  7. Kim

    Chris a few years ago we were awarded the HUD Bid. We put the package together and the EMD check and overnighted to their title company. A few days later we received word they had fired the title company. I asked for our EMD check back and they didn’t really know where it was. About 3 months later they hired a new title company – Security Land Title Here in KC, found our check, and closed it. But of course they can’t work with a well known title company with the facilities to handle their volume, they must work with brand new little bitty companies that do not have the ability to handle all their transactions.

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