Acknowledment of receipt of Hud1?

Question

Exactly when do I present the Seller with a copy of the Hud 1 and then have then sign this acknowledgment receipt document? Here In Colorado we have a 3 day right of recision prior to me getting a POA or deed, or paying to make the purchase contract legal.(IF they are facing foreclosure) So when would I get this hud1 to them??

thanks,

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thanks,

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Christian Malesic · Answer

Unless you want to work & re-work the DRAFT HUD-1 wait until 1 day prior to closing, 2 days at the most.

There will be prorated items directly related tot he closing date such as: property taxes and rent (if applicable).

My experience is that the HUD-1s are wrong about 50% of the time.  They contain a ton a detail and everyone has their little piece represented on that form.

As to release info: surely.  Get them to give you the key info AND to authorize you to have it / act on their behalf.  Thus, the lenders & atorneys will work directly with you, cutting out and extra middleman.

William Sageser · Answer

Yeah I'm familiar with all of the disclosures and I have a good option contract specific for Colorado short sales that I use.  I guess I had one too many contracts in my contracts folder and it was throwing me, probably something a title company would use. Hey I was wondering what your thoughts might be regarding the authorization to release information. Is that something I could get signed up front with the purchase contract and then get it faxed to their lenders loss mitt dept. to get things going while I wait for the ink to dry?

thanks again,

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Jon Holdman · Answer

I'm not aware of any particular timing w.r.t. the HUD-1.  Its the purchase contract that's the key thing.  And the disclosures required by the Colorado Foreclosure Protection Act.  If you get those correct (all the correct forms, in the right fonts with all the proper disclosures and forms for rescinding the contract), then I don't think the HUD1 matters.  Normally that changes hands at the closing.