Hud escrow holdback loans

[Johnnie Fair]

Has anyone successfully completed an escrow holdback loan on a HUD? We are in the process of closing and still have a lot of unanswered questions. Such as does the contractor have to be licensed and or have a permit with the city or can it be someone that does handyman work on the side that is insured. Thanks.

[Ron S.]

Originally posted by @Johnnie Fair:

Hey Ron any reason why? We’ve already completed the loan, have a contractor, and ready to roll.

Well...if you already completed the loan, sounds like you don't have an issue. Unless its a rehab loan, holdbacks are discouraged because of Murphy's Law. Time is money and vice versa. If you are sitting waiting on a contractor to complete, inspections to be signed off on, repairs to be made and there is a time clause, mistakes will compound issues that may not be spelled out as far as the remedy is concerned in the contract.