Foreclosures Reportedly Delayed as HUD Lacks Funds to Pay Closing Agents, Attorneys

June 30, 2011

The Department of Housing and Urban Development (HUD) has delayed the sale of several hundred foreclosed properties because of lack of funds to pay closing fees.

Because of high demand for foreclosures, HUD had insufficient funds to pay attorneys and other closing agents responsible for closing the transactions, according to a report by The Wall Street Journal. HUD currently is negotiating new closing contracts.

More than 540 properties in New England have been affected, including more than 190 in Massachusetts, according to the report. HUD said it’s reviewing the situation to see if there are problems in other states.

According to the report, closings have resumed in Massachusetts, while losing agents and attorneys should expect only temporary delays in other states.

It was reported a HUD official said deadlines for sales will be extended when necessary and will provide information when “funding becomes available for closings, and a closing date will be established as soon as possible thereafter.”

ALTA has been in contact with HUD to find out when the funding issue will be resolved. If you are a closing agent or attorney impacted by this, let ALTA know. Contact Justin Ailes.


Contact ALTA at 202-296-3671 or communications@alta.org.

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents. SoftPro is the nation's leading provider of closing and title software, consistently pushing the technological envelope to pioneer the most powerful and comprehensive closing and title automation software on the market. SoftPro's Award-Winning Software combines cutting-edge technology with outstanding support to make your business more productive, efficient and boost your revenue.