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.