Page 2 of 4
For properties covered by an Asset Control Area (ACA) Agreement, the Asset Manager, will provide
additional closing instructions.
CLOSING COSTS: HUD will pay up to the amount on Line 5 of the executed sales contract, or up to 3% of
the sales price, whichever is less, towards reasonable and customary closing costs and the amount shall
be annotated on the HUD 1/Closing Disclosure in accordance with RESPA. Any unused portion will be
credited to HUD’s proceeds. (Customary Loan Origination Fee is up to 1% of the mortgage; 1.5% on a
203(k) loan)
Buyer Select Closing Fee: The purchaser is primarily responsible for any and all closing fees up to the
maximum allowed per State Law and Regulatory requirements. The buyer may apply amounts listed on
Line 5 of the sales contract for payment of closing fees.
Recording fees for the Special Warranty/Grant Deeds transferring ownership from HUD to the buyer as
stated on the executed sales contract, for the second Note/ Deed of Trust, if required for special HUD
programs, and for special addendums, if required, such as Land Use Restriction Addendum, are the
expense of the buyer. This expense may be covered from funds on Line 5 of the executed sales contract. If
the buyer did not request funds on line 5, the amount to cover the cost of recording shall be collected
from the buyer at closing.
HUD-1/CLOSING DISCLOSURE PREPARATION: You must accurately prepare the Preliminary HUD-1 or
Settlement Statement/Closing Disclosure and provide it to Asset Manager at least 5 business days in
advance of the scheduled closing date for their review, approval, and return prior to closing. This can be
accomplished electronically.
DEED PREPARATION: You must prepare a Special Warranty or Grant Deed (where applicable) and provide
it to the Asset Manager at least five (5) business days prior to the scheduled closing. The Deed can be sent
to Asset Manager electronically. Asset Manager will execute, notarize, and return the original Deed via
overnight delivery. Include a return address which is accessible by their overnight mail carrier.
EXTENSIONS: If an extension is required, the purchaser’s real estate broker will submit the required
closing extension request form, along with the extension fee, to the Asset Manager prior to expiration of
the sales contract. The Asset Manager will provide you with an electronic notification of the approval and
copy of the executed extension agreement which will provide you with the new contract expiration date.
The Asset Manager will also provide the amount of the extension fee that was collected. In no case shall a
closing take place on an expired contract.
WIRE PROCEEDS: You must wire proceeds to the US Treasury via FEDWIRE the day of but not later than
the next available banking day after closing, ensuring the amount matches that of the executed HUD-
1/Closing Disclosure. The Asset manager will provide specific wiring instructions, including the form to be
used.
DEED RECORDING: You must ensure the deed is delivered for recording to the appropriate county
recorder’s office no later than one (1) business day after closing.
NOTIFICATION OF CLOSING: You must notify the Asset Manager at
3PclosedHUDs@blbresources.com via
email on the day the closing has or has not occurred.
CLOSING PACKAGE: You must deliver a complete closing package to Asset Manager not more than three
(3) business days after the closing is completed. The post closing package shall include:
