Gardi, Haught, Fischer & Bhosale LTD.

Your Illinois Hud Closing

Closing Your Hud Home Transaction

Congratulations! You now have a signed sales contract confirming that you have purchased a HUD home. What happens next? HUD’s Asset Manager (AM) contractor Alpine-First Preston signed your sales contract and will assign the closing of your transaction to Gardi, Haught, Fischer & Bhosale LTD.

After a closing is assigned to Gardi, Haught, Fischer & Bhosale LTD, we conduct a title search to ensure that when you close you are conveyed clear title to your new property.

Gardi, Haught, Fischer & Bhosale LTD then starts processing your transaction to get it ready to close by contacting local utilities and municipalities to ensure that there are no outstanding bills or liens against your property. If your property is a condominium or part of a homeowner association we contact them to see if there are outstanding bills against your property so they can be satisfied prior to or at the closing. Along with our superior knowledge of HUD transactions, our service for processing your HUD deal is completely FREE!

What is a HUD Home?

A HUD home is a 1 to 4 unit residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim.

What is a closing and what do I need to bring?

Closing is when you sign all the documents related to the transaction. There can be as many as 10 or 12 people in attendance, including the closing agent, listing real estate agent, selling real estate agent, their respective brokers, buyer’s attorney, and loan officer.

You can expect to sign between 10 and 75 documents, depending on your lender and the complexity of the transaction. Though you have always been taught to read everything you sign–which is still excellent advice–to read this much material, absorb it, and understand it while there are as many as 10 other people in the room would be difficult at best. An experienced real estate attorney has read, absorbed, and understands all of these documents, and can explain them to you in clear and concise language. Many of these documents have a significant legal impact on you, and you deserve to know what you are signing. Without the experience of a real estate attorney, most buyers hardly know where to start. Only your real estate attorney is ethically bound to have an undivided loyalty to you. He will not gloss over important details like prepayment penalties or restrictions on selling the property in the interest of “getting it closed.” The same cannot be said for closing agents, title company representatives, or employees of the lender.

As far as what to bring, check with your loan officer to be sure. Common items required for purchasers include an insurance binder and paid receipt for your property insurance, current paystubs, original inspections, including a wood destroying insect (termite) inspection, and government issued photographic identification, such as a driver’s license. It is common for closing agents to require certified funds from the purchasers to close. You should also make appropriate arrangements with utility companies, though this generally will not affect the closing. In some counties, you should go to the county assessor’s office after closing to sign up for owner-occupied or homestead exemptions for your real estate taxes. This will generally save you up to several hundred dollars per year. Ask your attorney for specific information for your county.

What is a closing and what do I need to bring?

The short answer is no. The lender is only concerned that there are no liens against the property which may have priority over the lender’s mortgage. Issues such as possession, easements and restrictions which may affect your use of the property, and defective mechanicals are not a concern of your lender. Additionally, many lenders use title companies rather than attorneys to close their loans. Only attorneys may dispense legal advice and representation.

Should I get a home inspection?

HUD does not warrant the condition of its properties and will not pay for the correction of defects or repairs. Since the new owner will be responsible for making needed repairs, HUD strongly urges every potential homebuyer to get a professional inspection prior to submitting an offer to purchase.

What is an Owner’s Policy?

A lender’s title insurance policy does not protect you. Similarly, the prior owner’s policy does not protect you. If you want to protect yourself from claims by others against your new home, you will need an owner’s policy. When a claim does occur, it can be financially devastating to an owner who is uninsured. If you buy an owner’s policy, it is usually much less expensive if you buy it at the same time and with the same insurer as the lender’s policy.

What can I do to expedite the closing?

In the Chicago area and the Collar Counties many municipalities have requirements that are the buyer’s responsibility such as an inspection or transfer stamp. Make sure your real estate broker is familiar with the requirements. As the buyer, it is your responsibility to ensure that your lender is ready to close. While you have been pre-approved for a loan, this does not mean your lender is ready to fund the transaction. You should contact your lender as soon as you have a signed sales contract to see what else they need from you to be ready to close. Many closings have to be rescheduled because the lender was not ready.

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Client Success Stories


"I couldn’t be more grateful for the help and care I received from this firm. I would highly recommend them to anyone looking for help for personal injury!"

RE/MAX – Tim Winfrey

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