Closing Instructions

Closing Agent (BSCA) Training

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Helpful hints:

The closing process may be slightly different than the previous Asset Manager. You must submit your documents five days prior to the scheduled closing date and we will review them for accuracy and return them to you for closing. You may submit the document via the HUD P260 portal or via email. If corrections are required, you will be notified via email.

Sage Acquisitions does not prepare the deed for closing. Please submit the deed customary for HUD sales in your area.

Submitting a pre-closing package:

1. The documents will be printed within 24 hours

2. Documents will be logged in our internal system, which will send correspondence to the closing agent confirming receipt

3. Documents will be assigned to a Sage Closing Specialist for document review

4. If corrections are required, an email will be sent to the closing agent.

5. Upon completion of an accurate closing package, the documents will be executed and returned for closing

A preliminary closing package is required for each closing transaction for pre-approval. The package should be submitted for review no later than five (5) business days prior to the requested closing date.

    • Please upload the preliminary package using your Yardi/P260 portal access to https://www.hudp260.com/Pages/Resources/hudtraining_mm3_portal.aspx.

    • Upload to "Add Attachments" Settlement/Prelim HUD-1 - see page 6 of the Closing Agent Portal User Guide. If you do not have portal access, please contact closings@re-global.com.

    • All deeds need to be uploaded with the preliminary docs and an overnight mailing label.

    • All final closing packages need to be uploaded to the Settlement/Closing Package portal in YARDI/P260 no later than 2 days after closing.

    • All funds are to be wired to HUD within 24 hours of closing and a copy of the bank wire needs to be sent to Closings@re-global.com within 24 hours to prove closing has taken place.

Closing FAQ’s

1. How do I schedule my closing?

Please upload your complete closing package as one attachment into the Yardi Portal. Your closing will be assigned to a specialist for review. You will be contacted directly with any corrections or issues with the closing date.

2. What is the link to access Yardi’s P260 Portal and upload my closing package?

https://www.hudp260.com/Pages/Resources/hudtraining_mm3_portal.aspx

3. What is the number to Yardi’s P260 helpdesk?

805-699-2053

4. Where do I upload the preliminary HUD-1 Package in the Portal?

On the Functions menu, click Add Attachments. In the category field, select Settlement and subcategory select Prelim HUD-1. Please do not use any other category or subcategory. Use of the wrong category may delay your approval.

5. What documents are to be included in the Prelim HUD-1 Package?

HUD-1 Settlement Statement (lender approved), tax bills, signed closing instructions, outstanding invoices, and warranty deed with return address instructions.

6. When should the Prelim HUD-1 Package be uploaded for closing?

Your package should be uploaded no later than five (5) days prior to closing. It is not necessary to request a closing date or schedule your closing with Sage Acquisitions.

7. When and where should I send outstanding invoices to be paid by the seller?

Invoices should be submitted no later than 10 days prior to the closing to your assigned compliance specialist. All bills must be sent in advance of closing. Please refer to your executed contract email for your compliance specialist.

8. Will all closing requests be accommodated?

If the package is uploaded timely and there are no outstanding bills/demands/issues preventing closing, the assigned specialist will work to accommodate your requested closing.

9. Where do I submit any HUD-1 revisions?

Please email them to the HUD reviewer assigned to your file. Revisions should be sent after your initial package is reviewed. Please do not upload multiple packages to the portal.

10. How do I know if the Prelim HUD-1 has been received?

An email notification will be sent to the primary email address on file that is associated with your Title ID.

11. What should I do with the Final Post Closing Package?

Within 24 hours of closing, update the Actual Close Date in P260 and then upload the Post Closing Package to the portal under the Settlement category and then Final HUD-1 subcategory. Do not use any other category.

12. Who do I contact for general closing related questions?

Sage Acquisitions’ Customer Service Department can assist you with most general closing related questions. In the event they cannot, they will escalate to a closing team member that can assist you.

Closing Instructions for HUD Sales

FOR ALL CLOSINGS:

Sage will need the BSCA/Closing Agent to upload to the prelim-HUD subcategory, settlement category in Yardi over 5 business days prior to the estimated closing date.

Please upload the following documents:

  • Settlement statement

  • Tax bills from the locality to justify your pro-rations and tax payments made by HUD

  • Fed Ex Overnight Airbill to your office

  • All property invoices to be paid on the settlement by the seller/HUD only

  • State required forms for recordation that require execution. HUD will not sign attorney, lender or title company private legal documents.

  • Deed for execution (no quit claim deed)(we have no template, please use a deed applicable to your state that is ideally limited or special warranty)(please make signer line state Designated Signer for the Secretary of Housing and Urban Development).

A preliminary closing package is required for each closing transaction for pre-approval. The package should be submitted for review no later than five (5) business days prior to the requested closing date.

    • Please upload the preliminary package using your Yardi/P260 portal access to https://www.hudp260.com/Pages/Resources/hudtraining_mm3_portal.aspx.

    • Upload to "Add Attachments" Settlement/Prelim HUD-1 - see page 6 of the Closing Agent Portal User Guide. If you do not have portal access, please contact closings@re-global.com.

    • All deeds need to be uploaded with the preliminary docs and an overnight mailing label.

    • All final closing packages need to be uploaded to the Settlement/Closing Package portal in YARDI/P260 no later than 2 days after closing.

    • All funds are to be wired to HUD within 24 hours of closing and a copy of the bank wire needs to be sent to Closings@re-global.com within 24 hours to prove closing has taken place.

Wire Transfer Form (SAMS 1103)

  1. HUD will pay to record the Deed

  2. Real Estate Commission as per sales contract – Line 6.

  3. All transfer taxes are paid by the buyer; they are NOT split.

  4. Insert the HUD FHA number in Section G.

**The above charges are the only fees paid by HUD unless, on the sales contract, on line 5, there is a credit amount which HUD will contribute towards the buyer’s closing costs. Show the line 5 credit on page one as a credit from Seller to Buyer. Include a full itemization on a separate sheet, showing which items are being paid by the line 5 credit.

HUD-1 Preparation: For items such as taxes, condo/HOA fees, water bills, etc., if any penalties and/or interest charges are reflected on any of the final bills, such penalties must be reflected on the HUD-1 , as a Seller’s expense, as a separate line items in the appropriate section. For example, if a final water bill is obtained and the bill reflects overdue charges, you would show “Water Bill” on one line and “P&I Water Bill” on a separate line. Note: HUD does not allow water adjustments. Note: The Seller will not pay any additional funds outside of closing. Failure to collect the appropriate fees (e.g., recording fees, water bills, taxes, assessments, HOA invoices, etc.) could result in a loss to your title company. It is your responsibility and the position of the seller that liability rests with the buyer’s title company to ensure these fees are correct and complete at the time of settlement.

To Schedule Closing: Contact the Asset Manager 10 business days prior to settlement with the requested time and date of closing in order to obtain a Deed signed by HUD. Also needed:

· Copy of current Lien Certificate with Violations Report

· HOA/CONDO accounts to be paid for by HUD – and condo pro-ration shown on HUD-1 must be included in the required typed pro-ration stmt.

· Water Bill; any water pro-ration shown on HUD-1 must be included in the required typed pro-ration statement.

· Tax Bill and Documentation on other anticipated charges to HUD (i.e. violations, etc.)

· Pro-ration Sheet (showing how pro-rations are calculated on the HUD-1): put on your letterhead AND complete itemization showing which cost items on the HUD-1 are covered by any line 5 credit to buyer.

· HUD is exempt from the rental registration fee.

· Copy of current Maryland Insurance License of settlement officer.

***NOTE: A FINAL HUD 1 SETTLEMENT STATEMENT MUST BE WITH THE ASSET MANAGER 48 HOURS PRIOR TO CLOSING. IF A PROPOSED HUD-1 IS NOT SUBMITTED 48 HOURS PRIOR TO SETTLEMENT, YOUR CLOSING MUST BE RESCHEDULED FOR ANOTHER DATE AND TIME. Please remember that once the HUD-1 has been approved, HUD will not allow any changes to be made to HUD’s side of the settlement sheet.

At the closing HUD requires the following:

  • ALL PARTIES MUST ATTEND THE CLOSING, (i.e. Purchasers, Title Company Settlement Officer) Your settlement officer MUST be licensed and have full authority to sign all documents. No Power of Attorneys allowed for the purchaser.

  • Documents to be executed by all parties at closing.

  • Copy of photo ID(s)

  • WIRE for HUD’s Proceeds: Note: Wires must be received in the correct amount on the day prior to, or day of closing. No Documents will be released until the wire is received and it will be at your expense to collect the documents (Deed) in these cases. The Closing will be cancelled if the wire is not received on the day of closing.

  • Copies of all disbursements checks paid for by HUD

HUD’s Requirements and Timelines:

1. TEN DAY NOTICE: At least 10 business days notice is required to schedule a closing with The Asset Manager in order to have a signed deed available.

2. Twenty-four hours: HUD requires the submission of the completed HUD-1 for review by the M&M contractor at least 24 hours before closing.

3. AT or PRIOR to Closing: HUD requires receipt of wire transfer of the sales proceeds AT or PRIOR TO the closing.

4. THREE DAYS: HUD requires a copy of the recording receipt for the executed deed within three (3) business days of the earlier of the closing, or of your receipt of the executed deed.

How to show Prepaid Extensions on the HUD-1

If your buyer has prepaid extensions, those funds are being held by the Asset Manager.

Here is how you show the extensions on the HUD-1.

Example: Your buyer has paid for two extensions at $375.00 each. The extensions extend the contract to the 30th. However, you are closing on the 25th. So, your buyer gets a refund of 5 days.

Lines 111 and 411: Show “Extension Fee” ----------------------------- $750.00

Line 205: Show “Extension Fee Paid”----------------------------------- $750.00

Lines 208 and 508 Show “Refund 5 days ext fee @ $25./day”------- $125.00

MD DEED TEMPLATE

GOVERNMENT AGENCY TRANSFER

NOTE: THIS IS A GOVERNMENT AGENCY TRANSFER, PURSUANT TO SECTION 12-108 OF THE MARYLAND CODE, AND IS EXEMPT FROM TRANSFER TAXES

THIS DEED

Tax Account Number: Tax ID# (tax ID/parcel number)

HUD/FHA Case Number: (Case Number)

Made this ___________ day of _________________________, 2013, by and between Shaun Donovan, SECRETARY, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, OR HIS SUCCESSORS, Grantor, party of the first part, and (purchasing party name), Grantee, party of the second part:

WITNESSETH, that in consideration of the sum of (Longhand purchase price, e.g., One Hundred Forty One Thousand and 00/100) Dollars, (Shorthand purchase price, e.g., $141,000.00), receipt of which is hereby acknowledged, the said party of the first part certify under penalties of perjury as the actual consideration paid or to be paid, including the amount of any mortgage or deed of trust outstanding, the said party of the first part does grant and convey unto the said party of the second part, in fee simple, as (ownership type, e.g., sole owner, joint tenants), all that property situate, in (city name) City, State of Maryland described per the attached Exhibit A.

SEE EXHIBIT A FOR LEGAL DESCRIPTION

Said property being vested in FEE SIMPLE.

SUBJECT to covenants, easements and restrictions of record.

TOGETHER with the buildings thereupon, and the rights, alleys, ways, waters privileges, appurtenances and advantages thereto belonging, or in anywise appertaining.

TO HAVE AND TO HOLD the said described lot of ground and premises to the said party of the second part, (purchasing party name), his/her personal representatives/successors and assigns as (ownership type) in fee simple.

AND the said party of the first part hereby covenant that he/she has not done or suffered to be done any act, matter or thing whatsoever, to encumber the property hereby conveyed; that he/she will warranty specially the property hereby granted; in that he/she will execute such further assurances of the same as may be requisite.

WITNESS the hand and seal of said grantor.

SECRETARY OF HOUSING AND URBAN DEVELOPMENT

By: Ofori & Associates, PC, its true and lawful delegate, being the Prime Contractor for Contract #C-OPO-23630 for the U.S. Department of Housing and Urban Development under vested authority and by virtue of the Federal Laws recited at 70 F.R. 43171 (04/18/13) and as required by said Federal Laws to be maintained its website at: www.hud.gov/offices/hsg/sfh/reo/reo_home.cfm

______________________________________________

Ofori & Associates, PC

10 Columbus Blvd., 3rd Floor

Hartford, CT 06106

STATE OF ______________________________,

COUNTY OF ____________________________, TO WIT

I Hereby Certify, That on this ____________________ day of _________________, 2013, before me, the subscriber, a Notary Public of the State and County aforesaid, personally appeared _____________________________________ known to me (or satisfactorily proven) to be the person who executed the foregoing instrument, by virtue of the authority vested in her/him by the above cited authority, and acknowledged before me that she/he executed the same as for and on behalf of the Secretary of Housing and Urban Development, of the purposes therein expressed.

The foregoing instrument was acknowledged before me this ______________ day of _________________________, 2013 by __________________________.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

My Commission Expires: ____________________________________

NOTARY PUBLIC

THIS IS THE CERTIFY THAT THE WITHIN INSTRUMENT WAS PREPARED BY OR UNDER THE SUPERVISION OF THE UNDERSIGNED, AN ATTORNEY DULY ADMITTED TO PRACTICE BEFORE THE COURT OF APPEALS OF MARYLAND.

____________________________________

(Settlement Agent Attorney)

Grantor Address: 100 Penn Square East, Philadelphia, PA 19107-3380

Grantee Address: (Purchasing Party address)

Title Insurer: (Title Insurer)

EXHIBIT A

(COPY AND PASTE EXHIBIT A FROM PROVIDED HUD FINAL TITLE PACKAGE HERE)

_________________________________________________________________________

Post closing package:

Here is a list of documents that should be included:

  • The original signed Final HUD-1

  • Evidence the deed was delivered for recording or a recorded copy

  • Copy of the Wire Confirmation

  • Copies of all applicable invoices or receipts of disbursements