May a buyer request an extension of time to close for a HUD Real Estate Owned (REO) property?

The Closing Agent must schedule a firm Closing Date within the time frame set by the Asset Manager (AM). The AM will identify the time frame for closing in Line 9 of form HUD-9548 as follows:
  • for cash sales, within 30 Days of contract ratification;
  • for sales involving mortgage financing, within 45 Days of contract ratification; and
  • for sales involving a 203(k) product, within 60 Days of contract ratification.  
If the scheduled Closing Date cannot be met, the selling broker or buyer may request extensions of the closing time from the AM before the expiration of the sales contract by:
  • submitting the request for an extension in writing; and
  • if applicable, including an extension fee for the full amount of the requested 15-Day extension, in the form of certified funds payable to HUD.  
The AM will grant extensions in 15-Day increments on a case-by-case basis when extenuating circumstances preclude the buyer from closing as scheduled.
 
When closing does not occur as scheduled and the buyer has not requested and received an extension of time to close, the AM will cancel the sales contract.
 
For additional information please contact the Asset Manager with jurisdiction over the property.  To locate contact information for the Asset Manager please visit the HUD Homestore website at http://www.hudhomestore.com/ and click “Help” in the gray tool bar.

For policy information see Handbook 4000.1 Section IV.B.2.k.ii. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh
 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03387