Effective October 28, 2013, HUD implemented a Buyer Select Closing Agent Program in Colorado. This slideshow contains important information on changes to completing the contract packet and how earnest money will be handled.

1. The Buyer
Select Closing
Agent Program

2. What Does This
Mean For You And
Your Buyers?

3. Your buyers are now able to select the
title company of their choice.
You now have a new contract addendum
to complete and are responsible for
ensuring the earnest money is delivered
to the listing agent.

4. What Has Changed?
What Hasn’t?

5. Closing
Agent Fee
Paid
The Closing
Agent Fee is no
longer paid for
by HUD. This
is now a buyer
expense.

6. The closing agent fee can be included in
closing costs paid by the seller (Line 5 of
the purchase contract).
Please keep in mind seller paid closing
costs are limited to 3% of the purchase
price.

7. The bidding process hasn’t changed.
Just remember if you don’t have any or
enough funds on Line 5 your buyer will
be paying for the closing agent fee out of
pocket.

8. The first difference you’ll notice is in
completing the contract packet. On the
second blank of both Line 3 and Line 9 of
the sales contract you will enter the title
company of your buyer’s choice.

10. Your buyer must have a title company
chosen at the time the contract packet
is being completed. Contracts with
“Buyer Selected Closing Agent” or “TBD”
on Lines 3 and/or 9 of the Sales Contract
will not be accepted.

12. The next difference will be a new
addendum, The Buyer Select Closing
Agent Contract Addendum, that must be
turned in with every contract packet.
This addendum will vary depending on
the Asset Manager so make sure you are
going to their website and completing the
packet and addendum found there.

13. Buyer Select Closing Agent Contract Addendum
This form must be completed in its entirety and submitted with the actual purchaser signed sales contract.
This contract to purchase is eligible for participation in the HUD “Buyer Select” pilot closing agent Program. It is the responsibility of
the purchaser to choose their own escrow/closing company. HUD will not pay for the escrow/closing service. It will be the
responsibility of the purchaser. Please note Line 9 of the HUD-9548 Sales Contract must contain the buyer selected closing agent
listed on this form.
I/We authorize HomeTelos, L.P. (Asset Manager) to release a copy of the sales contract and all applicable addenda/
amendments for the following property to the closing agent/escrow company listed on this form.
FHA Case Number ____________________________________
Property Address:
___________________________________________________________________________________
Purchaser’s Name ____________________________________________________ Phone Number ______________________
Purchaser’s Name _____________________________________________________ Phone Number ______________________
Purchaser’s Name _____________________________________________________ Phone Number ______________________
Purchaser’s Name _____________________________________________________ Phone Number ______________________
Selling Broker Name _____________________________________________________ Phone Number ______________________
Listing Broker Name ______________________________________________________ Phone Number ______________________
Title Company/Closing Agent/Escrow Company Information
Company Name_________________________________________________________ Phone Number ______________________
Primary Contact Person __________________________________________________ Phone Number ______________________
Secondary Contact Person _________________________________________________ Phone Number ______________________
Office Address__________________________________________________ City________________________________________
State_____ Zip _________
Email Address_____________________________________________________________________
Has this closing/escrow company previously registered with HUD?
Yes
No
If yes, please enter HUD Title ID# if known _______________________________
__________________________________________ _________
Purchaser’s Signature
Date
_________________________________________ __________
Purchaser’s Signature
Date
__________________________________________ _________
Purchaser’s Signature
Date
________________________________________ ___________
Purchaser’s Signature
Date
___________________________________________________________________________
Seller’s Signature
____________________
Date

14. This addendum provides HUD with the
buyer’s chosen title company’s contact
information.
If the selected title company has never
closed a HUD transaction under the Buyer
Select Program they will be assigned a
HUD Title ID Number.

15. HUD Title ID Numbers are only assigned
when a title company is chosen by a
buyer and then only for that specific
office.
Title companies cannot pre-register.

16. Acceptable title companies must:
1. Be licensed to do business in the state
the property is located in.
2. Be regulated by the State Insurance
Commission or similar state agency.
3. Be covered by E&O Insurance of at
least $1,000,000.
4. Shall provide a Closing Protection
Letter when requested.

17. 5. Can’t currently be disbarred,
suspended or otherwise excluded
from participating in HUD transactions
or federal programs.
6. Can’t have immediate family members
or business associates with a financial
interest in the property involved in the
closing process.
7. May not violate Title VIII of the Civil
Rights Act of 1968.

18. The HUD Title ID Number is linked to
the title company’s address not the title
company itself. Each office address will be
assigned its own HUD Title ID Number.

19. Property Address:
___________________________________________________________________________________
Purchaser’s Name ____________________________________________________ Phone Number ______________________
Purchaser’s Name _____________________________________________________ Phone Number ______________________
Purchaser’s Name _____________________________________________________ Phone Number ______________________
Purchaser’s Name _____________________________________________________ Phone Number ______________________
Selling Broker Name _____________________________________________________ Phone Number ______________________
Listing Broker Name ______________________________________________________ Phone Number ______________________
Title Company/Closing Agent/Escrow Company Information
Company Name_________________________________________________________ Phone Number ______________________
Primary Contact Person __________________________________________________ Phone Number ______________________
Secondary Contact Person _________________________________________________ Phone Number ______________________
Office Address__________________________________________________ City________________________________________
State_____ Zip _________
Email Address_____________________________________________________________________
Has this closing/escrow company previously registered with HUD?
Yes
No
If yes, please enter HUD Title ID# if known _______________________________
__________________________________________ _________
Purchaser’s Signature
Date
_________________________________________ __________
Purchaser’s Signature
Date
__________________________________________ _________
Purchaser’s Signature
Date
________________________________________ ___________
Purchaser’s Signature
Date
___________________________________________________________________________
Seller’s Signature
____________________
Date

20. When completing this addendum it is
very important to speak with the title
company to find out how their name and
address should be. This determines how it
will show up on the HUD 1
If they have multiple offices make sure
you have the correct address for the
office you are using.

21. The other important piece of information
you need from the title company is who
is handling their HUD contracts. This will
be the Primary Contact Person. This is not
your closer, but the one person the title
company has designated to be in charge
of all HUD contracts and insure all of
HUD’s requirements are being met.

22. This Primary Contact Person will also be
the liaison between HUD and the closer.
All communication will be going through
this person.

23. The Secondary Contact Person will be
the Primary Contact Person’s backup and
will also need to be well versed on HUD’s
requirements.

24. If the title company fails to adhere
to HUD requirements their HUD Title
ID Number can be revoked, financial
penalties may be assessed and they
could be banned from closing HUD
homes.

25. The next change is the earnest money
check. It still must be certified funds, but
you do not submit it with your contract
packet. Instead you submit a copy of the
earnest money check.

26. The check is made payable to the closing
agent selected by the buyer or the buyer’s
name. (Unified Title or John Doe)

27. You then take the check, a copy of
the Sales Contract and a Copy of the
Buyer Select Closing Agent Addendum
to the listing agent. It must be in their
office within two business day of bid
acknowledgement.
The listing agent will then upload the
earnest money and earnest money
receipt to HUD.

28. Your contract will not be executed and
your bid will be cancelled if the earnest
money is not delivered to the listing
agent within two business days.

29. Within two business days after the sales
contract packet has been executed the
listing agent will then deliver the earnest
money to the selected title company.

30. Extensions

31. The extension process will be another
change. Extension will no longer be
handled by the title company.

32. Extensions are to be submitted to the
Asset Manager five business days prior to
the contract expiration with the Extension
Form, required fee and lender letter with
current status or current proof of funds.
The fee must be certified funds made
payable to HUD.

33. What If My Buyer
Wants To Change
To A Different
Title Company?

34. This process will vary from asset manager
to asset manager so if you find yourself
in this situation you need to talk to the
listing agent and have them walk you
through the process.

35. In the case of HomeTelos you have to
have an unresolvable issue with the title
company before they will even consider
allowing the change.

36. If you do come upon an unresolvable
issue you would then contact your PreClosing Specialist who will decide whether
or not to grant the request.

37. Helpful Tips
1. Have the buyer pick a title company
and get the Buyer Select Closing Agent
Addendum completed prior to Bid
Acknowledgement.
2. Make sure the title company your
buyer wants to chose has experience
with HUD homes.
3. Both American Title and Willams Title
have experience in HUD homes and
can be chosen as the title company.

38. ?
?
Questions?

39. Stormy Crawford
719-540-6469
Stormy.Crawford@wesellmore.net
Terrie Elwood
719-540-6468
Terrie.Elwood@wesellmore.net