Arrowhead Escrow Blog

Alot of agents and buyers call us to request an extension on the purchase of a HUD home. It's a common thing so we thought we would explain the process for everyone.

All agents should review Addendum A of the Sales Contract that all buyers must sign when they submit an offer on a HUD Home. In that addendum it clearly explains the extension policy.

If you don't have your loan documents by the 35th day of your escrow you need to request an extension. If you don't request the extension in writing you will receive a automated notification from the M&M Contractor that your file could be cancelled.

An extension will be good for 15 days. The cost per day of the extension will depend upon the purchase price. It will cost $10 per day if the sales price is $25,000 or less; $15 per day if the sales price is greater than $25,000 but not more than $50,000; and $25 per day if the sales price is over $50,000.

The request must be submitted in writing with the fee to the closing agent and it must show the cause of the delay. The fee must be in certified funds, so either submit a cashiers check or money order.

You can request to have Pemco waive the extension fee. Even in this case you must submit the request in writing with the fee in certified funds. If Pemco waives the extension fee you will be refunded through escrow at closing.

Keep in mind if your purchase does not close your extension fees are forfeited. In other words you will not get them back.

If you have any other questions regarding extension fees or the process please call your agent or refer to Addendum A of your Purchase Contract.

--Arrowhead Escrow