HUD No. 02-05-2011
February 5, 2011
THE RETURN OF EARNEST MONEY TO PURCHASERS UNABLE TO CLOSE DUE TO THE TERMINATION OF THE CLOSING SERVICES CONTRACT FOR NORTH CAROLINA
In November 2010, the closing services contract for North Carolina was terminated. Therefore, several HUD properties that were assigned to the previous contractor to perform closing services were placed on hold. HUD received a detailed accounting of funds, including earnest money deposits, that were collected for each property assigned to HUD's previous contractor on or about December 15, 2010. Additionally, HUD has transitioned its properties from the previous management and marketing contractor to the new Field Service and Asset Manager contractors on December 12, 2010. Currently, HUD is in the process of reconciling the earnest money deposits to ensure that the funds are properly posted to the corresponding canceled Sales Contract. Once this effort has been completed, HUD will notify its three Asset Managers to return the earnest money to all purchasers that were ready to close but unable to do so due to the termination of the closing services contract for the North Carolina area. We appreciate your patience as we take the necessary actions to address this issue.
For additional information and or updates call 1.800.CALL.FHA (225-5342).
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