◾Only pertinent on closings that contain a formal lender supplying a mortgage loan.
◾NOT pertinent to all cash, hard money, owner financing, subject to or other investor style closings.
◾Lender obligated to issue a Closing Disclosure 3 days preceding to closing (or what they are calling “consummation”).
◾To issue a Closing Disclosure the lender must obtain a final HUD from the closing company well before the closing date.
◾Closing companies must now organize HUDs much sooner.
◾Lenders currently take a long period of time to Clear to Close and draw up paperwork, so this new condition will add a couple more business days for most loans to close.
◾If there are no last minute changes to the HUD (which constantly occurs), the closing will take place 3 days after the Closing Disclosure is sent to the borrower.
◾Conversely, if there are any noteworthy changes to the HUD after the Closing Disclosure is provided, a new one may be required starting over the 3 day clock.
◾SO basically, EXPECT DELAYS when selling a property to a retail buyer who is getting a mortgage to buy your property
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