HUD mortgagee letter 2015-17 allows the responsibility of determining escrow amounts solely to the loan underwriters. Going forward, disclosures for properties listed on hudhomestore.com will no longer list escrow amounts. They will now only cite the repairs.
No longer will a dollar amount be allowed on line 4 of the sales contract. This section of the sales contract will now show TBD when the box is checked indicating there is an escrow. This will allow the underwriter to establish the escrow amount without any need for contract amendments.
This change applies to all new contracts from November 3, 2015 and after. Any existing contracts with an escrow amount on line 4 will fall under the old procedure and may require amendments as requested by the underwriter.
NOTE: WILMOTH Group is strictly prohibited from sharing any information on HUD homes conditions we may have gathered in the evaluation process. WILMOTH Group will not divulge or give any amounts to buyers for escrows. As stated, the determination of these amounts are strictly the responsibility of the borrower’s underwriter.