Is it Possible to Have a Deadline Extension for a HUD Contract?

Homes acquired by HUD as the result of a foreclosure on an FHA-insured mortgage become HUD housing. These can be a great option for prospective homebuyers searching for a primary residence that may be low on funds.

So what exactly is HUD?

The American Department of Housing and Urban Development, or HUD as it is also known, is one federal agency directly responsible for any programs and national policies concerning housing, development and improvement all around the nation, its communities and the enforcement of fair housing laws. The way HUD operates is meant to help make decent living conditions a reality for all Americans and it has been working toward improving these on an urban level for many years. The programs HUD covers include the following:

Providing mortgage insurance for individual homeowners and families
Working on rehabilitation, development and modernization for the housing stock of the nation
Development of multifamily housing with HUD insurance
Revitalization, development and improvement of the urban centers and neighborhoods around the US
Providing rental subsidies for the lower income families to help obtain affordable housing
Enforcing the laws of Federal Fair Housing

HUD assists in carrying out all of these operations and it helps manage many vendors and independent contractors as part of its own operations. Overall the awarding of HUD contracts is done by the Chief Procurement Officer (CPO) who has the authority and responsibility over HUD contracting activities. Contracts are managed and awarded by four major offices within the Department itself: The Office of the Chief Procurement Officer (OCPO) located in HUD Headquarters, as well as the three Field Contracting Operations that are located in Atlanta, GA as well as Philadelphia, PA and Denver, CO. The FCOs also have their own branches and staff all around cities that fall under their jurisdiction.

Yes, an extension is possible.

So when all of this is said and done is it truly possible to have a deadline extension for a HUD contract? Absolutely! All you need to do is keep a few things in mind, specifically the fact that there are different types of HUD contracts and you will need a different form for each type of contract, so you may need to look for the specific form to cover the extension. One good example of that is the Mortgagee’s Request for Extensions of Time, also known as form OMB 25020611.

Apart from said form you will also need to have the supporting documentation as well, which will include the reason for delay, as well as the verification of the underwriter approval and the current status of your loan. You will need to ensure all letters have the signature the underwriter or the loan officer. Any outdated letters will be rejected and the extension will be denied, so keep that in mind as you go forward.

Fees for the extension must be submitted only in certifiable funds, but you should also keep in mind that the extension will be charged based on the contract sales price. Submitting the fees can be done in 15 day increments. Depending on the contract sales price the extension fees will also differ, as per the following examples: