Before Closing
Two bids are required from a licensed contractor, no matter how small the repair.
Include the licenses when you send in the bids. US Mortgage Lenders will escrow 1.5x the higher
amount. (HUD REO will be 1.1x).
Upload a processor cert indicating your request for an escrow holdback once you have
the needed bids.
US Mortgage Lenders will charge a $150 Final Inspection Fee and a $200 Escrow Holdback Fee, which
needs to be disclosed to the borrower with 3 days of the escrow holdback being
approved by US Mortgage Lenders Senior Management. (Escrow Holdback Fee not charged on HUD REO
or EEM).
Advise the contractor that it may take two weeks after work is done to get money.
After Closing
After Closing
Repairs need to be complete as soon as possible but no longer than 30 days after
closing.
Once repairs are complete, borrower or broker needs to email
and ask her to order the Final
Inspection. The appraiser will contact the borrower and come back to the property.
While that is going on, broker or borrower should email the following documents to
with loan name, number, and “Escrow
Holdback Docs” in the subject line:
1. Letter from borrower stating work is complete to their satisfaction.
2. W-9 for contractor
3. Final Invoice from the contractor
US Mortgage Lenders prefers to pay the contractor directly, however, if the borrower has already paid
the contractor, then a W-9 is not necessary. You will have to papertrail the money paid
to the contractor (cancelled check). DO NOT pay the contractor in cash, or you will not
be able to be reimbursed.
Any overage left will be paid back to the borrower. If the repairs were financed (HUD
REO) then the overage will be a principal reduction.
