From Faegre Baker Daniels LLP:
Having led the Allies to victory over Hitler in World War II, our 34th president knew what he was talking about when it came to motivation. It’s fun to imagine how Ike might have deployed his wisdom on motivation if he’d ever had to gear up for a Section 223(f) closing. Which parties might have needed an extra nudge from the commander in chief to keep the deal marching forward? In other words, in the context of a typical HUD-insured closing, who is least motivated to get the note endorsed?
Surely not the lenders – their representatives are chomping at the bit to earn their fees and move on to the next deal.
Surely not the borrowers – their principals are eager to avoid extension fees and start enjoying lower monthly payments.
Surely not the attorney, surveyor or title company – they generally don’t get paid until the deal closes, and they won’t be retained in the future if they contribute to a closing delay.
You might be tempted to say HUD is the least motivated party. But I can assure you, having worked at the department for many years, that most of my former colleagues were driven to get loans closed. Some staff were inspired to help HUD fulfill its mission, while others pushed toward closing simply so they could clear some space on their desks.
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