A friend of mine was doing an REO closing and the seller in this case was HUD.  HUD, like all other large servicing entities has it's authorized closing agents who act as liason to the buyer's title agent if the buyer elects, for good reason, not to use the HUD title agent.

My friend sent me an e-mail yesterday outlining the difficulty she is having with the HUD title agent. Her situation was almost exactly like a situation I had with this same closing agent some months ago.

I represent sellers in REO transactions every day and every day I am called upon by the buyer's title agent for instruction and guidance to enable them to comply with the seller's instructions, etc. I always try to be helpful and pleasant because:

• I am ultimately responsible to the seller for meeting their guidlines, timelines, etc.
• We work in a very small industry and I will one day need the help of my fellow title agents
• Being unpleasant helps no one to meet our mutual goal of getting the deal closed

HUD has some really quirky rules, one of which is that they won't allow their title agent to release the original deed until they receive their funds.  This is not altogether uncommon and I have a few clients myself who have the same rule.  However, in the case where I am unable to release the original Deed to the buyer's title agent, I always make a point to send them a copy of the Deed for their review in advance of closing.  

In the instant case however, the HUD title agent would not release a copy of the Deed to the buyer's title agent prior to closing, which date was 3/4/11. It is now 4/15/11 and the buyer's title agent STILL has not gotten the deed.

When the buyer's title agent called the HUD agent she was advised that the deed had been MAILED and that they would have to order a duplicate.

To make matters even worse, when the buyer's title agent called again yesterday to inquire about this matter, the manager of the HUD appointed title agency hung up on her and said basically that a new deed had been mailed and that was all they could do to assist the buyer's title agent.

The buyer's title agent has now filed a notice with their underwriter advising of a potential claim due to the fact that this deed remains unrecorded.

Why must we always fight? Do we not all have the same goals in mind? Must we always be working a "power play" in these transaction?

I get so very frustrated with the lack of cooperation from some of the title agents. But the question becomes, to whom do we complain and will those complaints fall on deaf ears?