HUD Home Information - CONTRACT CANCELLATIONS/EXTENSIONS - www.cjharrington.com

Automatic cancellation will occur on the closing date that is indicated on the Sales Contract, unless an approved extension has been granted. NHMS will grant contract extensions on a case-by-case basis if the facts indicate that there is a necessary delay to settlement and closing. Requests must be delivered in writing on the appropriate form to the HUD Closing Agent at least five (5) business days prior to the closing date set on the Sales Contract .

No extension will be approved unless the appropriate documentation and fee in the form of certified funds accompanies the request. Based upon the sales price, the extension fee is as follows:

• $150 when the sales price is $25,000 or less,
• $225 when the sales price is $25,001 up to $50,000, and
• $375 when the sales price is over $50,001 or more.

The non-refundable fee is made payable to the U.S. Department of HUD. If closing occurs in less than fifteen (15) days, the purchaser will be credited a prorated amount per day. There is a required addendum for the purchasers to sign that must be included in the Contract Package stating HUD’s policy regarding extending the closing date.