2020 has proven that no industry is protected from the effects of the COVID-19 pandemic. The United States Department of Agriculture (USDA) home loan program has carried on but is currently experiencing delays. So, what can you do on your part?
If you have requested a USDA loan payoff and have received no notification of where you are in the process, you are not alone. Currently, payoffs are taking upwards of 25 days to get back compared to the usual 24-72-hour period. This delay is significant not only to our process but to the mortgage lenders and agents as well.
In order to keep everything on track, as best as we can, we urge you to communicate with us as soon as possible if you or your client has a USDA loan. Without communication, we are usually unaware of whom the client has a mortgage with until after we receive the title paperwork which takes between 5-12 days of the typical 30-day closing process.
When requesting a USDA loan payoff statement during the selling process, the following documents may be required:
- Customers name, loan number(s) and written authorization to release payoff(s).
- A copy of the signed sales contract and/or a copy of a Uniform Residential Appraisal Report. Any capital improvements must be itemized on a separate addendum to the appraisal.
- A copy of the estimated settlement statement from the closing agent.
- Payoff good thru date
If you have any questions about USDA loan or payoff information, please refer to a member of the Metropolitan Title team.