Compensating The Owner On A Short Sale.

OK, I understand that the owner can't receive compensation out o fthe loan proceeds.
HOwever; I know that people are compensating them in different ways, some legal some not. I have thought of paying 2K through my construction company for "cleanup and vancating the property"

What am I missing?

Comments(3)

  • bobabby17th May, 2004

    You can also but any kind of personal property, with a bill of sale of course. This does not hv to mentioned on the HUD. Antique furniture and pearl necklaces are expensive sometimes.

  • Stockpro9918th May, 2004

    Moving expenses also are acceptable i thnk.

  • TheShortSalePro18th May, 2004

    These disbursements should not be itemized on the HUD 1 as they would probably violate the terms of short sale approval. Generally, the formal (written)approval will specifiy the minimal net proceeds acceptable, plus a requirement that any surplus between proceeds, and allowable, preapproved, expenses be made payable to the mortgagee.

    Another avenue would be to make a dedicated, charitable and tax deductible gift to a nonprofit org who would, in turn, make a gift to the former homeowner.

    _________________
    Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....

    [ Edited by TheShortSalePro on Date 05/18/2004 ]

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