Short Sale Net Sheet
OK,
Working on my first SS.
The lenders took advantage of this poor lady, and I want to help her. Her previous mtg she owed 35K @ 7.2% fixed. She refi'd and borrowed 52K @ 9.8% variable (ouch). They told her her payments would go down because she could barely make the previous mortgage payments before.
Here's the breakdown...
ARV - 55-60K
Current mtg - 52K
Est. Repairs -10-15K
arrears - $500 (1 month)
The preditory refinancing institution sold the mtg to another company 30 days after she refi'd. They knew what they were doing. GRRRR. That really steams me.
Anyway, to do the SS, they want a Net sheet, along with other junk, blah, blah. I expected that they would want a Net sheet, but what's the simplist/most effective way to do it. Should I just use the HUD-1 form?
Where do I put all the costs associated with closing? My side or the Lenders? Do I need to include things such as Title insurance? Do I have to get an appraisal? Title transfer fees? Closing costs? Recording fees?
What price would you start at with a sales contract? I am guessing 25K?
How do I get the bank to NOT persue a defficiency judgment against this old woman.
She has nothing (no bank accounts, retirement accounts, cash saved), and could not afford a 1099 from the IRS saying that she owes 6K in taxes from a 25K debt settlement.
Any advice on this long winded topic would be appreciated.
Thanks,
Sam
PS, would we be better off getting a Deed in Lieu package versus a SS package, and asking for a couple hundred buckes for my trouble?
[ Edited by samedwin on Date 04/13/2004 ][ Edited by samedwin on Date 04/13/2004 ]
In response to the heading.... you can use an estimated HUD 1, or a simple net sheet if the mortgagee will accept that.
They'll want to see the gross sales price, ppayoffs, any deducts as Seller's costs, and, most importantly, their net proceeds.