HUD 1

Comments(4)

• 
  myfrogger4th September, 2004

  Asking the seller for a kickback that is not reported on the HUD1 is loan fraud!
  
  If the lender will not allow seller concessions, then getting one is loan fraud.
  
  One option is to have the sellers make a tax deductible contribution to a non-profit company that will in turn give you a "grant" to purchase the property.
  
  I'm not sure if this will work on NOO properties but doing a google search will yield you plenty of companies that do this for a fee.

• 
  JohnMerchant4th September, 2004

  The "Froggie" is right. Big time fed fraud to fudge anything on HUD1.
  [addsig]

• 
  Ruman4th September, 2004

  That is going to be very hard to pull off. If the seller isn't willing to cooperate with something of that sort, then you're really out of luck. The only other thing would be some sort of construction loan?
  
  
  Quote:
  On 2004-09-04 13:22, watchbillw wrote:
  Got a question pertaining to the HUD 1.
  
  My client is purchasing a property for 1.67 mm using a straw and is getting a seller credit (for repair) of 335k. The seller (six family members) are insisting on the credit show up on the HUD because of tax implications. The lender that is doing this since it's a stated-stated deal won't allow the credit.
  
  I'm looking for a way for my client to get back the credit money at or after closing.
  
  Should my client a) get the seller to reduce the purchase price by the 335k or b)???

• 
  watchbillw4th September, 2004

  Appreciate the experience senior frog, John and ruman.
  
  Can either be more specific.... construction loan? how would it be structured pre closing agreement that is paid after settlement?
  
  I don't think the lender will allow the assistance to the purchaser from any outside source let alone a grant. if you don't mind what terms would you search google with?
  
  Could we use a promissory note pre dating the closing to be used as constructions or repairs to the property to my clients const co?
  
  Thanks,
  
  this has been a difficult deal to structure and close borrowing money from different properties to supply the down no seasoning, no doc, straw buyer.
  wow