Net Sheet Line Items
Can someone break down the items that should be listed on the net sheet? What will come out of the proceeds?
Realtor fees, back taxes, closing fee from title comp, title insurance, recording fees, etc...
Do all these apply?
If the bank orders there own BPO, does the apprasal cost come out of proceeds?
:-?
Here’s what I do:
Prepare a Net Sheet (HUD-1) that lists nothing but the amount you intend to pay for the removal of the lien on the property.
This helps take out some of the confusion on the bank’s end of the deal. I find that it often gets a better response than muddying the waters with what everybody else is getting paid. The caveat is that you must check your math and have a pretty good idea what other expenses you face in that particular deal.
As to whether they apply? That depends on the individual circumstances of the deal.
Finally a BPO is a cost absorbed by the lender. I have never seen the bank charge a third party for it.
CEC - That is a written and thought out response. Thank you.
I don't know if it is a standard practice to submit such a basic net sheet to a 1st but I never really thought about it this way before. It is a 'net' sheet. 'Net' implies one number...the bottom line. The banks should not care about all the noise that goes into it.
Though, don't they care in reality? Won't they want to be sure nothing is going to a subordinate lien holder if one or many exist?
I only enter purchase price, payoff of lien holder, prorated taxes on the first page. On the second page I only enter realtor commission (if appropriate), settlement fee, title insurance, title abstract, deed recording, doc stamps.
Thanks Nickle.
If you want an example of a net sheet just send me a PVT message..Ryan