Short Sales, Net Costs
HI, I've been following the forums for a short time now, I have been trying to do a short sale on a property but I'm having some difficulty. I have a seller who wants out(already filed bankruptcy, is in foreclosure and the bank already agreed a yeaar ago to a short sale but the buyer backed out), the value of the house after repairs is about 120,000, they owe 100,000 and are 14 months behind. The bank agreed last year to a short sale of $55,000( or I should say payoff amount), there is $10,000 in back taxes(property leins), and the property only needs 10,000 in repairs. Now I have been in contact with the bank. The bank rep says I need a contract (already have), a offer in writing(done), and a HUD estimated closing statement. How can I accomplish the Closing staement? I contacted a title Company and they want to charge me regular closing fees Just for this estimate. I dont mind paying up front if I know I'll buy the property, but I wont buy it if the bank doesn't agree to a short sale price that will produce profit. (I'll be using hard money for purchase.
Thanks for any help you can give me
When preparing a Proposal for short sale consideration, the mortgaee will ask for an estimated HUD1. You can find this form on line FREE at http://www.hudclips.org/sub_nonhud/html/forms.htm
The form asks for more information than you have to provide. Just detail the main elements. The Sale Price. The Real Estate Broker's commission. Any property taxes or judgments that must be paid from proceeds. You can learn about transfer fees, and guestimate attorneys fee, etc. The biggie is what the mortgagee will net from the sale.
Thanks for the web link for the HUD closing statement.
I've got the amounts owed, so I'll just fill in what I can and submit it to the lender.
Thanks Again