HUD-1 And Purchase Contract Question
I have recieved a list of documents which the mortgage company requires in order to do a Short Sale:
1) Listing Agreement
2) Written Offer/Purchase Contract @ Fair Market Value
3) Estimated Closing Sheet/HUD-1/Settlement Statement
4) Preliminary Title Report
5) Termite Report, if applicable
I have two questions here. First, what does the mortgage company mean by "Purchase Contract @ Fair Market Value"? Assuming the homeowner is willing to give me a deed with no money going to him, the remaining mortgage payments are 200k, and I am trying to get a short sale accepted for 160k, is 160k the "fair market value" to list on the purchase contract?
Second, on the HUD-1, which value is listed on line 401 as the contract sales price?
Thank you all, these small details can be the hardest part when you have not gone through them before.
Ask yourself "why would the lender accept a nickel less than they are due if they would be made whole by foreclosing...."
If FMV is $50K more than they owe... the answer is that this is not a viable short sale candidate.
Thank you for your help.
Is the purchase price listed on the documents you provide the lender:
1) The price which you propose them to accept for the property?
-OR-
2) The "FMV" (and then elsewhere on your submitted documents you show repairs and realtor fees which eventually justify them taking the price you propose for them to accept for the property)?[ Edited by GoldenBear on Date 03/24/2005 ]
I am having a tough time conveying this question. I know the purchase price is indicated on the contract to purchase.
I was proposing two alternatives in my prior question. One (1) was whether the "purchase price" is your proposed price for which you want the lender to accept...OR...the second (2) alternative, being the "FMV", which if there is any equity at all in the deal, is obviously higher than the price that you want the lender to accept.
If #2, I was then asking if you then list repairs, realtor fees, foreclosure costs, and the like to get to your bottom line, which would be the price you want the lender to accept (which is less than the true FMV).
some numbers would help A LOT![ Edited by cjmazur on Date 03/24/2005 ]
I would think that you use whatever was the negotiated and accepted purchase price by the buyer and the seller because all percentages of monies to be paid out will be based on this figure. Not having done a short sale myself I am not completely sure. A title company may have the right answer on this.
Does this 82% rule also apply after the property has been foreclosed and reclaimed by HUD? I have heard a number of different numbers thrown about and was just wondering what the minimum Net price HUD will accept for a property.
Thanks,
JS.