Question On Doing A Net Sheet For A Simple Cash Short Sale
I am 99% complete on finishing the SS package for an FHA property - my first deal. The lender has asked me to include a net sheet with the package.
I read Dwan & Sharon's chapter on doing short sales, and I have seen lots of posts here about the net sheet and HUD-1 form; but I have not been able to find any advice on how to figure the costs that go INTO a net sheet. I'm doing a cash purchase (borrowing from a private lender) and the house is not listed through an agent, so it's "By Owner" (no commissions).
I am offering to pay the closing costs, so I really don't know what fees the lender traditionally has to pay in a SS transaction like this. I saw a sample net sheet in Dwan & Sharon's book that lists "Doc Stamps", "Abstract Title", "Title to Close", "R.E. Taxes", and "Misc Costs". Where do I go to determine what these charges will be, and whether the lender has to pay them?
In case it matters, I'm doing this deal in Michigan. I could use the advice ASAP - want to get this package to the lender immediately. Thanks for your help - happy holidays!
Hi Storm,
If you are offering to pay all closing costs, then your HUD1 is a piece of cake.
If you want an accurate estimate of closing costs in Michigan, and which party typically pays what, I'd call a local title agency and give them your sales details. They should be able to quote you accurate numbers in about 10 minutes.
I just sold a house in Michigan for $200K and seller's CC were transfer tax (1.6k), title ins ($700) and Closing Fee (Attorney) ($200) bucks.
Buyer typically pays appraisal, closing fee for attorney as well, title insurance (for the mortgage lender) and a recording fee.
Good luck
That helps tremendously, cz! Thanks for your help!
can you also just have the title agent prepare the doc or pay them to walk you through it?
I actually called the title agency I plan to use for the transaction, and they gave me some estimates over the phone. Now I am waiting to see if the bank accepts my offer...