Urgent HUD 1 Request
Hello Board Guru’s
I am in another dilemma over the same deals closing. I let the closing attorney modify my close and now I need more advice. The payoff letter to is for a purchase price of 144k$ to me and I found a buyer for 190k$. The closing attorney for the buyer has taken the liberty of making it appear as though the original owner is the seller directly to the end buyer. I used this attorney due to the fact that he is the closest to understanding a creative deal in my area. Apparently that has backfired and now his mention is that there is no way to hide the fact on the HUD 1 that the actual sale price is 190k$ and the owner is not getting any funds from the deal. The attorney wants some confirmation from Ocwen allowing the sale price to be 190k$ and they only gain 144k$ as long as the seller does not gain anything from the sale. I have never heard of any such thing and was wondering has this ever been done in the past and is this even possible. Then if so, how is this done where the sellers HUD1 reflects one price (144k$) and the buyers HUD1 reflects a purchase price to the bank for 190k$. The question is clear in this explanation of the facts : 1) How is this arranged because the loan the buyer has achieved states a Purchase and Sale price from the seller for 190k$ not 144k$? 2) Will the company accepting a Short Sale allow the HUD 1 to reflect a sale price of 190k$ with anything stating the seller getting the Short Sale gains no benefit out of the 190k$, and if so then how will the HUD 1 show the distribution of funds without conflicting the copy of the HUD1 going to the lenders (buyers bank) making an issue as well over the fact that somewhere in there I collect around 27k$ profit for structuring the deal.
Now it is too late for a Land trust so any answers please keep in mind I do not want an answer over how I should have done this deal , this is where the deal is at today at the closing stage. Not to be arrogant but I need a solution for this current state of affairs. (*___*) Thanks and GOD bless
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I would say you need to focus on how YOU can buy the property and forget about a double closing. You can immediately sell the property but you may need to buy it first.
It takes a very cooperative investor-friendly title company to navigate a short sale double close.
[addsig]
I agree with SS Pro. You should
have purchased the property in
your name first for the Short price
and then closed with the end buyer.
If the lender sees the higher sales
price then why would they allow those proceeds to go anywhere but in their pocket.[ Edited by wealthrx on Date 10/26/2006 ]
So there was origination fraud? If it can be proven the Seller knew nothing about the altered infomration on the mortgage application, then this falls into the lap of mortgage brokers responsibility. Usually, the borrower is asked to sign the neatly typed application at closing.....
You might just want to maintain your relationship with the Seller... enter into a contract at what you feel is a fair price... and sit back. Have the Seller request a short sale application. Help her complete it and see where it goes.
I do think some sort of fraud took place. Is it best to have her request the package or shall I? She is very timid and has given me permission to act on her behalf.
One more question for future reference; Do banks holding both mortgages typically discount?
thanks so much.
can one send a hardship if not deliquent? but knows a payment will be late?