What If Short Sale Lender Wants To See The HUD-1 Before Closing
What if the lender who approved the shortsale wants to see HUD-1 before closing. I got a shortsale approved from saxon with my LLC as a buyer for 450k. However I put the property in a landtrust because I knew I was going to flip it to a end buyer and I wanted to keep seasoning intact. However the lender made a condition of the final approval is that they see the HUD-1 to make sure all the charges they agreed to as a concession and also to make sure the seller nets nothing.
I fear that if I shoe them the HUD-1 with the purchase price of 675,000 they will declined final approval even though I am paying them the lien amount agreed in the approval letter.
Please can anybody give me some advice to tell the title company. I was thinking maybe I have the title company drawup a HUD-1 with my original company as seller without actually closing on that transaction to show the title company.
but then draw up a HUD-1 with the actual sale for the end buyer bank.
Any legalities against this all opinions are appreciated.
I thought that the SS lender wanting to see the HUD before closing was typical. This is one of the reason behind double closings. You close the transaction with the lender doing the SS and then the property is "yours" to sell to the end buyer. I have found the availabilty of title companies willing to fund-backwards though are drying up.
ofcourse they are going to deny it if you show them that HUD. there is going to be TWO HUDS. one fromt he first transaction and one from the second. you only show them the first one. They want a pre-hud so they can see what they are going to NET. This is standard and does not ahve to be exact. I draw them up everyday when i submit short-sales, its the most important part of the shor-sale process..
-Ryan
No No No what about when there will be no first transaction because you deeded the property to landtrust
Do you still just show them this mock HUD-1 for what they will net and just proceed with the second transaction like the first never happen.
Oh, I almost forgot.
If you are in New Jersey, you have a new peice of anti-foreclosure consultant legislation that mandates you to be a state licensed and bonded debt consultant.
If the person you (ahem) bought the house from ever got wind of the any time over the next seven years, you could be fined out of existance and tossed into the slammer for a long, long time.
Cheers.
I am not in New jersey i am in new york my company is justy based in jersey but feel you.
Quote:
On 2007-08-04 15:36, cpifer wrote:
Oh, I almost forgot.
If you are in New Jersey, you have a new peice of anti-foreclosure consultant legislation that mandates you to be a state licensed and bonded debt consultant.
If the person you (ahem) bought the house from ever got wind of the any time over the next seven years, you could be fined out of existance and tossed into the slammer for a long, long time.
Cheers.
Is this for all short sales or pre-foreclosure transactions?
WOW!