What Is a Short Sale HUD-1?
A short sale can be frustrating for a seller who has
no experience with Naperville short sales.
One of the unfamiliar terms a first-time short sale
seller might encounter is the HUD-1.
What
is a Short Sale HUD-1?
It is a document listing all the debits and credits
in a real estate transaction. It is created for the benefit of the buyer and
the buyer’s lender. However, that does not stop the short sale seller’s lender
from asking for the HUD-1 during the approval process.
What
do Banks Look at on a Short Sale HUD-1?
Banks focus on the sales price on an HUD-1. If the
bank’s declared price is greater than that on the HUD-1, the seller needs to
ask for a new purchasing price from the buyer. Other fees to be reviewed by the
bank are the title, transfer, escrow, notary, documentary stamps, and
delinquent property taxes.
Fortunately, not every lender requires HUD approval.
Many junior lien holders do not approve HUDs because they are only concerned
about the amount they will receive from the short sale.
The estimated HUD-1 Settlement Statement is a
complete account of all the fees and prices involved in the short sale. This
settlement form specifies how much money each party gets upon final
transaction.
Do
Banks Reject Fees on the Short Sale HUD-1?
Banks usually refuse to pay for items like repairs,
home warranties, and pest clean up costs. Banks also refuse to pay HOA or UCC
fees. Either the buyer of short sale seller needs to negotiate for the payment
of the balance of these fees.
What
is the Most Common Problem Associated with a HUD-1?
The biggest problem with a HUD-1 is failure to agree
on which party pays for certain fees. This may cause confusion and tension
between the parties when closing time comes and the sellers or buyers are
required to pay for unforeseen fees.
To avoid confusion with the HUD-1, it is highly
recommended that the HUD-1 be looked over by an professional Naperville short
sale agent so any questions or concerns may be answered.
If you are ready to do a Naperville short sale call me, Teresa Ryan at 630-276-7575. As a certified Short Sale agent and owner/broker of Ryan Hill Realty - www.RyanHillRealty.com, I have the experience and tools to help you sell your Naperville home.
Teresa Ryan
Broker/Owner, CDPE
Ryan Hill Realty
1001 E. Chicago Ave., Ste. 103
630-276-7575
No comments:
Post a Comment