SHORT SALE NEGOTIATION 3 HUD 1 - … · Escrow generates the final HUD. 3 ... Adjustments for Items Unpaid by Seller ... bk-Processing 3 - HUD 1.ppt [Compatibility Mode] Author:

Advanced Real Estate Concepts, LLC9220 SW Barbur Blvd., Suite 119 • Box 159

Portland, Oregon 97219Phone: 971.222.3734 • Fax: 503.296.5663

[email protected]

SHORT SALE NEGOTIATION 3

HUD 1

Copyright 2005-2006 by Oscar MoranteAll rights reserved. Partial or complete reproduction of this document prohibited without written permission.

1

www.bestshortsales.com

HUD 1Objectives:

U d t d th HUD 1 fUnderstand the HUD 1 form

Complete the HUD 1

Modify payoffs based on transaction needs

Effectively apply the HUD 1 in short sales

Short Sale Flow Chart

BUYER(NewHome

Owner orInvestor)

HOMEOWNER (Seller)

Agent(Listing)

Agent(Buyer)

© Copyright Oscar Morante – Short Sales A-ZAdvanced Real Estate Concepts, LLC – 2005-2007www.bestshortsales.com Ph: 971.222.3734 [email protected]

Title Company (Escrow)

Addendum “A” Understng.

Earnest money (promissory

note)

1

Commitment (signed

documents)

Good to have to open escrow

Mandatory to open escrow

Creates Title Report

CreatesSettlement Statements

2

Investor or listing agent opens escrow

Purchase & saleagreement

Authorization to release

information


payoff

Authorization to enter property

Use to access property for B.P.O. appraisal, inspection, re-sale, etc.

Property

Lenders may request

Lenders will require


Lenders may request to see

2


The HUD 1RESPA compliant net sheet

RESPA:

Real

Estate

Settlement

Procedures

Act

Federal consumer protection statute - 1974

www.hud.gov

The HUD 1Provides detailed breakdown of all costs

Only institutional creditors require it

Not required for private transactions

Shows creditors their exact net at closing

“How much are we going to net?”A Preliminary HUD 1 is required for negotiation

HUD 1 shows “who, what and how much”Negotiator creates preliminary HUDs

Escrow generates the final HUD

3


Settlement Statement Settlement ChargesThe HUD 1

Preliminary HUD 1 Important skill for short sales

Short sales lingo

“the prelim”“the prelim HUD”“the HUD”Line = Item

4


Transaction Information

Completing a Preliminary HUD 1

Gross Amounts


5


Gross Amounts


Purchase Price


(Review)

6


Gross Amounts


Gross Amounts


7


Gross Amounts


Gross Amounts


8


Gross Amounts


Gross Amounts


9


Short Sale Purchase AgreementClosing(Review)

Adjustments for Items Paid in Advance


10


Amounts Paid By or In Behalf of Borrower




11




Short Sale Purchase AgreementPurchase Price

(Review)

12






13






14






15






16


Short Sale Purchase AgreementClosing(Review)

Reductions in Amount Due to Seller


17




Line 1400

Settlement Charges


18


Settlement Charges


Settlement Charges


19


Settlement Charges


Settlement Charges


20


Settlement Charges


Settlement Charges


21


Settlement Charges


Settlement Charges


22


Settlement Charges


Settlement Charges


23


Settlement Charges


Settlement Charges


Value goes to

line 502

24


Reductions in Amount Due to SellerFrom1400




25






26


Adjustments for Items Unpaid by Seller


Adjustments for Items Unpaid by Seller


27






28






M tMust be “0”

29




E t liEnter line 603 value



30





31




x

Short Sale Flow Chart

BUYER(NewHome

Owner orInvestor)

HOMEOWNER (Seller)

Agent(Listing)

Agent(Buyer)

© Copyright Oscar Morante – Short Sales A-ZAdvanced Real Estate Concepts, LLC – 2005-2007www.bestshortsales.com Ph: 971.222.3734 [email protected]

Title Company (Escrow)

Addendum “A” Understng.

Earnest money (promissory

note)

1

Commitment (signed

documents)

Good to have to open escrow


Creates Title Report

Creates Settlement Statements

2

Investor or listing agent opens escrow

Purchase & saleagreement


information


payoff

Authorization to enter property

Use to access property for B.P.O. appraisal, inspection, re-sale, etc.

Property

Lenders may request

Lenders will require


Lenders may request to see

32


ReviewRESPA compliant settlement statement

Reflects purchase and sale agreement

Negotiator creates preliminary HUDs.

Escrow creates final HUD

The HUD has Two Pages:

Settlement page = All transaction costs

Settlement charges = Professional and government fees

Seller earns “zero” at closing

This page left blank intentionally

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33


No Legal Advice Provided

None of the statements in this online seminar, printed material or in live presentations should be construed

as legal advice or recommendation. Consult with local real estate attorney prior to action or decision. The following, including all affiliates and successors, are not liable for any damages resulting from using the

presented material.

Oscar MoranteOscar Morante Advanced Real Estate Concepts, LLC

Best Short SalesBest Short Sales Dot Com

Short Sales A-ZShort Sales A-Z Online

Copyrighted Material

All Duplication ProhibitedMeant for Individual Use Only

Public Showing Illegal© 2005 – 2007 Copyright by

Oscar MoranteAdvanced Real Estate Concepts, LLC

9220 SW Barbur Blvd, Suite 119- Box 159Portland, Or 97219

Best Short SalesBest Short SalesBest Short Sales Dot Com

Short Sales A-ZShort Sales A-Z Online

Documents

SHORT SALE NEGOTIATION 3 HUD 1 - … · Escrow generates the final HUD. 3 ... Adjustments for Items Unpaid by Seller ... bk-Processing 3 - HUD 1.ppt [Compatibility Mode] Author: