Wednesday, November 17, 2010

HUD1 Short Sale

When dealing with a short sale, once a agreement has been reached between a buyer and seller, the escrow company will prepare a HUD1 which will need to be submitted with the short sale package to the lender(s) for approval.

Because it can take anywhere from 4-6 months to get an approval on a short sale, many things will happen.  For one, the late payments will add up including late fees.  Second, the seller might also stop paying the property tax and HOA monthly fees.

When the lender does finally approval the short sale, the HUD1 will need to be updated to reflect the additional fees, late payments, etc...  In most cases, the bank will absorb these charges.  In some instances, the bank will not pay the late HOA fees.  Every situation is unique and will require a skilled short sale negotiator to facilitate communication between all parties.

Written by: Richard Johnston
Short Sale Specialist
San Fernando Valley
818-730-4128 Mobile

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