I am doing an ASC 1st and HFC 2nd. We have the first hud to ASC with a payout of $13,000 which is 10% of the loan and the HUD to HFC with $8,000.
A collegue told me on the second HUD I should only send in what HFC will get and not allow them to see what ASC is getting.
Have you done this?
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As ALWAYS:
STOP dealing with the people that read FROM the scripts (negotiators)
and
START dealing with the people that WRITE the scripts (decision makers)
Knowing WHO to call and what to say to them will alleviate 90% of your short sale headaches, AND, get and keep your closing ratio at or above 90% as well!!!
email me if I can help - Ben@ShortSaleShop.net
exactly, and some here need to learn the difference between a "Preliminary" HUD which is an estimate and not accurate, vs a Final, accurate closing HUD. I ALWAYS overestimate numbers on prelim HUD's, because you never know what last minute changes will pop up.
www.ssprocessors.com
Can you clarify your scenario a little bit? So, the 1st is with ASC? Are you offering them market value in settlement? Does 10% represent market value in other words? For your 2nd lien, you need to show them only what you expect the 1st lein to actually pay them. Otherwise, if you send over a request for short pay of $8000 to your second lien and the 1st ultimately only allows $4000, somebody is going to have to make up the difference or you wont get signature to close at the end. Even if you get a shortsale approval letter from the second, they must sign off on your final HUD in order to close and record. I hope that helps a little.
Best of luck...
One HUD doesn't simplify the Short Sale it complicates it. Two Huds will simplify the Short Sale and it and will cut your negotiation time down substantially if handled appropriately. It's a simple negotiation tactic and should not be overlooked on certain files. This is all done before any bank issues an approval letter or any indication of what they will take and/or pay out hence the term "negotiation" termed by the lien holders themselves. Once you know that than you can use one HUD.
If done correctly two lien files don't take any longer than single liens. In some cases I have seen a lender push on a file when you advise them the other lien has already approved (don't lie about this because they will ask for the approval letter depending on what position they are in). That will never happen with a single HUD unless your numbers line up perfectly on the first submission, does happens but not often. Take control of your own file, don't let the lien holders control it anymore than they already do.
Aaron Ayotte said:
Aaron - if you track your files properly, it is actually MUCH easier to use 2 PRELIMINARY HUD's for negotiating....
When it it gets complicated - send a HUD with a $10k payoff to the second, which they approve, then, the first says they will only pay $3000 MAX.
Depending on your second lien (and more importantly your ability to negotiate), you MAY have to start the entire process over b/c an approval has been issued....ask me how I learned this!!!!
;-)
Again, FULL disclosure....ALWAYS....both lien holder will ultimatley see the final signed and noatrized HUD, no way around it (and I would not suggest you try)!!!!
Keep negotiating for yuor homeowners!!!
I totally agree with the "submit only 1 HUD responses".
Bottom line.....1 HUD showing Net to the 1st, and Net to the 2nd.
You'll have to send the approval letter from each to the other anyway, so how does having 2 HUD's help. Short sales are complicated enough...SIMPLIFY!!
I've found that many 2nd's want to know what kind of loss the 1st is taking before they approve a short sale. (Especially if the 2nd is for a large amount in comparison to the first lien). When our escrow agent was making HUDs that showed closing costs and then just left the remaining amount on line 603 in a lump sum for both 1st and 2nd lien holders, neither of them liked it. They both wanted to see it split out to show what each was getting.
I love the 2 HUDS approach for preliminary (negotiating) tools.
P.S. if you create a HUD that shows the 2nd lender what they'll recieve but shows nothing for what the 1st lender will receive. . . (then all they have to do is look on line #603 and they'll see what the 1st is getting??????? No secrets here.
Smitty - my apologies.....lots to read here and I just did a "quick glance" on your post.
To all - I think with the homeowners best interests in mind, getting this to closing and avoiding foreclosure, as long as everything is ultimately disclosed (know that ALL FINAL HUD'S ARE REVIEWED BY THE INVESTORS ON THE NOTES AS WELL), I think everyting is ok....
One thing I PREACH AND PREACH AND PREACH AND PREACH about short sales:
The guys and girls we deal with in loss mitigation ARE called "negotiators" for a reason!!!
;-)
All my best to everyone.....
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