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Permalink Reply by Jeff Payne on March 27, 2011 at 5:30am

Have your title company prepare the HUD for you or if you understand how to do it, there is a HUD generator at www.setcoservices.com  Be sure to include ALL expenses on the HUD.....taxes, HOA, liens,

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Permalink Reply by Alyce Nelson on March 27, 2011 at 6:02am

This sounds like a credit to the buyer towards closing costs, also known as a seller concession.  They are not allowed in a HAFA short sale which is why you cannot find a space for it on the HAFA HUD form.  If it's a deal breaker, you may need to renegotiate the sales price with the buyer for $3,000 less and use that as their "credit."  The other way would be to increase the REACommission, apply the extra to the selling agent with the understanding the overage would be used to help defray their buyer's costs to close.  If you do the latter, get it in writing...sadly there are some greedy agents out there who may not cooperate once you make it to the closing table ...good luck! 

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Permalink Reply by Bryant Tutas on March 28, 2011 at 1:25am

Alyce. It's my understanding that the lender/servicer has sole discretion what closing costs to allow based on what normal for the particular market where the property is located. In my area  a seller concession of 3% is almost a given and therefore may very well be approved. I can't find anywhere in the HAFA directive that states they can't be paid. However the total commission is limited to 6%. So increasing the selling side commission to cover the buyers cost would mean the listing broker gets squat. Unless I'm missing something.

 

As for this article. Karen the closing agent should prepare a prelim HUD for you. If they won't then find another closer that has experience with short sales. But whoever prepares it be sure to check it to make sure the numbers are right. And use a closing date about 5 months out for pro-rations to make sure you are not low on the pro-rations.

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