FHA HUD1 Question
Been working on a FHA/BofA short sale for 18 months now and hopefully am down to the last stage... In submitting the HUD1 we are short approx $400 to pay off the HOA lien. BofA is saying it can't be on the HUD in the commission section(I offered to pay it out of my commission), that has to stay at 6%.
BofA says - " I just had a file pass through quality with the exact same issue. They were paying off a lien and agent contributed the remaining. $2250 was listed in the 500's (can also be in 1300's) and the remaining portion the agent was paying was in the 400's."
Closing attorney replies - "400 section of the HUD is a credit to seller, this will then add funds (not to the HOA) but to their net fee and the bank will get the difference, Travis I suggest you bring us a check for the 407.40 or we will deduct this from your commissions and leave off the HUD or our firm will be shorted and have to pay this from our fee. I can list in the 500 sections but 400 is credit to seller section not a section I can pay a fee by an agent."
BofA replies - " I understand and appreciate your help with this HUD. We are extremely busy as well. In order to move forward with this file the HUD has to be listed as I stated. I realize this would leave a credit to the bank. We are paying off the lien. I just qualified a loan this week in the same exact situation. The remaining balance the agent was paying was listed in the 400’s."
Closing Attorney reply - "Then I think it needs to be switched to another law firm, I can no longer assist with this HUD..."
Anyone out there been in this situation before? This is the last chance to close on this property as we are past the dates on the approval to participate...any help would be greatly appreciated!
Replies to This Discussion
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Permalink Reply by Tara Samney on
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Hi Travis, First - is the closing attorney also your seller's attorney (or just the buyer's). I would not suggest recommending this attorney in the future for short sales. I've never had a problem with them running ragged to get the numbers to work. I'm always impressed how they work it out and their perserverance!
My experience has been 1 of the attorneys (usually the paralegal) will just pick up the phone when it gets to this point and call the negotiator/closer and discuss what they want to do on the HUD and work it out over the phone and resubmit. This saves a lot of back and forth.
Here's a thought- can you just go to the HOA (stroke them a check for the $407.50 to front it). Have them give the paperwork to clear it , submit that paperwork to clear it and have it off the HUD? I recently did something similar in that a HOA refused to let the $50 disclosure fee and $150 HOA dues wait until closing. I just paid them and at closing, the attorneys stroked me a check. The HUD reflecting something like POC. It was approved.
Check if buyer can pay it at closing...if contributions are allowed.
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Permalink Reply by Travis Duncan on
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Tara, thank you for the suggestions, I will discuss these with them today.
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