How do I prepare the estimated HUD? Should I just show it as 1-line item or 2?
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How do I prepare the estimated HUD? Should I just show it as 1-line item or 2?
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Totally disagree. I've never used 2 HUDs and have never had an issue getting agreements from the lenders involved. but hey...I can sell ice to an Eskimo too :)
Bryant, I just scored big with doing this. Literally had WF want $172,000 NET on a HUD and I originally offered them $164000 net. HSBC second position. I offered them $8000 of a $130000 note. They originally approved $13000 (second lien position) second time around approved $8000. WF was ok to pay out $12500 to HSBC, but now, I got them $5000 extra, PLUS I found $3000 from taxes that weren't due we originally thought were. WF kept cutting commission to 5% but because of the extra I got from HSBC from doing the two HUDS, my Realtors got their full 6%...no need to cut.
Works great. Not every time, but when it does, it's well worth the attempt.
Hi Smitty. Its just a matter of having different styles. I've just never felt a need to use 2 HUDs. Maybe its because I'm old and need to keep things very simple. I get confused easily :)
LOL.. Bryant, you're not THAT old, and trust me, I get confused easily too...Comes from having too much of a chaotic lifestyle.
I only use two HUD's on deals with large HELOC 2nds, and NEVER on a Freddie deal, unless you want a friendly visit from their fraud investigators.
Joseph, please don't tout the "fraud" card here. I've already explained, all my huds are prelim.(only if I don't have time to wait due to an auction, will I submit a prelim HUD without attorney reveiw) ALL my final HUDS are either done by title co or attorney.
Two HUDS is a strategy for me to poke the lenders to get an idea of what they'll bite at for a NET.
In section 500 you have a NET payout to the first lienholder, and then usually a line above or below that line with what you are offering the second lien holder (typically 10% of what is owed). (Unless you're me and you do separate HUDS for each lien holder, but I'm not going to get into that)
Smitty is there a reason why you would do 2 Huds and not just one? Should I assume you had issues with a 2nd lien holder wanting more because they saw what the first one was getting? Just wondering for future reference.
Thank you
Yes there is a reason. I do two because second lien holders are notorious for asking more than the traditional 10%. So I literally tell the 2nd they are only getting about 5% of the note balance, and I HUD the first lien holder to show that they are to pay the second 20% or more. Usually when one approves I have more negotiation leverage with the other. Final HUDS are prepared by title attorneys or agents and they usually go off my figures.
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