Who Creates The HUD?

I'm representing the buyer of a short sale in California; Seller's agent is in my brokerage, and has "hired" a 3d party negotiator. BofA has countered my client's offer. I know the counter price but not terms. 3d party negotiator will not provide Equator worksheet or the HUD as it has "created problems in the past." I think the 3d party negotiator created the HUD as escrow/title named on the purchase agreement says they have not. 1. Am I entitled to see the Equator worksheet and/or the HUD? 2. Is the 3d party negotiator even allowed to create the HUD if they're not the escrow/title co?

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Permalink Reply by Jeff Payne on January 13, 2012 at 10:05am

What?  Why would they not provide HUD or Equator Worksheet?  That is nonsense, you should be able to see that.

Anyone can do a prelim HUD, I do my own and it should not be a secret to the buyers agent nor should the worksheet.  What does the listing agent say?

Permalink Reply by Katherine Muhs on January 13, 2012 at 10:16am

Listing agent says whatever the 3d party negotiator tells him. I'm the one that's not accepting the nonsense answers. He's getting frustrated with me but so be it.

Permalink Reply by Katherine Muhs on January 13, 2012 at 12:20pm

I agree, that some agents can't decipher an Equator worksheet or even a HUD form. I can. Also, if escrow did have the HUD you should care because you need to know it's correct. In my case our escrow co does not have the HUD as it was generated by the 3d party negotiator and she won't even share it with the listing agent. FYI, on my last short sale (where I represented the buyer), the escrow company forgot to include the cost for the title insurance and some other seller costs, so the short sale approval letter left those items unaddressed and we were short funds for closing. The listing agent and his brokerage had to pay it via reduced commission.

Permalink Reply by Jeff Payne on January 14, 2012 at 4:43am

Katherine, this is one of those cases that may have been avoided by interviewing the listing agent and the 3rd party before showing this home to your buyer.  You may have seen some red flags there.  Are you sure that they are not trying to flip this property which would be why they don't want you to see the HUD right now?  Don't ask me why I would know to ask that question :)

Why in the world would a listing agent partner up with a 3rd party that won't even share information like a HUD-1 with them? 

Permalink Reply by Wendy Rulnick on January 14, 2012 at 3:27am

I agree with Brian, below.  I don't always provide the Equator worksheet. It does cause a huge amount of confusion with agents who are not familiar with it. If they don't believe the counter offer is truthful, that is a whole different "level" of problem.  Showing the Equator worksheet to someone not authorized on the account could be questioned anyway, as confidential information.  The other point is, in the middle of negotiations between the seller and his lender, I don't want a buyer's agent micro-managing my work....  Pre-lim HUD, that's fine, but it can also be problematic.  

Permalink Reply by Jeff Payne on January 14, 2012 at 4:41am

Wendy, I can understand where you come from on this but still don't see any issue with showing them the  Equator worksheet, I don't believe there is anything confidential on there that is not already on the sales contract.   I sometimes have to explain to the agent to disregard certain items that the seller is paying for like doc stamps, commission, owners title policy.  Sometimes I highlight the buyers numbers for them so they know what they are looking at....  I do my own HUDs so I have those in hand too just in case they need more explanation.

Doesn't happen often because like you said, too many agents don't know how to read a HUD anyway.

Permalink Reply by Wendy Rulnick on January 14, 2012 at 4:59am

I understand your point, too.... Sometimes too much information brings in the unsolicited expert IMO.  

Permalink Reply by Bryant Tutas on January 14, 2012 at 7:03am

I do not give the prelim HUD or worksheets to the buyers agent. I don't think I have ever even been asked for them. My opinion is I don't think the buyer needs to see that my seller may be bringing money to closing or receiving money at closing.

Buyers and their agents mistakenly believe that all short sellers are in distressed. As soon as they see funds coming or going they want some of the action. 

I'd much prefer they don't see my sellers hand until we are ready to close.

Permalink Reply by Wendy Rulnick on January 14, 2012 at 8:33am

Bryant - Good additional points.

Permalink Reply by Smitty on January 15, 2012 at 4:32am

Jeff, I agree with Wendy.  I don't show any prelim HUD's to buyer's agents.  Too many chefs in the kitchen spoil the soup.  If I'm farily certain, I'm getting an approval, I will send prelim HUD off to closing agent for final HUD and THEN may send to buyer's agent. 

 

There is no other reason then a buyer's agent scrutinizing something and making a wave when I know what it will take to get the sale complete.

Permalink Reply by Hairman on January 14, 2012 at 5:48am

Maybe the 3rd party does NOT want to show how much they are charging to negotiate the Short Sale!

Permalink Reply by Kevin - Greenville, SC on January 14, 2012 at 9:16am

Any fee/costs associated with the sale would need to be on the Final HUD-1 anyways.

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