The HUD 1 settlement statement is a vital part to the short sale package and if not compiled correctly COULD cost you DOLLARS on your deal.
The loss mitigators closely review all the numbers on the HUD1 and it is your best interest to make sure ALL the numbers are correct so that the NET payoff to the lender is where you need it to be to avoid any last minute surprises due to missed unpaid taxes or missed unpaid HOA fees that could literally shave THOUSANDS of dollars off your deal.
Here are a few things to make sure that you have correct on the HUD1 settlement statement:
1. Make sure the Seller and the Buyer are the same as the Purchase and Sale contract.
2. Make sure your purchase price is the same as your purchase contract price.
3. Make sure the Realtor Commissions are split if there are 2 realtors involved.
4. Make sure you have done your research and included any unpaid property taxes or HOA fees.
5. Make sure you have the correct closing cost amounts from the Title Company you are using to do your closing.
6. Closing costs should NOT be excessive.
7. Seller concessions MUST be included on the HUD1.
8. NO proceeds from the sale to go to the seller.
9. Include the payoff to any other junior lien holders like 2nd or 3rd mortgages.
10. Prorate the current years property taxes.
I realize that some figures may change due to a delayed closing but this amount will be pennies compared to missing information that will affect your bottom line. Pay attention to detail with this form.
To your contiued success.
Kathy Morris
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