contract and Hud-1

Foreclosures, Short Sales, Tax Foreclosures
1

Hello,

This is a really great site.
Can someone out there please explain to me how to prepare a contract for a short sale. Should it be in my name or my llcs name and also, how do I prepare a Hud 1 statement for the bank?

2

Depends on what state you are in. Typically you want to use your typical RPA and short sale addendum and use the proper disclosures.

As far as your HUD, depending also on what state you are in your escrow or title company should take care of that. You just need to provide them with the purchase price, HOA information and have them do a title search for taxes and liens, additional fees etc… they will give you a breakdown so you can submit it to the bank…

Word of advise go with title and escrow companies that are experienced with short sales.
Many companies lack of experience can cause short sales to go bad. (There are many pit falls for short sales and this can help avoid some)

Hope this helps!

PM me if you have any questions.

3

We use an option contract to buy and resell short sales. We prepare our own HUD’s as well because we add additional fees and use it as a negotiating strategy. If you are completely unfamiliar with preparing a HUD than I agree with Lyonel that you should have your title company prepare it for you but it would be very beneficial for you to learn how to prepare a preliminary HUD in the future.

Hope this helps

Michelle

4

Here is a HUD 1 form www.michaelquarles.com/HUD1.pdf as for the contract I have one for california

5

Thanks everyone.

Please advise what is RPA and option contract? Can someone send me a copy of a good option contract. i am in the state of Texas. Also what is the best way to develop a buyers list. I have 4 houses i am working on right now.

6

RPA- Residential Purchase Agreement