Moving numbers around on the net sheet/HUD-1

Hi, all. I posted earlier about not being able to negotiate with lenders into discounting the BPO and didn’t get any definite responses. The BPO’s have been coming in even lower than I ever hoped for but they still need to be discounted to give me a good enough deal to cash them out. The lenders in my area are not taking any less than 100% of the BPO (a Chase Mortgage loss mitigator told me they have to NET at least 92% of the BPO which brings the GROSS back up to 100% of the BPO, even for conventional loans, not just FHA or VA loans).

Anyway, I’ve been kicking this idea around with one of the short sale gurus and he thinks that moving numbers around on the net sheet/HUD-1 might help even though the net to lender would stay the same. For example, I have a short sale in progress where I can only cash out at $54,000 and still have it be a deal but the lender is paying all closing and other costs and the lender wants 100% of the BPO.

It’s been suggested by the short sale guru that if I take all the costs myself, this will help me get more offers accepted. But if I do this, I have to lower my overall offer to stay within my maximum cashout of $54,000. The net to the lender would stay the same.

Does anyone have any experience with how moving around numbers on the net sheet/Hud-1 might increase short sale offer acceptances? Even if the net to lender stays the same, is there a psychological advantage of some kind for me to absorb the costs even though my overall offer would have to drop to accomodate this? TIA.


Don’t know about offering that in a SS, but it works on the average seller and it works on HUD bids as well, so I see no reason why it shouldn’t make a difference on SS offer, too.

Simple is always better.


Thanks, Raj. At this point, I’m completely frustrated with my inability to get past this issue with the loss mitigators. It can’t hurt to try it, I guess.

Giving the bank the same net amount will only keep the price the same. The only difference is the closing cost comes out of your pocket. Yes this may get your offer accepted quick, but don’t see how it would be cheaper for you. You could include $1000 for abstract fee’s and it will only take $350 for example…put in your contract that the bank can only net $XXXXXX which is what they want…they extra money left over goes to you…they normally never see that on coming…try that maybe

This is true. It wouldn’t be any cheaper for me. The way I normally do a net sheet is I start out with the absolute price I want to see out of my pocket and no more. Then I start subtracting items from it for the seller. If I started absorbing all the costs, I’d have to work backwards to make sure my out-of-pocket cash outlay would still be the same. Makes no sense to me why it should matter if the lender is netting the same amount but at this point, I’ll try almost anything. Thanks for the interesting thought on what to try.

Outside of the NET sheet, have you itemized all the bank’s costs including holding costs (especially if you’re in a redemption state), realtor commissions, insurance, property taxes, eviction and maybe even bankruptcy?

You need to create an itemized and visually influencing cover letter. In your itemized list put all the most expensive bank costs near the top of the list with a running total of the reducing net amount for each item. Then place your offer off to the side of this itemized list and point to where your offer would lie. Visually speaking, your offer will “look close” to the BPO price and the lengthly list may make them reconsider your atractive offer. ;D

Also, make sure your net sheet includes bullet pointed items of distress. Many time the decision maker will not see the entire short sale package, but will scan the NET sheet. This helps ensure the decision maker sees the house problems.

Sometimes you need to be a little creative.

  • Short Sale Mike

Mike, below is a typical net sheet for my short sales. I’m not sure what you mean by getting creative. Could you please elaborate if you have time? In this case, there are two years of state tax liens attached to the property ($1,536) but normally I don’t put state taxes on the net sheet. TIA.

Contract Offer Price: $ 49,620.00

Offer Expiration Date: August 1, 2006

Commission @ 6%: $ 2,977.20

Closing Fee: $ 425

Title Search/Policy: $ 150

Document Preparation: $ 100

Pest Inspection: N/A

Document Stamps*: $ 281.71

Deed Prep: $ 100

Express Mail/Wire: $ 60

Recording: $ 10

Association Dues: N/A

Repairs Itemized: P.O.C.

Pro-rated Taxes*: $ 177.58

State Taxes Owed*: $ 1,536

Total Closing Costs**: $ 5,718.49

Seller’s Net Proceeds: $ 43,901.51

  • Document stamps, tax proration, and state taxes owed are approximate

** Closing Cost figures are approximate


You should include the taxes on the net sheet. It’s a seller expense and shouldn’t cut into any profit margin you create. I’ll e-mail you a sample of the itemized costs a bank will incur if they decide to NOT do the short sale. I think it’s visually persuasive.

  • SHort Sale Mike

Mike, awesome info! Thanks! I hope to reciprocate your kindness ASAP! This is the most useful stuff I’ve seen yet!


I’ve had so many people requesting the same document, I decided to put it on my website in the Short Sale Toolbox as a free download. See what you started. :wink:

  • Short Sale Mike

Thanks again, Mike! This is one creative idea!