I sent the 2nd mortgage company a very basic HUD but they said it needs more.
They are asking for estimates on Escrow, title, water, sewer, and recording to be shown on the HUD. I am not extremely familiar with how to put this on HUD though.
Also how would you go about estimating these numbers or finding them out. The property is 650k and in a nice area so if anyone has estimates (even if they are extremely rough estimates) that would be appreciated (in NJ btw). He was current on taxes when i started the short-sale a month ago, so I am assuming he might be current on some of these.
Lastly, if he is behind on these then wouldn’t they not even go on the HUD? I would just be responsible for paying them once it closes?
I don’t have to pay the Title Company anything. I’ve made 3 offers on a short sale I’m working on, and the Title Company has probably generated at least 6 or 7 HUD-1’s.
My Title company is very responsive. And when sales fall through, which it’s happened before, the Title Company does not charge me.
Those type of charges don’t usually come up on my HUD. Again, I strongly recommend that a Title Company do it for you. I know mine is very responsive, they get me a HUD-1 when I tell them I have to have it. It’s just one less thing for me to be concerned about.
I have my own HUD1 program in Excel and just estimate the expenses. I generally estimate from other closings although some of the expenses such as tax proration and recording fees are at specific rates depending on your area. You should learn what these fees are if you are going to do short sales.
Items like title insurance and escrow fees, processing fees vary but if you get close on your estimates you should be OK. The final HUD 1 will be done by the closing agent and that is the one that really counts.
I own a Title Company in New York and we do this work for our clients all the time. Stop wasting your time, let the title company do this and work on something that makes you money
Instead of estimates, I would be calling the power company, the sewer provider, the water company and getting the actual figures for the prior years.
Call your insurance agent and get him to give you a quote.
The mortgage company is going to be considering the expenses of the property when they decide how much mney they want to loan you.
The escrow company will be happy to give you estimates for title insurance and escrow fees.
The actual cost of utilities, insurance, repairs, taxes, vacancies should all be done as part of your due diligence before you even think about putting your money down and buying a place.
If you are keeping it, you must know the expenses before you can possibly know if it will cash flow.
If you are re-selling it as an investment property, any buyer is going to demand to know what the actual expenses are before they will consider buying it.
So you are going to have to put those figures together, anyway.