Foreclosure University HUD-1

Short sale home in Arizona.

October 14th, 2008 by Jarad

Question: I just purchased a short sale home in AZ. GMAC had the 1st position and Indy Mac had the 2nd position. We signed and the short seller signed. The HUD was sent to title and it was registered and released. However, the short seller and broker says we still owe Indy Mac 15K and won’t get the home. Can this be possible?

Answer: -Sure, if that’s what you negotiated with them. On the HUD it should show the amount each lender will be receiving. The 2nd always wants something in order for them to release the lien or else it makes no sense for them to do it. They’d be better off letting it go to auction and hope someone bids past the opening bid. The 1st typically wants to know how much the 2nd is receiving because they don’t want them to get anything, which is why sometimes it has to be handled outside of closing.

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