Foreclosure University Forum

short sale close questions

by rad, Thursday, December 30, 2004, 20:58 (5259 days ago) @ Mia

If the bank accpeting the short pay off asks for a HUD 1 - do they see the
transaction between me and the new buyer>

All the bank wants to see from the HUD is what they are netting from the deal. This is not the acutal HUD they use, you don't have those numbers yet. Yes, they see who you are selling it to. This is why we use the trust to eliminate the chain of title issues. Your name should not be anywhere on the documents.


This shows the family trust getting some money - me as the benficiary and
they have asked for min or payoff or the net proceed from settlement.
Whichever is grteater. That sounds like a problem to me...>

This may be a issue if you didn't set it up correctly. Hopefully you read the section on setting up land trusts. The whole purpose of this is to keep your name off the title. This avoids the whole due on sale clause as well. The trust should never get the money. The trust is set up as a protection for you and the seller. In the event you didn't use a corporation, and you recorded the deed with your name on it, you will just have to find a lender who accepts what you are doing and go with it.

1. Is there any problem with the new buyer getting a mortgage> If the
property is now in the family trust is title ok when viewed by new
mortgage company> I recorded the deed 12/21 and expect to sell by

1/27.

This is what is so great about setting up trusts...you can eliminates

most

chain of title issues.

2. If we do a simultaneous close - I can sell to the new investor

first

(with the rights given to me by the trust) for agreed amount and then

pay

off the lender in the amount of the pay off agreement second>


Yes you can, just make sure you can find a title company willing to do
this. Some states will not allow this.


3. Who is the check made out to for the money left over - the family

trust

or me personally>

Whoever the beneficiary is - (your corportation)


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