What Is A "Preliminary HUD-1" And Why Is It Critical To Short Sale Success? Sarasota, Bradenton, Venice, Lakewood Ranch, Florida

By
Real Estate Broker Owner with Real Property Management of Sarasota & Manatee

Why Short Sale? – FREE information on Foreclosure Defense, Mortgage Modification, Tax Consequences, Deed-in-lieu-of-foreclosure, Short Sales, Deficiency Judgments, Bankruptcy Referrals & more. John Michailidis, SaraMana Properties – Phone: (941) 822-5221

Sarasota, Bradenton, Venice, Manatee County, FL, Stop Foreclosure, Short Sale

 

 

What Is A "Preliminary HUD-1" And Why Is It Critical To Short Sale Success? Sarasota, Bradenton, Venice, Lakewood Ranch, Florida

HUD-1 Form - SaraMana Properties - FloridaThe Preliminary HUD-1 Settlement Statement form (Department of Housing and Urban Development Form #1) is basically an accounting balance sheet that real estate closers use to track all of the funds in a real estate transaction. It's a two page form that tracks all of the monies going to and coming from (debits and credits) both the buyer and seller. An example of page 1 of the HUD-1 is shown.

Understanding the HUD-1 Form (actually, the closers and agents you work with are the ones who actually have to know and understand the form) is critical to your Short Sale success, because this form must be submitted to and approved by the Short Sale Lender prior to closing, and any deviations from approved costs and credits can lead to a postponement, or cancellation of the closing.

Other than making sure that you only work with knowledgeable and experienced Short Sale Professionals, the thing you need to know about the HUD-1 is that it is a very precise document -- if it doesn't match up exactly with what the lender has approved there will be problems!

A Short Sale Approval Letter contains very specific instructions and conditions upon which the approval is based. It spells out exactly how much money the bank will allow for closing costs, commissions, taxes, credits, etc., and who may, and who may not pay for them.

So long as the Preliminary HUD-1 (it's "preliminary" because the deal hasn't actually closed yet) matches up with the approval letter, and the lender receives a copy and approves it at least 48-hrs prior to closing, you shouldn't have any problems closing your Short Sale!

The SaraMana preForeclosure & Short Sale Assistance Team helps Short Sale Buyers, and Property Owners in Sarasota, Lakewood Ranch, Bradenton, Venice and throughout Manatee & Sarasota Counties Florida to STOP Foreclosure, potentially Avoid Deficiency Judgments, Successfully Short Sale their homes, and move on with their lives.

For more information, Call 941-822-5221, or use this ONLINE FORM.

 

CLICK to register for our Next FREE Foreclosure Help Seminar

 

Posted by

All the best!
Real Property Management of Sarasota & Manatee
of Sarasota & Manatee

Office: 941-225-8183

Web:
www.SaraMana.RealPropertyMGT.com

"Sarasota & Manatee County, FL Zip Code Market Area - Short Sales, preForeclosure 34201, 34202, 34203, 34204, 34205, 34206, 34207, 34208, 34209, 34210, 34211, 34212, 34215, 34216, 34217, 34218, 34219, 34220, 34221, 34222, 34228, 34243, 34250, 34251, 34260, 34264, 34270, 34281, 34282, 34229, 34230, 34231, 34232, 34233, 34234, 34235, 34236, 34237, 34238, 34239, 34240, 34241, 34242, 34272, 34274, 34275, 34276, 34277, 34278, 34293, 33834, 34251, 34284, 34285, 34223, 34224, 34284, 34285, 34286, 34287, 34288, 34289, 34290, 34291, 34292, 34293, 34295

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Home Buying
Location:
Florida Sarasota County
Tags:
hud1
short sale
short sale approval
stop foreclosure
short sale agent
sarasota
manatee county
florida

Comments 6 New Comment

Rainmaker
335,546
J. A. Michail
Real Property Management of Sarasota & M
Real Property Management of Sarasota & Manatee

@Gail: In Florida, agents don't have to get involved in HUD-1's either, unless they actually want their Short Sales to close.

March 18, 2011 10:08 PM
Rainmaker
172,050
Laura Forman
Your Brevard Premier Property Specialist
National Realty of Brevard www.LauraSellsBrevard.com

That is a good point to be sure they match up to the lender's expectations to avoid problems and delays.

March 18, 2011 10:16 PM
Rainmaker
335,546
J. A. Michail
Real Property Management of Sarasota & M
Real Property Management of Sarasota & Manatee

@Laura: Right you are!

March 18, 2011 10:32 PM
Rainmaker
930,507
Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

John, as agents we need to know the HUD-1 and be able to explain it to our clients.  Sometimes there are errors that we might catch saving our clients thousands.  It's happened twice in the last two years where I caught something on the HUD that saved my client money.  Once I caught an error at the closing table and of course I was very respectful of the attorney present.

March 20, 2011 05:37 PM
Rainmaker
335,546
J. A. Michail
Real Property Management of Sarasota & M
Real Property Management of Sarasota & Manatee

@NIck: I agree with you.

March 20, 2011 05:59 PM
Rainmaker
335,546

J. A. Michail

Real Property Management of Sarasota & M
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information




Real Property Management of Sarasota & Manatee is a full service residential property management company specializing in educating and assisting Sarasota and Manatee County, FL property owners and investors to effectively manage their rental real estate while maximizing revenue.

Our expert team of property managers, leasing agents, and maintenance personnel has an unrivaled reputation for successful property management solutions throughout the greater Sarasota and Manatee County, Fl areas. Call 941-225-8183 today for a FREE Property Management quote.