For those of you that haven’t seen Group 46:10 or shortsalepowerhour.com previously, Kevin and Fred are rather informal. So, if you don’t care for their dress or disposition, we hope that you at least collect some first-class information from their content.
Today Kevin and Fred would like to chat about a method called padding the HUD and the whole title piece of the short sale deal. Particularly, we’ll give you some details concerning padding the HUD with the next couple episodes that ensue relating to other detailed tactics with your title officer.
Appreciate, when we use the word ‘padding’ we are referring to the estimation of the fees that you put on your original HUD. The motive for doing this is that lenders like to strip away and negotiate fees even when they don’t have to.
When you pad a HUD you are building a win for the lender since they get to eliminate some fees and they feel better about the deal. A bank may tell you that they do not strip fees away, but try sending in a HUD with the lowest fees on it and see if the lender tries to strip some of those fees away. You will soon learn your lesson.
To tell the truth, you may not be able to send an accurate HUD because of the variable closing date. Many things are projected like home owners association fees, taxes, and other small fees. Honestly, if there were not any counteroffers this probably wouldn’t be needed. There were many occasions in the beginning of this business where Kevin and Fred did not pad the HUD and ended up taking a hit on their commission.
The final thing that you have to consider is that padding is not illegal or dishonest. Much like a home buyer that can afford $200,000, but makes an offer at $190,000, they are only protecting their interests.
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Tags: foreclosure, loss mitigation, short sale