Gopher Posted August 5, 2008 Share Posted August 5, 2008 (edited) So, I'm in the process of "applying" for a short-sale with our lender. Our house has gone down in value big-time, and we owe far more than it's value at this point. Due to the circumstances involving my job and my wife's current situation, it's better for us to go this route and look for a rental than for me to continue the horrible commute that I currently have. Not to mention, my job is moving again in three months, at which point we both may be looking at a 90+ mile commute daily through horrible traffic. Here is my question... Please keep in mind that I'm certainly no expert when it comes to mortgage/escrow stuff, so this may sound somewhat stupid to those who are more knowledgable in this area: The lender is asking for a list of things, including a hardship letter, in which I explain why it is that we feel we should be considered for this short-sale to be approved. One of the things they are insisting that we provide is a "HUD-1" form from our escrow company. However, my realtor and the relocation company that I am working with both tell me that we have no HUD-1 form, since the offer we have is from my employer. In other words, part of my relocation package is that my employer will buy our house from us. So, the "offer" we have on our house is actually an offer from my employer to buy our house at its appraised value (actually the appraised value from when it was appraised three times back in March/April). We have a purchase "contract" from them, which tells us what they are willing to pay us for the us (which is much less than our loan). Given the fact that the house continues to go down in value, it seems to me that the lender might be best off accepting this offer, rather than run the risk of us foreclosing on the house. Since the offer is somewhat fixed, and can be extended, it continues to look better and better as the value of the house goes down. However, the people I have talked to from our lender's office insist that we must have the HUD-1 form to be considered for the short-sale. What am I missing? I'm getting conflicting reports from all parties involved, and I don't know enough about this to tell who's right or what I should do next. Should I just send in what I have, and try to explain why we don't have the HUD-1, or is there a way for me to get one easily to satisfy our lender's requirement? Edited August 5, 2008 by Gopher Quote Link to comment Share on other sites More sharing options...
Big John Posted August 5, 2008 Share Posted August 5, 2008 Also an update of this Quote Link to comment Share on other sites More sharing options...
darin3 Posted August 5, 2008 Share Posted August 5, 2008 Wait, your lender is asking for the HUD-1 statement? That's a little odd, since they are usually the ones that prepare that... or in some cases (and I believe in California), your escrow officer. The HUD-1 is simply an estimate of closing costs. Are you sure they're not asking for something different? Quote Link to comment Share on other sites More sharing options...
Gopher Posted August 5, 2008 Author Share Posted August 5, 2008 Nope... that's what they're asking for. Quote Link to comment Share on other sites More sharing options...
darin3 Posted August 5, 2008 Share Posted August 5, 2008 Nope... that's what they're asking for. An escrow company should be handling the transaction, no? I'm not too familiar with short sales, but I think an escrow company should still be involved. They would be able to prepare this statement for you ... and like I noted in my first post here, I'm surprised that the lender isn't able to make a HUD-1 statement for themselves. Odd. Let me know if you need a suggestion for an escrow company up there. Quote Link to comment Share on other sites More sharing options...
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