For those of you that haven’t seen Group 46:10 or shortsalepowerhour.com already, Kevin and Fred are rather casual. So, if you don’t care for their dress or appearance, we hope that you at least gather some good details from their content.
Today Kevin and Fred would like to speak about a maneuver called padding the HUD and the entire title portion of the short sale deal. In particular, we’ll give you a few details regarding padding the HUD with the next few episodes that ensue relating to other detailed tactics with your title officer.
Recognize, when we use the term ‘padding’ we are referring to the estimation of the fees that you put on your initial HUD. The motive for doing this is that lenders like to strip away and negotiate fees even when they don’t need 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 transaction. A bank may inform you that they do not strip fees away, but try sending in a HUD with the smallest possible fees on it and see if the bank tries to strip some of those fees away. You will quickly learn your lesson.
To tell the truth, you may not be able to send an accurate HUD because of the flexible closing date. A lot of things are projected like home owners association fees, taxes, and other little fees. Frankly, if there weren’t any counteroffers this possibly wouldn’t be needed. There were lots of occasions in the beginning of this business where Kevin and Fred didn’t pad the HUD and ended up taking a hit on their commission.
The final thing that you need to keep in mind is that padding is not illegal or immoral. Much like a home buyer that can afford $200,000, but makes an offer at $190,000, they are simply protecting their interests.
Get powered up by Kevin and Fred at Short Sale Power Hour by the Short Sale Specialists of Arizona
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