Posted by bruceb on September 10, 2003 at 19:28:35:
I have closed on ten deals this year, where I was not on deed & title. My title company & attorney listed me as Equitable owner. Both the Seller and I were paid on the same HUD-1. We actually used a separate sheet on how the proceeds were divided up. In all cases the seller was at closing and each of us received $.
In your case with a short sale, perhaps you could have POA for the seller and sign the agreement of sale using the POA. I would think the lender would be Ok, they look at the title binder given them by the closing title company and it would show the current seller on title.
I would think that there is a way here, using control of the deal with a POA, to divide up profits accordingly.
Perhaps as this will open some much needed discussion on this subject.
Bruce
Jo is correct. With a short sale, no lender would go for a discount like this while someone else walks with a 30k profit. Also, the POA is a good idea, but from what I have found lenders will not allow you to close a short sale with a POA…at least thats what Countrywide has spelled out in there closing instructions for this deal. Even if they would, you can not show the profit to them and it will be reflected on the HUD-1. It should be interesting to hear the expert speak today.
Bruce good ideas, but Countrywide is not going to do a short sale and watch (the HUD-1 will reveal) a third party (Sean) clear 30k. This is a very complex and difficult and touchy area for the final lender also.
I would still like to hear from all the “experts” that say they do this regularly. If you do, how do you deal with the issues raised?