Re: Question on HUD1 and Subject 2 - Posted by Brent_IL
Posted by Brent_IL on April 29, 2003 at 10:57:58:
There are only two actual parties to a RE sale. The one who is buying is one of them and the one who is selling is the other. Banks, investors, lien holders, et, al. have an interest in the property. The terms of the sale are subject to their recorded interest.
If you assign the contract, there are only two. If you do a double close, you are still only doing two at a time.
I can’t imagine explaining a HUD-1 to any seller to make a purchase. That’s what the closing agent’s do.
Never explain anything to a lawyer. You have to gently guide them by asking leading questions and what-if’s. If you have to explain things to your attorney, you need a new RE attorney.
I think you’re offering too much information to sellers that have little interest in hearing about it. Give them only enough to explain your position. If they want more, they will ask. Most do not.
Your asking price is $xxx,xxx. You owe the bank $xx,xxx, so that leaves $xx,xxx in equity. I’ll take over the monthly mortgage payments so that you don’t have to worry about this loan. As you can appreciate, neither one of us is a real estate lawyer. We can have the lawyers put the property in a trust to protect you until the loan is refinanced. Now, let’s talk about the money I owe you for your equity in the property."
“But if I stay on the mortgage, will I be able to get a new loan for my new house”?
“Well, Mrs. Seller, the attorneys will document that you are free of the payments because I’m making them, so unless you have a bank that is unusual, it shouldn?t be a problem. Now, about all the money that I?m going to pay you, …”