Adding Repair Costs To A HUD?
Okay, so my wife and I have been making millions of dollars for other companies. Finally took ownership in our own venture last year. So, Learning curve is really up there gang.
How about this in our short sell paperwork?
Can you have/own two properly licensed companies - one doing business as the real estate management company and the other as a contractor/sub-contractor (for the rehab part) and actually add the estimated legitimate costs of the repairs of "said dwelling" to the HUD funds dispersion sheet so that you can get your rehab contractor (subsequently your construction company) pre-paid for the repairs at closing?
I know the companies we used to work for did this when they were doing rehabs on properties they owned but were gaining re-financing for - but can we also do this in the short sell game as long as the bank passes it?
Any suggestions on this would be most helpful.
When a mortgagee is asked to accept less than it's due, they'll predicate their decision and minimal net recovery (payoff) upon the confirmed, as-is value of the subject property... less legitimate (sellers') costs of sale. Since most of the mortgagee approval letter/closing instructions mandate that the property is to be sold in an as-is condition, I doubt that the short would be approved if the HUD1 indicated that proceeds were for repairs...
EXCEPT in the case of a purchase money mortgage loan in the variety of an FHA203K...
[addsig]