Compensating The Owner On A Short Sale.
OK, I understand that the owner can't receive compensation out o fthe loan proceeds.
HOwever; I know that people are compensating them in different ways, some legal some not. I have thought of paying 2K through my construction company for "cleanup and vancating the property"
What am I missing?
You can also but any kind of personal property, with a bill of sale of course. This does not hv to mentioned on the HUD. Antique furniture and pearl necklaces are expensive sometimes.
Moving expenses also are acceptable i thnk.
These disbursements should not be itemized on the HUD 1 as they would probably violate the terms of short sale approval. Generally, the formal (written)approval will specifiy the minimal net proceeds acceptable, plus a requirement that any surplus between proceeds, and allowable, preapproved, expenses be made payable to the mortgagee.
Another avenue would be to make a dedicated, charitable and tax deductible gift to a nonprofit org who would, in turn, make a gift to the former homeowner.
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Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....
[ Edited by TheShortSalePro on Date 05/18/2004 ]