Posted by Jim FL on December 18, 2004 at 09:47:13:
Nope, not shooting yourself in the foot at all.
I too provide a HUD-1 on ALL transactions I close.
Especially the sub2 deals.
The HUD-1, along with a copy of the purchase agreement has been enough for those credit worthy to obtain new financing on another home.
Sometimes this is not enough, depends on the lender.
When it has not been enough, we simply wait a few months after making payments, and provide copies of cancelled checks showing we are making the payments, along with the documentation mentioned above.
Works fine, and has not caused any problems with the DOS clause at all in my vast experience of doing sub2 deals.
Why do i need a HUD1? - Posted by michael
Posted by michael on December 18, 2004 at 24:39:59:
I bought a property from a seller sub2 and closed but never filled out a HUD1 form? Is it mandatory? What’s the purpose of a HUD1?
Re: Why do i need a HUD1? - Posted by J. Christopher
Posted by J. Christopher on December 18, 2004 at 01:04:55:
I always give a HUD1 to my Sellers. Its useful in the event that the Sellers want to buy another house. The Sellers present the HUD1 to their new Lender to show that they no longer own the (subject 2) house.
Hope that helps,
Re: Why do i need a HUD1? - Posted by njdave
Posted by njdave on December 18, 2004 at 05:50:11:
Wouldn’t the HUD1 also disclose that despite no longer owning the home… they are still on the hook for the mortgage? And, most likely in violation of the DOS? That should convince a lender to make another loan…talk about shooting yourself in the foot.