With every short sale package the 1st and most 2nd lenders will request and estimated Settlement Statement showing how much they are going to receive from the short sale. The two things the lenders are most interested in is

1) how much are they going to receive and

2) that the seller does not get any money.   Their position is simply this: We’re taking a loss on the loan so the seller better not get anything.

The system we use prepares the Estimated HUD 1 Settlement Statement automatically.  Other options are to find a free program online or to ask your escrow officer to prepare the statement for you. I’ve never been a fan of asking the escrow officer because during the negotiation you may need several estimated HUD 1 Settlement Statements for the lenders.

Please understand the Estimated HUD 1 Settlement Statement is ESTIMATED and need not be perfect.  The goal is to get a written acceptance from the lender. The closing attorney or title company will prepare the FINAL HUD 1 Settlement Statement.

Note: You do not need the seller’s signature on the Estimated HUD 1 Settlement Statements. Just submit them blank because the loss mitigator is not concerned. If needed you have the Power Of Attorney but in my years of doing the business I’ve never had to use the Power Of Attorney in such a capacity.

View a sample settlement form HERE