As a short sale processor, how do you add your fees to the HUD-1?

[NJbird_dog]

Chase bank just told me they only offer $1500 to a short sale processor.

I've heard of some short sale processor's charging up to $10,000 in Misc. fees that they get approved by the bank.


What type of fees are you charging to process short sales?

[lauraalamery]

Banks are catching up to junk fees put on the HUDs.

I suggest a straight short sale processor fee (I usually ask for $2,000) payable to a short sale processing company (could be one of your company's registered trade names) and than ask for Seller's Contributions up to 6%, in which you can put consultation fees.

[Real Estate Seller]

When we do a short sale with Chase we get from $6000 to $15,000 depends on the home.

[NJbird_dog]

When we do a short sale with Chase we get from $6000 to $15,000 depends on the home.

Can you please elaborate, what type of fee do you add? Where on the HUD do you place it?

[Real Estate Seller]

Our fee is not on the HUD. The bank pay us direct.

[NJbird_dog]

Our fee is not on the HUD. The bank pay us direct.

First time I'm hearing this, how do you arrange payment?

[Real Estate Seller]

Once the deal closed we send a invoice and then we get a check within 5 business days.

[NJbird_dog]

I dont get it...

At what point do you tell the negotiator that you'll be billing them separate from the HUD?
How is your fee determined?
Which department do you send the invoice to?
Where do the funds come from if the deal is closed?

Sorry for all the questions...

[Real Estate Seller]

At what point do you tell the negotiator that you'll be billing them separate from the HUD? In our agreement
How is your fee determined? By the short sale price
Which department do you send the invoice to? Accounting
Where do the funds come from if the deal is closed? From accounting funds at the bank

You must be new in real estate? Have you ever did a short direct?

[NJbird_dog]

I'm definitely not an expert, just closed a few basic short sale deals. I haven't heard of the short sale fee being paid outside of closing so I guess I am pretty new at this.


I'd like to give this a try with a deal I just received today. How can I learn more about the verbiage to put in the agreement and the details to understanding this method? Would you mind giving a run down on this forum?

[Real Estate Seller]

If you are doing the short sales yourself you need to tell the seller how you want to be paid. Are you dealing with a direct contact at the bank?

[NJbird_dog]

My direct contact at the bank is the negotiator who then has the investor review the HUD-1 and determine the short sale processing fee. Which direct contact do you have at the bank?

[Real Estate Seller]

I deal direct with a person that can make a decision. Before you get to the HUD-1 the bank will provide a short sale approval letter on what it will accept and if the buyer agree then you go to closing. The best policy when you are doing a short sale is show the bank you have the funds to closed the deal.

[NJbird_dog]

I still don't get it..

My current example:
-I have an approval letter for a closing that's expected within the next 30 days.
-I have a HUD-1 that will need a final review/approval by the negotiator before closing.


Those are the only 2 elements I'm working with. So I don't understand your method of having a separate direct contact who handles your short sale fee? What's the title of your direct contact and which dept do they work in? If you were in my situation above, how would you have introduced your fee?

[Real Estate Seller]

I never said I had a separate direct contact to handle my short sale fee. I only deal with one person only from start to finish.

(1) Are you speaking direct with the bank, or a 3rd party?