Seller’s Preliminary Disclosure Form Question
Hello all,
I am doing my first short sale in Brooklyn. It’s been going smoothly thus far with submitting the paperwork. However, the servicer has not accepted our preliminary sellers disclosure twice now. Both comments are “The net amount can’t be more than the offer amount”.
On the Preliminary Disclosure (Line 520 on HUD1) the total reduction amount due to seller is $638,800 (1st and 2nd Mortgages with closing costs). The offer price is $450,000.
Also, the BPO came in at $620,000 and the Payoff Letter says $850,000 is the total owed on the loan with arrears.
The customer service representative says we are still in the underwriting phase and it hasn’t been brought to the investors for final approval and this is the last thing holding it up. By them saying “The net amount can’t be more than the offer amount”, are they hinting that our offer is too low and we need to come up a bit?
Any advice or assistance would be great. Thanks so much.
Julian