
Utilizing a Blind HUD-1 with a Hard or Private Money Loan
Hello everyone. I'm wholesaling a deal. I'd like to know if escrow/title will allow me to use a blind HUD-1 when the buyer is taking out a HML or private loan. Thanks.

@Joseph Hernandez
There is no such thing as a blind closing disclosure
Form needs to be signed and acknowledged

@ Chris Seveney
Is a blind closing disclosure the same as a blind HUD-1? I was told from a few different wholesalers that escrow/title will do a blind HUD-1 if it's a cash buyer. The seller will not see the buyer's closing costs.

- Real Estate Professional
- West Palm Beach, FL
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@Joseph Hernandez Ask the title company.

This can be done... it's called a seller-side HUD.
It's a request we get fairly often and I quite frankly don't understand it. If you're doing business transparently, the seller should know and understand that as a wholesaler you're in business to make a profit. Either you're providing a valuable service (fast close, no repairs, etc.) that you should be proud of or you're not.
If you're that embarrassed then double close. Oh you don't want to spend the money to do so? I'm shocked.
These same folks redact the purchase price from the PSA and in their assignment agreement don't refer to an assignment fee but rather the "total purchase price"... leaving the end buyer to find out the actual deal at closing.
It's this kind of shady BS that does give solid wholesalers a bad name.

@ Chris Seveney. A disclosure and a settlement statement are not the same. Other wholesalers told me I can do a blind HUD-1 with cash buyers, but I want to know if I can also do it with hard money or private lenders. Maybe I should call an investor friendly title company?

@ Tom Gimer. You shouldn't make such a comment if you do not know every reason why wholesalers use a blind HUD-1. On more than one occasion, sellers cancelled with me because I charged a standard 10k wholesale fee. I don't work for free. If title companies allow a blind HUD-1, I will use it every single time.

@Joseph Hernandez Actually I have seen and heard every reason over the past 20+ years. You need to be prepared to force the sale and double close if your seller balks. There is no such thing as a seller being able to "cancel" a deal if your contracts are solid and you know what you're doing.
Expecting the title company to participate in deceptive games should be the exception, not the rule. We have wholesalers trying to hide $3k assignment fees. That's just nonsense.

@ Tom Gimer. I have to cover all my bases. As you know, some of the deals don't close. Therefore, I need to structure my deals to lessen the probability of deals going south. I never want the title company to participate in deceptive practices, nor will I ever do that. I've been a real estate and mortgage broker for past 23 yrs and I have an A+ rating with the BBB. However, I'm a newbie wholesaler. Please answer two questions: One, roughly how much is a double close? Two, can title utilize a Blind HUD1 if the end buyer investor used a hard money loan or a private loan? Thank you for your input Tom!

@Joseph Hernandez The cost of a double close depends upon the purchase price. The title company will likely reduce fees on the A-->B deal but the recording fees and transfer and recordation taxes (or whatever the local charges are to record a deed) are what they are.
Yes, you can utilize a blind HUD with either hard or private money.