On the HUD-1 settlement form, I received a credit on the purchase of the MF for the security deposits and the rent collected from the beginning of the month (officially purchased on the 5th of the month).  

The actual language, I believe, is 90 days from settlement (not recording) until "the date of a contract that results in FHA financing"....not from recording to recording, or settlement to settlement, as we would like for it to be.

Everyone else just wastes a lot of time and money to reach a settlement that nobody is happy with.

Rather the lender will be approving a settlement offer/payoff.I was not aware that the lender had done an interior BPO months ago when the borrower was attempting a deed-in-lieu.

Marlene, good thinking, the simple answer is yes.A sub-2, done as a wrap is an asset in the estate and the underlying mortgage is a liability, the contract will be passed in the estate settlement, The bank will be notified of the borrower's estate settlement.

Why don't you credit your escrows to the price less the balance plus accrued iterest to settlement.

In some states you are not allowed to pay an unlicensed party ANY kind of referral fee etc.Residential transactions are covered under RESPA (real estate procedures and settlement act).Everything must be on the HUD-1 in that case.What you really need to do is consult an attorney in the area you will be referring leads to figure out a legal way to get compensation for the lead.This can be set up various ways depending on the area.No legal advice.

Keep in mind that delays in settlement are often the sellers responsibility.

Absolutely agree with everything Bill Gulley wrote, too, especially the personal guarantee.You MUST have this loan recorded and on the settlement statement (HUD-1) when the purchase transaction initially closes.

Your settlement company (you have to pick one out that you like) OR your loan officer can give you a loan worksheet (loan company) or estimated HUD (settlement/ title company), which will give you a sense of what you will need to pay at closing (it includes all closing fees, transfer fees and such listed out).