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What else can I help you with?
In the state of NC does the HUD1 serve as a 1099 for IRS reporting of proceeds that the seller receives?
In the state of NC, the HUD1 can serve as a 1099 for IRS reporting of proceeds that the seller receives. However, if a HUD1 is not received a 1099-S should be completed to report proceeds.
Where does the seller's concession appear on the HUD1?
Under Amount Paid by or in Behalf of Borrower.
How do you enter a principal reduction on new hud1?
Enter this as a cost to the Borrower on Line 105.
Currently have a rental property which has a negative cash flow -250 a month- due to an adjustable rate and the market value is 64 percent below the remainder of the loan-What should you do?
What you "should" do will be greatly determined by your ultimate goals. For example, if that negative cash flow isn't a burden and you want to keep the home for 30 years, it may make sense to contact your current mortgage holder and negotiate a fixed rate on the existing loan. This will provide you with more stability than you currently have and you can wait for your equity position to improve (hopefully). Your lack of equity will prevent you from refinancing with another lender and will not allow you to participate in many government sponsored programs, but your lender may work with you directly (especially if you are having difficulty making the payment). If this property was a short-term business decision and the negative cash flow is a hardship, then as any business would, you need to assess the viability of this asset/liability. If you can not afford to hold on to the home long enough to regain equity and the investment really offers you no returns, then you may want to consider a short sale. You would list the home with a broker, and negotiate with the bank to accept offers based on current market value. PLEASE NOTE: this is a serious step and could have significant affects on both your credit and your tax liability and WILL prevent you from buying a home for at least a couple years under current FNMA guidelines. Many people short-sold homes thinking that another purchase would be no problem since a "foreclosure" didn't appear on their credit. Even if your credit does not show that the debt was settled, lenders may see your recent sale and request a "net sheet" or HUD1 from the sale and will see that it doesn't match your loan balance. Either way, you should approach this question as a business since that is the way the home is being used. Make a business plan with the goals you have for this asset and determine if the liability it carries makes sense according to those goals.
