With a week dedicated to Title procedure and padding the HUD, today’s spotlight is on dealing with a first-class Title Agent. If you are wondering what you pad in HUD, this is where a trusted Title agent comes into the picture. Understand that the reason you need to have this sort of Title agent is because they need to appreciate that occasionally you may need to pad a HUD a little more than other real estate transactions since you are dealing with a distinctive state of affairs called a short sale.

Much like the differences in real estate specialists, there are differences with title agents that deal with short sales. Remember that if you are working with an escrow officer that has been in the industry for 30 years and has always done things in one explicit way, you will most likely get a little resistance. You may want to ponder the mindset of the person that you are dealing with that won’t have to work outside of their comfort zone.

Beginning in 2010 the mortgage lending industry received a new Good Faith Estimate (GFE) and HUD-1 Settlement Statement designed to protect borrowers from unscrupulous lenders and mostly mortgage brokers. The idea was to provide more transparency in mortgage lending. Instead it created a lopsided playing field resulting in mortgage brokers being required by law to give all of their yield commission back to the customer and allowing banks and lenders to keep theirs a secret.

Oddly enough the result of forcing the broker to return all of their yield commission to the borrower has turned out to be a blessing in disguise because the broker now handily presents a better offer in many cases. In the end the new GFE does not protect the borrower from banks who “jack the interest rate” to make more premium.

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