Discussion Forum

Hud - 1

Posted by: Mo
Posted on : 6/6/2011 6:36:58 PM

Quick question.

If I'm doing my own HUD 1, should I put that the loan is a new loan (which to me it is) or a loan taken subject to (line 203)?

Also, on line 603 of the Hud 1, I should just click cash to seller, even though they've only given me earnest money, I should put the principle amount I'm financing them for, correct?

Thanks

Re:Hud - 1

Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 6/6/2011 7:16:42 PM

Mo,

If you are taking sub2, yes, use line 203.

Not sure I understand your other question.

Don't forget we have a free HUD generator right here on the site. FREeasy HUD.

http://www.sub2deals.com/downloads/default.aspx

William Tingle
www.Sub2Deals.com
williamtingle.com
williamtingle.us
williamtingle.net

How beautiful would this world be if we all practiced what we preached?

Freeasy

Posted by: Mo
Posted on : 6/8/2011 10:17:32 AM

Thanks for the link and suggestion.

I should rephrase the questions:

First question, if I am selling, do I put "subject to" or a "new loan"? I'm thinking new loan since I am creating the note.

Also, about line 603, it show the principle amount, that is to say $126,000, that I am Owner Financing. It scares me a bit to think some IRS agent/CPA is going to say I netted 126,000, when in fact I only owner financed this deal. Do you have any comments?

Re:Freeasy

Posted by: WilliamGA Still Master of ALL I Survey
Posted on : 6/8/2011 1:55:57 PM

Mo,

Yes, when you are creating the selling HUD, the amount you are financing will go in the "New Loan" catagory.

If you are selling with owner financing, you only pay taxes on the amount as you receive it. This is installment income.

William Tingle
www.Sub2Deals.com
williamtingle.com
williamtingle.us
williamtingle.net

How beautiful would this world be if we all practiced what we preached?

Thank you sir!

Posted by: Mo
Posted on : 6/14/2011 10:51:14 AM

nt