The questions that you are asking are extremely good questions. When it comes to condos here in Miami, not doubt elsewhere too, due to the amount of owners that defaulted on their condos with their mortgage and condo fees, many condo associations found themselves in situations where they had no reserve funds. FHA has not renewed many of the condo buildings ability to offer financing and in many instances FNMA has limited which condo buildings qualify for financing as well. For the most part many buyers of condos are paying all cash, or placing between a 20-30% as a downpayment. Additionally, I have had a few buyers that have just obtained personal loans to finance their purchase and because the loan is not secured by the property they have not had any issues in getting to closing.
If you do decide to purchase the condo for all cash, having the title company redo the HUD 1 would take all of 5 minutes as it is then just removing closing fees related to the loan. The short sale lender would not have a problem with the change so long as you do have the funds to close. At most they would ask you to provide bank statements to show that you do have the ability to make the cash purchase. Good luck with your closing, Should you have additional questions please feel free to contact me.
RE/MAX Advance Realty
Since you are paying cash, the bank will be eliminated from the transaction, so they will have no say in what goes on.
The only person you have to work with in an all cash deal is the seller; and it is highly unlikely any seller will turn down an all cash deal if you have already agreed upon price. There is total certainty in cash. You and the seller are the only parties involved.
The title company will not care if you move to all cash. Drawing up another HUD-1 will take them no time. They just cut and paste on their computers. Also, if you pay cash, instead of getting a mortgage, you will save some money in closing fees.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
Closing Statement HUD-1 is easy to prepare it. Rush your agent and the Listing Agent to find it as soon as possible to present it to the seller's lender.