Newbie Question

[Keith Schellhardt]

I am involved in my first Short Sale negotiation and the currnt lender to the current note holder requested that I submit a contract to purchase the property to the current note holder.

The current note holder will submit the offer to the current lender with a letter of hardship and supposedly a HUD1 settlement statement. What I dont understand is why the HUD1 statement at this time whenever we dont even know if the lender will accept offer. I thought the HUD1 was done at actual time of closing from the Title Company.

Can someone explain the correct procedure and how it works?

Thanks.