The HUD 1 Settlement Statement and final TIL will be replaced by the Closing Disclosure (CD).

I would think that you assign your option to the new buyer, sign a separate agreement for release at closing, list the option release fee on the HUD 1 & receive payment for release at settlement? 

I've been told that as long as I have a completed HUD1 Settlement Statement that the bank will count it as a sale and not require me to qualify on two mortgages, but obviously I want to be sure before I proceed.

Sorry if this is a stupid question but obviously I am for a title company or attorney and trying to describe this to another party that is part of the settlement process that I do not want to insult.I appreciate your assistance and advice!

Builders Risk is really designed for ground up construction, even though many investors are told that's what they need because they are unaware of more appropriate options out there.The renovators policy once again has you as the named insured, so that any claims settlements would go to you, the seller as the additional insured and the lender as the mortgagee. 

Title companies don't enforce license laws either, they do settlements.

I know here in Texas a certain degree of settlement is OK and within acceptable standards. 

Typically in this scenario with late payments and what not, I would try to negotiate a settlement amount with the second mortgage to make a better deal.

Perhaps they'd take a reasonable settlement to cancel the contract.  

Is anyone aware of a closing attorney in the Birmingham, AL area who can provide Blind HUDs/Blind Settlement Statements to Sellers?