The HUD 1 is the final settlement statement.

The bank is simply a 3rd party with a lien on the property who will ultimately accept a settlement offer on the debt.

Unless there is more to the structure of the deal than you have told us, the charity is working with a property buyer who just happens to be purchasing the relinquished property in someone else's 1031 exchange.The presence or absene of an exchange seems incidental to the deal.I am guessing that the charity is working with a buyer who is using a loan program that does not permit seller assistance with the downpayment, but will allow the downpayment to come from a charity, but has a property under contract with a downpayment concession from the seller.The seller "contributes" the amount of the downpayment to the charity, and the charity funnels the money back to the buyer as a gift at the settlement table.

As to the issue of getting your insurance coverage while you wait for insurance companies to fight it out, this is generally an issue of subrogation or waiting for a third party claim settlement.

A good Option Contract will provide the terms of the option, the sale price and how settlement will be accomplished and at what contingencies.

Unfortunately, since both is portfolio and the equity took a hit, all we had to do was give them a modest settlement to release.I would go over the terms of the note to see if this was the case with this loan.

If anybody can suggest (or delete) other points I'd be grateful.This is really for 1-4 unit residential properties.Pre-Buy Checklist1) Demographics, ages, percentage of renters to home owners, incomes, type of jobs, type of renters2) Job centers, taxes, services, fiscal solvency, construction, renovation, land use laws, civic pride, gentrification3) Sales and rents trends, cap rates 4) Transportation, freeways, congestion, public5) Vacancy rates6) Property taxes, utilities increases, growth corridors, nearby office construction, replacement costs compare to new construction, 7) Growth in jobs, economic base, and population8) Weather patterns, natural disasters9) Building: architectural styles, materials, purpose built or conversions10) Established rental management companiesPurchase Checklist1) Inspections: property inspector, structural engineer, pest control expert2) seller disclosure statement, 3) statement of income and expenses, sellers IRS Schedule E4) Lot size and value5) Verify code compliance6) deferred maintenance7) space, view, natural light, noise8) Personal property & fixtures9) All co-owners present10) Site boundaries 11) Improvements 12) Clear title13) Deposit conditions14) Condition of property15) Escrow credit for repairs, 16) pre-closing casualty losses 17) Settlement costs18) Dates of closing and possession19) Tenants leases and rental info and their property20) Contingency clauses, environ, hazards21) Insurance22) Read all leases, check for rents levels, concessions (one month free rent etc), who pays utilities, yard care, snow removal, furniture and appliances, duration of leases, security deposits. 23) Ask tenants to confirm their terms of lease.

Some banks will do that on a porfolio loan basis, but there will probably be an appraisal, points and settlement costs and you won't be at a rate much lower than a private loan.

The HOA dues could be assumed and excepted at settlement with seller financing and a special warranty deed, otherwise with the option or CFD, such can be assumed and paid when you sell it.

It should spell out the usual and customary settlement fees.