He's upside down on the loan.The lender, after a thorough exam to be sure he's not hiding other assets, agrees to let him sell it for less than he owes and forgives the balance.Short sales can be a great deal, but they can take anywhere from months to years.  

I'm very transparent and have nothing to hide.

And since they appeared to be hiding it (no disclosures), it made us worried about what was under those new laminate floorboards.We're not afraid of known problems; our first property was a fixer upper.

They're going to charge a bunch of different fees for documentation, recording, couriers, photocopies, bathroom cleaning, and whatever else they can think of and slip onto the HUD-1.

Investment Info:

Single-family residence fix & flip investment in Atlanta.

Purchase price: $499,900

Cash invested: $25,000

Sale price: $765,000

This was a somewhat "accidental" fix and flip i...

Just sharing my mistakes so people can learn the easy way instead of hiding like a coward. 

You don't know what your going to get when you see the worm, it hides and goes away for a few weeks, and when it comes back it can and does easily flutter away.  

Hey Saj - Quick note, Wells Fargo might have hidden overlays saying otherwise, but in general you can use HELOC funds for down payment, cash to close, reserves, etc, without seasoning it, or hiding it, or anything else.

Do some companies try to say they don't charge any points by hiding it in Lender Paid Compensation? 

After initially working with other turnkeys,  we found that it was too easy to hide problems when the rehab company and the management company are under the same umbrella.