I will appreciate if you can guys can give your opinion whether the contractor is reasonable with his numbers.Scope of work:*Install new carpeting and flooring throughout (About 1,000 sq. ft. of flooring)*Replace damaged ceiling tiles in living room (replace 3 fiber glass ceiling tiles)*Replace kitchen ceiling and repair damaged wood (water damage in the kitchen ceiling, the plaster will be taken out.

When they come to get my guns, bullets will fly!

it sounds like you need a proof of funds letter with the hud-1.

Only one lender (Citimortgage) said, "As long as you can justify the new sales price with proof of renovation (invoices, receipts, etc.), you can immediately use the higher appraised value for resale purposes."

Also, we had proof that we had sent the statements.

Do we need to record the land contract at the court-house to make this more audit proof?

I'm not sure how this is going to play out, but I was very surprised that section 8 didn't even want proof of damages or reciepts.

We will find out today, where we stand, but the success in this is that we succeeded in getting over 8M in proof of funds to put this deal together.

When they ask for proof of funds - would the seller provide their CD details directly to us or the lender?

You also create a HUD statement, showing that the owner is getting no money in return for this short sale.So if the home is worth 100k and you can show proof that it needs 30k-40k in repairs, then you put a offer in for 45k and see what the bank tells you.They will send a realtor by to confirm your evaluation of the property.Hope this helps you.