Expert: Karyn Foley - 12/25/2008

Question
We signed an AOS for $300K for a short sale house. We also had to sign an addendum for $15K for the owner. When my agent learned the Addendum was not going to be put on the HUD-1 he said it was illegal (after checking with his brokerage owner). The bank has the $300K offer for review and do not know about the 15K.
The sellers agent says it is legal (but they also own the Title company we had to sign to make sure we used them) Does everything have to be on the HUD?  
We still desperately want the house.

Answer
Dear Bob:  You  are the one who should call the title company, the owner or manager of the brokerage company, and asking directly why or why not the addendum should or should not be going on the HUD form.  Take down their notes, or record their answer with their permission, so that they will be held accountable for this situation.  Or, spend a few dollars and ask a real estate attorney, or go to one of the small para-legal storefront locations and discuss this with one of them.  You are asking a legal questions from people who are giving you a legal answer, but who are practicing law without a license.  It is worth a few dollars to you to do what is right in order to stay within the legal and professional guidelines.  Good luck to you, and let me know what happens.