It is all about money.  The bank is trying to minimize its loss by taking a short payment as a better choice than any alternative.  So, how much will they get?  The contract will not reveal the net proceeds; therefore, the bank wants a closing statement.

I used to send a Net Sheet for my sales in California, because many of the escrows do not use the standard HUD-1 closing statement.  When the bank rejected an offer three times because the package did not include a closing statement that they could easily spot, I learned my lesson. 

This started my second educational step on the HUD-1.  We bought software to create a HUD-1 and did them ourselves.  When we missed a couple of the charges that should have been figured more accurately, the shortage came out of my commission.

The third education came from unexpected costs that came up at the last minute.  The approval by the lender states that they will accept an exact amount of money, provided it is paid on or before a certain date, and provided that certain other conditions are met. 

So, figure the HUD-1 with some margin for error.   Figure the costs high, to set the lender’s expectations low. 

For a more detailed discussion on this topic, please go to http://shortsalesr.us/short-sale-dos-and-donts/do-an-accurate-closing-statement/.