Recordsclerk, had your escrow closed the payout to the second lender would have been on the HUD. It would not have been hidden and the first would have known about it when they reviewed the HUD.

As far as secret goes, once more it is all about strategy and working the deal out as it moves forward. Generally you get approval in stages from each entity.

However the bottom line is that all payouts to all parties are going to be on the HUD. All parties will know who got what and when they got those funds. It is presentation and the timing of it that is what is important.

Scarlett remember that the contingency period does not start until after all approvals have been delivered and those are written approvals. So after it is all said and done and you get the approvals and you do your inspections and you are uncomfortable because you will not have enough money left over you simply back out and get your deposit back as long as it is done prior to contingency removal. Remember, approval by the lender is the BEGINNING of the process not the end of it with respect to your own due diligence.