I am a REALTOR. I help clients with short sales. In the past we had to have the escrow company prepare a HUD1 to submit with Purchase and Sale to short sale lender. With the new regulation, escrow can no longer prepare the HUD1. I have a short sale offer in place with lender and they will not move it forward to review without a HUD1. They say they are aware of the regulation but they still require HUD1. We have given them the SELLERS 'S ESTIMATED SETTLEMENT STATEMENT but I am told that will not work. This is the first short sale that I have done since the change, not sure if other lenders are doing this. 
