Pinecrest Florida Real Estate and More...: The Importance of Carefully Reviewing the HUD Statement

The Importance of Carefully Reviewing the HUD Statement

 

You have found the house you want to purchase; you’ve gone through all the negotiations, loan requirements, inspections, appraisal, etc.  Weeks have gone by and now you’re at the closing table – the key is just a few minutes away, but wait, there’s one more hurdle - the HUD Settlement Statement.

The HUD statement (Department of Housing and Urban Development) is a document that itemizes all debits and credits to the Buyer and the Seller.  It’s a list of what you are paying, to whom and for what, and what credits are being given to you.  You really should receive your HUD statement at least one day before closing; but in real life, that usually doesn’t happen.  Most times you will see the HUD statement a few hours before closing and sometimes not until you get to the closing table.  In the anticipation of closing and the excitement of moving into your new home some folks don’t take the time necessary to really look over the HUD statement; and that can be a costly mistake.

Fees such as processing fee, post closing fee, scanning fee, image fee, research fee, negotiating fee, signing agent fee, etc. all are questionable.  Have the person conducting the closing go over every line of the HUD statement and explain it clearly to you and your real estate agent.  I saved a client of mine $350.00 this week because I knew there was a fee on her HUD statement that was no longer legal and the title company was collecting it.

So, go over your HUD statement carefully, and if everything looks good to you, sign away – and congratulations!

 

 

 

Marie StoryMarie StoryMarie Story QR Code

Broker Associate, ABR,CIPS,GRI,TRC        

Celebrating My 21st Year in Real Estate

Coldwell Banker 

12651 South Dixie Hwy

Pinecrest (Miami), FL 33156

305-776-0010

Pinecrest Florida   ~ My Website   ~   Pinecrest Homes For Sale

Comment balloon 75 commentsMarie Story • September 23 2009 11:18AM

Comments

Good advice! I've also found mistakes that needed correction before closing. I've also found items I wasn't sure about, and through questioning them, educated myself. That's what we get paid for.

Posted by Jon Budish (Resident Realty) almost 10 years ago

That's right John; taking care of our clients, that's what we get paid for.

Posted by Marie Story, Broker Associate, Pinecrest (Miami) Specialist (Coldwell Banker - Pinecrest (Miami)) almost 10 years ago

Sadly, few agents are able to analyze a HUD-1 and just look at it with their eyes glazed over.

Over the years, I've discovered mistakes on HUD-1s with amounts up to in the $4000-$5000s.

Sadly, I've also revealed title companies that, through complicated posting of credits and debits, have made mistakes that benefit only themselves. 

I've got to say, when you find a mistake, the title attorneys are not always grateful.  I don't care.

All agents should learn to read the HUD-1 if they are a true buyer or seller agent.

In fairness to title companies / attorneys, many mistakes begin with the mortgage comany closing office instructions to the title company.  That's the first place to look for mistakes. 

 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) almost 10 years ago

Marie - You're singing to the choir.  I insist on getting my clients HUD1 statements, days before closing and I go through every charge on it.  I typically catch sooo many mistakes on it where the sellers escrow company is trying to pass off charges to my client that are seller charges.

I make sure my clients aren't paying for anything that they haven't agreed to or any service they haven't used.  I even question normal charges if they seem too high.  Just recently I questioned the title charge on one of my clients HUD1 statements and to make a long story short, the sellers escrow company was trying to stick my client with the title charges for a previous escrow that fell out!  SERIOUSLY???

Did they think I wouldn't notice the exorbitantly high cost of their service.  What's that old saying, "I may have been born at night but it wasn't last night".  LOL

 

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) almost 10 years ago

Marie,

You are right on target about reviewing the HUD Statement for errors and misapplication of fees. It is a service that , you as the Realtor owe your Client or Customer. It would be remiss not to review the HUD.

Good post. Something that we need to be called to our attention, periodically.

Joe Pascal (5 Star Real Estate, Inc, Wilmington, NC)


Posted by Joe Pascal (Joe Pascal - 5 Star Real Estate - Serving Wilmington, N.C.) almost 10 years ago

The HUD-1 is a vital part of the transaction. I totally agree that sometimes they are not checked carefully enough. If you have done a few with short sales (as I have), that just underscores the importance of getting the fees right the very first time.

Posted by Melissa Zavala, Broker, Escondido Real Estate, San Diego County (Broadpoint Properties) almost 10 years ago

I recently was involved in a transaction for new construction. I asked the builder, escrow, lender and buyer to provide me with a copy of the HUD-1. I didn't get one from these requests.

Posted by Vickie Nagy, Vickie Jean the Palm Springs Condo Queen (Coldwell Banker Residential Real Estate) almost 10 years ago

Oil proration, those items being bought above and beyond...get them on the settlement statement, get the money at the closing. The POC (paid outside of closing) items can be burdocks coming back over and over and the time to collect is at the closing, when you have everyone's attention and the wallet is open.

Posted by Andrew Mooers | 207.532.6573, Northern Maine Real Estate-Aroostook County Broker (MOOERS REALTY) almost 10 years ago

Lenn, I sadly agree with you that few agents really know how to read the HUD statement.  In my office we try to hold a class address the HUD at least once a year.  But the first place I look for errors is in the title company's fees.

Wow Donne, what a story!

Joe and Melissa, yes, I too feel it is our duty to review these statements carefully.

Vickie, are you saying you closed without a HUD statement?

Posted by Marie Story, Broker Associate, Pinecrest (Miami) Specialist (Coldwell Banker - Pinecrest (Miami)) almost 10 years ago

 Thanks for the reminder. Sometimes when we have been in business a long time and we are working very hard we can forget the basics. This also gives me an idea about a blog post about burn out and what it can do to keep you from paying attention to the important details.

Posted by Joe Pryor, REALTOR® - Oklahoma Investment Properties (The Virtual Real Estate Team) almost 10 years ago

Thanks for the tip.  The only issue of course is actually getting it 'days before' closing.  That can be the biggest challenge obviously.

Posted by Jeff Engle, PlacerAreaHomes.com (Neighborly Realty) almost 10 years ago

Hi Marie,

Great post, it's good to be in your clients corner.  I also agree with Jon above, though, you must make sure you know that you're educated regarding fees.  I've found that the better communication I have with everyone involved in the process the smoother the transaction goes, no one likes surprises, me included.

 I can't say I agree that a processing fee is questionable, especially knowing all that processors go through to get a loan completed; I think a reasonable fee for that service is acceptable.

Last month I saw an "email fee" on a final HUD.  It was only $15, but I had to wonder what service provider they were using that charged them for emails!

Posted by Steve Hall (Invicta Solutions) almost 10 years ago

This is a timely blog.  Another agent in my office has a difficult transaction and has asked many questions of the lender, the lender has had trouble figuring what all of the fees on the HUD-1 are.  The funny thing is, he not a new lender.  I think sometimes we get caught up in our busy lives and forget the small, but basic, things we should all be paying attention to.  This is a great reminder that we need to pay attention to all of these things in the best interest of ourselves and our clients.  Great post!!

Posted by Terry Meyer (Berkshire Hathaway HomeServices Sound Realtors) almost 10 years ago

Marie,

That's a great post and it rings so true. Reviewing HUD-1's with your client can be time-consuming or complicated but isn't that what your getting paid for? From the beginning your supposed to be representing your clients interest and that follows through all the way to closing.

I'm amazed at how many agents can't read a HUD-1, how did they ever get licensed?

:)

Posted by Jody Keating, Broker/MM/Realtor, Bryan / College Station, TX (Jody Keating Connective Realty,LLC, Bryan/College Station,TX) almost 10 years ago

Interesting enough, the lender typically approves the HUD prior to anyone ever seeing it.  I wonder if the lender even looked at it in the cases that have been described.  Everyone needs to be aware of what is on the HUD and question anything out of the ordinary.  It seems as if lender fees will be more closely regulated with the upcoming RESPA changes. 

Posted by Kyle D Jan almost 10 years ago

Marie,

Good things to remember. It is a pain when you sit down to the closing table and are getting your first glimpse of the HUD. It is sad too when there is mistakes that just benefit certain companies. Your clients will appreciate you and what you're doing if your thorough and don't get caught up in just closing and take your time.. Good advice :)

Posted by Alyssa Roccanti (Savvy + Company Real Estate) almost 10 years ago

Thank you all for sharing!

I would suggest that the managing Brokers and office managers reading this invite a closing/title company to your office to give a class on understanding the HUD statement.

Posted by Marie Story, Broker Associate, Pinecrest (Miami) Specialist (Coldwell Banker - Pinecrest (Miami)) almost 10 years ago

Going over the HUD1 is part of our duty to our clients and every agent needs to learn how analyze them.

Posted by Cameron Wilson, The Short Guy - Murrieta,Temecula,Menifee Californ (Labrum Real Estate) almost 10 years ago

Very interesting topic and something we discuss a lot here at Closing.com, especially in light of HUDs new Good Faith Estimate form and new RESPA rules that lenders will be required to comply with in January. Our new Web site at www.closing.com was designed to help real estate agents and consumers get an early estimate of their closing costs, well before they arrive at the closing table. Real estate professionals can add value by creating quick estimates for their clients in 4-5 simple steps. We would be very pleased to have any of you try it to see if you find it helpful. We welcome your feedback.

Kristin Ewald, VP Content Development and Communications

Closing.com

Posted by Kristin Ewald almost 10 years ago

Marie, as a lender, I always advise my clients and agent partners to request the HUD BEFORE you go to the closing table.  A good lender will always review the HUD with the borrower before the closing table to make sure the fees and distribution of funds is correct.  Strangely enough, the law requires that we provide a HUD one a minimum of 24 hours before closing, but ONLY if the client requests it.

Posted by Kendall Aschoff, NMLSR ID: 372723 - Henderson Las Vegas, NV - Mortg (SecurityNational Mortgage) almost 10 years ago

Ha!  you want to check it to see if your commission is correct!!

I always go over it,  My commission has been wrong on two occasions so look out.

Patricia

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) almost 10 years ago

which fee are you referring to that the title company was trying to collect?

Posted by Angelia Garcia (Pure Realtors) almost 10 years ago

Just last week the escrow officer did not credit the buyer the option fee of $50.  She corrected and all was well.

Posted by Angelia Garcia (Pure Realtors) almost 10 years ago

I don't know how you can even consider yourself a real estate professional if you can't read and understand a HUD.  I rarely see one that is actually correct the first time around.  Great post.  Our job is to work for our clients and this is just one more thing we need to make sure is correct.

Posted by David Monsour, ABR - www.realty-insights.com (Keller Williams Keystone Realty) almost 10 years ago

You know that is great advice, before Activerain I was in the mortgage biz for ten years and always tried to get the HUD to me and my clients way ahead of time for review. If the Title co. couldn't get it to me in time then that was the last time I used them. There really should be a law on when they get that out....Great Blog!

Posted by ActiveRain Advertising almost 10 years ago

I had 10 years in Mortgage Lending so its easy for me. Huds are not easy to figure out without some training and all Agents (especially new ones) need to learn to read more than the compensation line.

Posted by Chip Jefferson (Gibbs Realty and Auction Company) almost 10 years ago

This is so true about unnecessary charges!I hate more regulations but when the new truth in lending regulation, they should required the HUD to be prepared 24 hours before the signing so there would be not last minute surprises.

Posted by Marcelo Da Silva (Homesmart) almost 10 years ago

Good post, Agents and loan officers should review the preliminary HUD 1 provided with documents.

Posted by Bill Ladewig, Experience Is Your Advantage (LoanOfficerSchool.com) almost 10 years ago

Hi Marie,

Thanks for reminding us about this.  EVERYTHING is negotiable and especially in today's tough market, why not ask for a discount?  I don't think they should ask $20 or more for FedEx when it costs an average consumer usually about $14.  I know that's only six bucks but that is over a 30% markup.Linda Alexander, real estate agent (916) 640-3131

$350 is a car payment.  It is every man/woman for him/her self.  You are your buyer's advocate and they work for the title company.  Sellers have an agent to represent them.

I meticulously scruntinize every invoice - so should you.  I am a 'lawyer wannabe' so I am my client's advocate!

Contact me for representation in Northern California, Sacramento or the SF Bay area. 

Posted by Linda Alexander Sacramento almost 10 years ago

Marie- Over time, I have noticed many mistakes on HUD statements which were always corrected prior to closing. It is very difficult to adjust figures when checks are cut and you are sitting at the closing table at the Registry of Deeds! The HUD is a VERY important document for your client. Great post.

Posted by Judy Jennings, Broker - The Lanterns at Warren Woods - Ashland MA (The Green Company) almost 10 years ago

The HUD statement is a document that needs to be reviewed prior to closing.  By law you are supposed to get it 24 hours prior to closing.

Posted by Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239, Michigan homes for sale ~ yesmyrealtor@gmail.com (Real Estate One) almost 10 years ago

Hi Marie -- I always go through it before it gets sent to my client to ensure accuracy and it's paid off many times.  Great advice.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) almost 10 years ago

Great advice - of course we should be going through the HUD 1 for our clients - I love the title company that I am always happy to use because they get the HUD 1 out early for clients to review.

Posted by Lise Howe, Assoc. Broker and Attorney Licensed in DC, MD, VA, (Keller Williams Capital Properties) almost 10 years ago

Marie, great advice for us all to remember and take heed to read the HUD-1.

Posted by Rebecca Gaujot, Realtor®, Lewisburg WV, the go to agent for all real estate (Vision Quest Realty) almost 10 years ago

Marie,

It seems that some closers cannot get the HUD-1 right... never fails, there will be mistakes..

THEN there are others that strive to get it right.  I love it when my clients use a certain closer because I know that she will be diligent and also will get a copy to me 24 hours ahead of time so that I can go over it.

Settlement Statements are TOO IMPORTANT for an agent to not know how to analyze.

Good coverage of an important topic that has not been dealt with much.

Posted by 1~Judi Barrett, BS Ed, Integrity Real Estate Services -IDABEL OK (Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745) almost 10 years ago

I always review the HUD with my clients before closing.  Making sure they understand what the charges are and that they match up to the original good faith estimate I provided to them at application.  Making sure we review this early enough allows us to correct the errors that do pop up so the closing can occur as scheduled.  It helps us make sure we all have happy customers when the closing is complete.

Posted by Jon Sigler, South Windsor Homes for Sale 860-306-8029 (Keller Williams - Greater Hartford) almost 10 years ago

Reviewing the HUD with clients is essential.  I review it with clients prior to closing so that there is time to make corrections. My client's closer always reviews the numbers. line by line, at the closing table.

Posted by Sharon Parisi, Dallas Homes (United Real Estate Dallas ) almost 10 years ago

Hi Marie. Fortunately I am able to review the HUD statement days before a closing and I review it line by line. Typically I notice a few errors. I see it as part of due diligence. ~ Lana

Posted by Lana Robbins Realtor ® Licensed Real Estate Broker, Florida and Washington Real Estate (Aloha Kai Real Estate) almost 10 years ago

The title companies I work with know that I will not close without a preview of the HUD1.  I have found errors on no less than 80% of the HUD1 statements that I have reviewed in my career.  This is sooooo important, thanks for the great explanation!

Posted by Jeani Codrey, If you're not learning, you're not living! (The Learning Jeani) almost 10 years ago

Thanks Marie,

Absolutely.  Check the Hud1 carefully and do not trust the anyone else to do it for you.

I saved a buyer over $1400.00 recently on the HUD1.  The title company and the seller (a bank) were not pleased with me at all.  Who cares?  The buyer cared - that's who!

Posted by Dan Quinn, Dan Quinn (The Eric Steart Group of Long & Foster Real Estate) almost 10 years ago

I review the HUD statements very carefully and frequently find errors and save my clients money. They really aren't difficult to read once you know how they're set up.

Posted by Monica Bourgeau, Business Coaching (New Phase Business Coaching) almost 10 years ago

Marie,

It is always a good idea to check the numbers.  We are all human and mistakes are made.

Ann Hayden

Posted by Ann Hayden, SelectAnn.com (Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri) almost 10 years ago

Well said.  I caution our buyers to save their lender's good faith estimate to compare at HUD review. Our side of the table sees the HUD in advance and has time to question items.  By the time they get to the closing they're familiar with it.  I also request a seperate HUD for each side since buyer and seller need not look into each other's pocket.  At times negotiations have become wicked and now the buyer sees what the seller is walking away with?  Don't need that tension at the table.

Posted by Jackie Davis, Citrus County Real Estate is ripe for the picking! (ERA American Realty) almost 10 years ago

Wouldn't it be nice if the preparer of the HUD was a little more responsible!! You would think their job depended on it!!  Too many mistakes should take them to the unemployment line.

Posted by Anonymous almost 10 years ago

Sorry I forgot to sign in before - Wouldn't it be nice if the preparer of the HUD was a little more responsible!! You would think their job depended on it!!  Too many mistakes should take them to the unemployment line.

Posted by Carla Wade almost 10 years ago

We all need to remember the definition of client , one who is in the care of another.  Making sure the HUD is correct is a major portion of our job.

Posted by Steve Moore (Steve Moore/David Massey Real Estate) almost 10 years ago

You are so right.  I had a closing last week and the seller did not review the HUD with them and when they did get to view it they were not happy campers.

Posted by Lacy Gay (Sterling Real Estate & Auction) almost 10 years ago

Many agents have not been taught that current RESPA provisions MANDATE consumers getting a copy of thr HUD-1 24hrs. prior to settlement !!!(to be in full compliance !) It is not optional.

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) almost 10 years ago

Great post, Marie!

The HUD statement is one of the most important documents that the buyers/sellers sign. As an agent, it is your responsibility to know that form, line by line, and know what fees are typical and which are not.

I cannot tell you the amount of corrections I have had made over my 11 years in this business.  I am amazed that there are agents that do not attend their closings.  I feel it is my most important duty to my client to be there at the closing table (or have someone there in my place if I cannot attend), to make sure that there are no problems with the HUD.  There are too many fees that lenders seem to sneak in at the last minute, and title companies are not bullet proof to errors, either.

 

Posted by Michelle Fradella-Barfuss, Author of "Top 10 Mistakes Agents Make When Market (Marketing Coach - ERA Brokers Consolidated) almost 10 years ago

And add in REO properties where the escrow company preparing the HUD-1 is out of area - now that can be a challenge! It seems they just wing it. Recently closed a cash transaction for an REO property and the HOA fees (and believe me there were delinquent fees and interest charges due) were completely ommitted from the HUD-1.  I had to argue there were HOA's to be accounted for (even though there were listed in the Prelim. Title Report)!  This could have been a $600+ overcharge to my Buyers.  Amazing.    

Posted by Darla Maddalone (Bend Oregon Homes Online-Principal Broker, SFR, CSP) almost 10 years ago

I always find it interesting when I do anaylyze a statement and question things, many agents and title clerks look at me like i am from Mars and most of the time I am right when I find something questionable, as all of you would be too!  it just shows how infrequently people question those fees, thanks for bringing up this critical point!

Posted by Jason Burkholder, Associate Broker, Realtor, e-Pro, CMS (Weichert, Realtors - Welcome Home) almost 10 years ago

Years ago I worked for a company that said just make sure our fees are right on the hud and approve it. Now I look over ever aspect and just had a closing where there were adjustments with the sellers taxes. We corrected it ahead of time and the closing went smoothly for my buyer.

Posted by Home Loan Search.Online (Home Loan Search Online) almost 10 years ago

Great advice, I ask for ours at least a day in advance and mostly get it (not always, though!)

A preliminary tool I like is the net sheet for sellers.  I provide it at the time of the listing appointment, showing them what things will be subtracted from the gross price, and what they will net at different prices in the suggested range.  Then I bring a revised net sheet during contract negotiations.  So the HUD-1 (after it's correct) is not a surprise to them.

Posted by Judith Reppert (United Country Countryside Realty) almost 10 years ago

Thank you for the reminder on such a critical aspect of the closing, Marie.  I believe that real estate agents, escrow officers and mortgage brokers make up a team that all need to put their heads together to make sure the transaction is represented accurately (and therefore 'fairly') for their clients.  The signing at the closing table shouldn't be a one-man show. 

The figures that make up the HUD come from so many sources that any one person, single-handedly, cannot guarantee accuracy 100% of the time-there's just too many variables that make each transaction unique. 

Closing agents get instructions from the contract, the lender, there may be builders or subcontractors involved who submit invoices (or maybe they forgot to), there are local assessments, county taxes, commissions/commission credits, seller-paid costs, etc., etc.  Sometimes there are addenda to the contract that don't make it to one party or another.  Omissions from the HUD, or mistakes, are not always 'mistakes'-sometimes they occur from a lack of communication or an oversight.

In my area, loan documents rarely ever come to us a day prior to the closing...without loan documents (or at least the instructions from the lender), a 'final' HUD cannot be prepared by the closing agents.

Posted by Amy O'Laughlin almost 10 years ago

Being a past banker HUD statements are so importnat. We always require the attorney to send us them at least 24 hours before close if not 2 days. What 350 fee were they trying to get the poor buyer to pay this time? Have a blessed week and thanks for this great reminder.

Posted by Lisa Ludlow Archer (Live Love Homes-Keller Williams, Charlotte, NC Ballantyne Area ) almost 10 years ago

 For Buyers, there are 3 important evolutions of the Estimated Closing Statement (AKA: the HUD):     (1). The Good Faith Estimate (GFE).  When a buyer completes a mortgage application he or she receives a GFE.     (2). The Initial HUD.  Once escrow is open the lender forwards the GFE to the escrow company and requests an Initial HUD.  The Initial HUD is more precise than the GFE because the lender knows what it's fees are but often can only "estimate" other fees (e.g., title fees, escrow fees, notary fees, recording fees) and pre-paid items (e.g, property taxes & hazard insurance).  The escrow officer provides more precise estimates of these fees.     (3). The Final HUD.  This is it.  The Final HUD is what the buyer will pay.  There is usually a pad of a few hundred dollars to account for any last minute per diem interest or other small variations.

     Conclusions: (A). As a buyer, be sure you are satisfied with the GFE upfront.  (B). Prior to scheduling the signing date, ask your lender if there are any large discrepancies between the GFE and the HUD--you can ask this question any time once escrow is open.  (C). If discrepancies exist, have them fully explained to you and speak up if you do not agree--the earlier the better.

     As a lender, I never give "teaser" GFE's to attract business because at the end I love showing the actual fees being less than estimated and not more.  But every lender has his/her own style so buyer-beware & compare the GFE/Initial HUD to the Final HUD you will be signing & feel goooooood. :)

Posted by Tyrone Baker, Mortgage, Home Loans almost 10 years ago

Since several of you have asked, the $350.00 I saved my client was for a "post closing fee".

Again, thank you all for your comments, they have been interesting.

Posted by Marie Story, Broker Associate, Pinecrest (Miami) Specialist (Coldwell Banker - Pinecrest (Miami)) almost 10 years ago

Marie:

Like so many have said - You are not doing your job, if you have not reviewed the HUD-1.  Your fidicary responsiblity clearly is not being met if you do not.

By the way - What is a post closing fee anyway?  Some funds set aside to meet a contingency that was not met?

Posted by Bob Force (REALTOR®), The FORCE in Maryland Real Estate (Weichert - McKenna & Vane) almost 10 years ago

You point out exactly why transparency in the mortgage business is coming to a head and why Washington is pressing the issue.

Thanks for the post.

Posted by Mark Warner (RealEspace) almost 10 years ago

Good advise.  By the time people get to the signing they are so fed up they would sometimes sign anything just to get it over with.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) almost 10 years ago

Great advice!  Nothing worse than getting to the COE and having the close delayed.   Thanks for the post...

Posted by Sherry Lee Cox (Platinum Properties) almost 10 years ago

Short sale HUDs are very important ones to keep an eye on. Typically when we send in our short sale HUDs it could be months later and we get a second HUD because we lost the last buyer. I had an issue come up because of the way the tax year ended between the first contract and the second contract, the taxes were then 1800 off from the banks approval amount. This made a big mess. Make sure your escrow officer isn't just changing a name and a purchase price when making a new HUD on the same property.

Posted by Jeff Mix almost 10 years ago

Agreed, however, as agents, we need to make sure to submit all documents to the title company so they can prepare an accurate settlement statement. Home warranties, gas line warranties, inspection fees etc. And the contract, of course!

Posted by Susanne Novak, ABR, FIS, GRI (RE/MAX 24/7) almost 10 years ago

Isn't this a basic part of our job? 

Posted by Kathy Batterton, TeamWork makes the Dream Work! (RE/MAX Infinity CDPE, E-PRO, GRI) almost 10 years ago

It's always good to have the HUD reviewed carefully.  Mistakes do happen, and they can be costly.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) almost 10 years ago

Good job Marie. Great agents save their clients lots of money and headaches.

Posted by Mark Velasco, Listing Agent-Whittier & Surrounding ciities (Sharpstone Realty, Inc) almost 10 years ago

I would not close a transaction without first carefully reviewing the HUD settlement statement. If it does happen that we do not get the HUD until we get to the closing table, I will not RUSH to look through and approve the statement, but will sit and carefully go through each item line by line to make sure that my Client is paying only for what they should be.

Posted by Heather Demerly almost 10 years ago

I would say many agents only look at the commission calculation and nothing else.

Posted by Richard Weeks, REALTOR®, Broker almost 10 years ago

If for no other reason, the HUD should be available 2 - 3 days before closing just so the parties involved aren't surprised with the amount of money they need to bring to close.  Also, since a lot of my clients have day jobs, they need time just to go get the $ when their banks are open. 

There have been several instances where mistakes are made and need to be corrected ahead of time, as well.

Posted by Ed Vogt, Grandville, MI Midwest Properties (Midwest Properties of Michigan) almost 10 years ago

It is very important to review the HUD. When I am the Buyer's agent, I try and always close at the same Settlement Company because I have learned that they are extremely thorough, and pretty good at getting me a copy of the HUD before the day of closing. I have experienced when going to other settlement companies, it is often not this way. Our job is to make sure we take care of our clients all the way through settlement, and beyond. They truly appreciate it. We do this as a living and review the forms often, where this may be our buyer or seller's first time.

Posted by Renee Thompson (Premier Sotheby's International Realty) almost 10 years ago

In Illinois we use attorneys to review the HUD and go over the costs.  Sometimes things slip thru as the attorney doesn't always know what the buyer agree too with the lender.  I've also been at a closing and spotted something on the HUD and the attorney told me to 'shut up' and mind my own buisness and stop practicing law.  Hmmm.  I still think we should speak up if we see a mistake.

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) almost 10 years ago

A "Post Closing Fee" is nothing more that a junk fee the title company was trying to collect.  I find more "junk fees" from the title/settlement companies than from the mortgage companies.

Posted by Marie Story, Broker Associate, Pinecrest (Miami) Specialist (Coldwell Banker - Pinecrest (Miami)) almost 10 years ago

My favorite is when they want to use THEIR FRIEND - The Attorney because he/she will take care of them.  In reading the HUD, we see how well their friend took care of themby charging double and triple the going rate. 

We don't say a word.  We just feel sorry that they didn't take our advice and shop rates.

Posted by Joy Carter & Jeff Booker Brother and Sister Team, Trust Your Family's Move To Our Expertise! (Keller Williams Parkland/Coral Springs Realty-GreatFloridaHomes Team) almost 10 years ago

Thanks for the great information - I need to become more proficient in HUD-ese.

Posted by Jay Anderson (Century 21 Cornerstone) almost 10 years ago

Yes it is extremely important to review the HUD-1. At one closing I found the pro-rated property taxes seem to be higher than what I found on the tax card. It turned out that the buyer's agent had given the closing atty the wrong parcel ID; I showed them the correct printout from the tax office & they had to reprint the HUD & deed and since the buyer paid cash had already signed the HUD & so had to be brought back to resign. The atty thanked me but the buyer's agent wasn't happy I found the error (saved the buyer & seller a couple hundred bucks).

Posted by George Wilson (Lincolnton, NC) almost 10 years ago

Participate