Financing in Leesburg>Question Details

Prfstrkr, Home Buyer in Leesburg, VA

Question about HUD-1 statement in City of Leesburg, Loudoun County, VA

Asked by Prfstrkr, Leesburg, VA Tue Mar 25, 2008

Question about HUD-1 statement in City of Leesburg, Loudoun County, VA
Sale Price $365,000
Loan Amount $215,000

1) I was charged $40 for item “1102. Abstract or title search” (originally on GFE), but then another $150 for item “1103 Title Examination”. (NOT on GFE) Aren’t those the same things?

2) Besides the Government “1201. Recording Fee” of Deed $33 PLUS Mortgage $46 = $79 (originally on GFE), I was also charged another $40 for item “1112. Recording Service Fee” to the Title Company. (NOT on GFE) Is this normal?

3) Is there a standard rate for item “1108.Title Insurance”, or does it vary? I was charged $1649.20

4) What’s the formula for Item “1202. City/County Tax”? I was charged Deed $304.17 PLUS Mortgage $179.17 = $483.34

5) What’s the formula for Item “1203. State Tax/Stamps”? I was charged Deed $912.50 PLUS Mortgage $537.50 = $1450.

Thanks

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Answers

7
Thanks Khazeem again

Got some answers from Title Company

1) The Abstract and Title Exam are separate fees. The abstract is the actual purchase of the title work from the abstractor and the Exam is the review of that title work.

2) The Recording Fee and Recording Service Fee are also separate fees. The Recordings Fees on line 1201 is what the County charges to put the Deed and Deed of Trust on record. The recording service fee is what we have to pay our abstractor to take it to the courthouse and work with them to get it on record.

3) Item “1108.Title Insurance” is calculated by
$4.68 per $1000 for first $100,000 of Sales Price PLUS
$4.08 per $1000 after that PLUS
$100 simultaneous issue fee = $4.68x100 PLUS $4.08x265 PLUS $100 = $1649.20
1 vote Thank Flag Link Tue Mar 25, 2008
Hi Everyone,

This question was posted multiple times and received quite a lot of answers. I'm closing the other threads and the other answers to this question can be found at the links below.

http://www.trulia.com/voices/Financing/Question_about_HUD_st…

http://www.trulia.com/voices/Home_Buying/Question_about_HUD_…

http://www.trulia.com/voices/Home_Buying/Question_about_HUD_…

Best Wishes,

Emily Gibson
Customer Service Representative
0 votes Thank Flag Link Tue Mar 25, 2008
Good question. I put a link below that you may want to check out, but I have no good answer on this one. My clients never go through this because all of my homes are new . But, by law, you have a right to be fully explained of all chargers and fees in a document in layman's terms. And if they are blatantly redundant, you can dispute them and refuse to pay. I'll bet that if you catch them with their hand in the jar they will waive a fee or two.

What i've learned as a federal litigator is that civil contracts love to use confusing and ambiguous language and HOPE you accept the common meaning of the term. Or, in this case, they let a third party, like an agent, explain THEIR charges and fees. In such a case if the explanation is incorrect the Title Company is not at fault because THEY didn't mislead you.

Force their hand. Make them explain everything to you and don't accept any answer that doesn't make sense to you. You have a right to FULL DISCLOSURE! And upon a satisfactory explanation, if you feel good with the deal, go with it, and if not, call their bluff.


http://www.realestatefoundation.com/community/originalresear…

http://www.americanhomeguides.com/homebuying_tips_view.php?R…

http://homebuying.about.com/cs/titleescrow/a/hud1_settlement_3.htm

Khazeem Asadullah

email: info@serapisdebtservices.com
0 votes Thank Flag Link Tue Mar 25, 2008
Hi Khazeem,

Should I put my poker face on a try to bluff them or play ball their way @ the closing table since all the concerns are regarding Title Company, not Mortgage Company?

Thanks
0 votes Thank Flag Link Tue Mar 25, 2008
Your questions and concerns are valid in this case, and without going into great detail let me say that the practice of "nickel and diming" people to death at closing is not new and it is being investigated by the federal authorities (so they claim) at this very moment. Banks do this, investments companies do this, etc.

They don't expect you to walk away at this point over a couple of thousand dollars. But in these times, that extra thousand may well be the straw the broke the camels back. However, they are in a bind also due to the current market situation... they NEED to sell.

I really have no advice on this one because regardless what anyone says to you or how they try to explain it away, those fees are redundant and made up. You didn't see the news special on this a couple of weeks ago? There was a hour long special on this very topic.... it was totally scandalous!

Put your poker face on a try to bluff them or play ball their way. Thats all you can do. Sorry, but by you asking the question your God given common sense already told you that something is wrong here. All I've done here was verified your concerns. Again, sorry. And good luck.

Khazeem Asadullah

email: info@serapisdebtservices.com
0 votes Thank Flag Link Tue Mar 25, 2008
I haven't closed yet, just looking at the HUD-1

I know 4 and 5 are set by City, County and State, but that does not mean they do not make mistakes :)
0 votes Thank Flag Link Tue Mar 25, 2008
Items 1, 2 and 3 vary by settlement company and the particular tite search and title insurance company. They sound about right, but without seeing the actualy HUD-1 and your GFE, there's no way to tell for sure.

Items 4 and 5 are set in stone. Those are tax rates set by the city, county and state.

Your real estate agent didn't explain all these things to you? And either did the settlement agent?
Web Reference: http://www.LoudounStats.com
0 votes Thank Flag Link Tue Mar 25, 2008
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