why does the seller need to sign the HUD one statement? what is being attested by the seller?

Asked by jnk3888, Brooklyn, NY Tue May 21, 2013

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10
Teverage, Home Buyer, Sunnyvale, CA
Thu Dec 15, 2016
I am selling my house in Louisiana and have asked the title company to send me a HUD so that I can see the breakdown of closing costs that I am paying for. Title company says it is against the law for them to show me the HUD with the buyers information on it. The Seller Settlement Statement they have sent me has all fees as one lump sum. Doesn't title company have a responsibility to show me the breakdown even though I agreed to pay up to $5,000.00 for closing costs?
0 votes
Jonathan Ken…, Agent, Beaverton, OR
Tue Jan 26, 2016
By signing the HUD-1 you as a seller also attesting that there are no other side business involved and what is getting sold is actually what it was for sale at certain expense to you, so you didn't include the sale of your coffee shop or your boat at no value and not disclosed into the deal. Also you are matching your total fees paid to brokers to what was agreed and stated on the listing contract so nothing more collected by realtors outside the transaction not being disclosed. Last by signing this becomes a proof that you saw what was paid to all your current lien holders, pending invoices and prorates on the the date of closing and fully agreeing on final proceeds or cash to close so escrow can perform all disbursements and close transaction.
0 votes
Steven Ornel…, Agent, Fremont, CA
Mon May 27, 2013
Hi jnk3888,

Per http://en.wikipedia.org/wiki/HUD-1_Settlement_Statement

"The HUD-1 Settlement Statement is a standard form in use in the United States of America which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. HUD refers to the Department of Housing and Urban Development.

The borrower has the right to inspect the HUD-1 one day prior to day of settlement. The form is filled out by the settlement agent who will conduct the settlement.
Since 2010, the HUD-1 settlement statement also contains what is referred to as a Good Faith Estimate or GFE. This additional set of figures specifies estimated settlement figures provided by the lender upon application of the loan.

Borrowers may compare their Good Faith Estimate to the HUD-1 Settlement Statement and ask their lender or broker about any changes."

-Steve
0 votes
Richard Owens, Home Seller, Copperas Cove, TX
Tue May 21, 2013
I would do everything you can to avoid a HUD, using a VA if possible. Don't buy a home you cannot afford!
0 votes
Your missing the point!
The HUD-1 must be used in any transaction (even cash) where a federally regulated mortgage (deed of trust) is involved, the Real Estate Settlement Procedures Act (RESPA) is a consumer protection act that is federally mandated.
Flag Wed May 4, 2016
Robert Lei, Agent, Cupertino, CA
Tue May 21, 2013
The seller needs to sign the HUD to attest that he or she has checked the numbers on the HUD for accuracy base on the expected closing date. Here in Silicon Valley, the escrow company is pretty good in the sense that if the closing date changes, the escrow company will quickly adjust accordingly.
0 votes
Stu Carson, Agent, San Jose, CA
Tue May 21, 2013
Page 2 of the HUD is divided into those costs that are “paid from borrower’s funds at settlement” and those costs that are “paid from seller’s funds at settlement”. If buyer, seller and title agent agree that the statement is true and accurate, all parties sign and date the sheet toward the bottom of page two.

Stu
408-209-0849
Stu@StuCarson.com
0 votes
Terri Vellios, Agent, Campbell, CA
Tue May 21, 2013
You are confirming receipt and understanding that the fees are true and correct. It is a government form and it is used for Tax purposes. It is how the escrow holder will be disbursing funds.

What is your concern about signing it?
Web Reference:  http://www.TerriVellios.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Tue May 21, 2013
That these are the true numbers, this is the sales price and this is what your receiving as the seller. It shows what your gross and net are for tax purposes. if you dont sign it you simply dont close.
0 votes
Laura Coffey, Agent, Santa Clarita, CA
Tue May 21, 2013
Escrow companies want the seller to sign a HUD for accuracy. It's all a bunch of BS if you ask me. They will never adjust it to be exact and if you switch closing days they won't bother changing it. You are just suppose to "trust" them so choose escrow wisely.
0 votes
Guy Gimenez, Agent, Austin, TX
Tue May 21, 2013
If you're just signing the Settlement Statement, you're not attesting to anything, you're merely confirming you've seen it. If you're signing the HUD Settlement Statement Addendum, you're confirming the accuracy of the Statement.
0 votes
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