HUD 1 Settlement Statement

HUD1 Settlement Statement

Anytime you buy or sell a piece of real estate, you receive, at or before closing, a summary of all fees associated with the purchase or sale. Confusion regarding the HUD1 is common, so let me simplify.

Closing costs are itemized for both buyer and  seller on a document called a HUD1 Settlement Statement. This form is filled out by the closing attorney or title company and will be shown to both buyer and seller at closing. The HUD1 shows all fees each pay to purchase, transfer and record the transfer of property.

As a buyer or a seller, always ask that a copy of the HUD1 be provided to you 24 hours before your scheduled closing. This should happen automatically, but often does not unless there is a specific request from the attorney or closing agent.

Receiving the HUD1 prior to closing allows time for the buyer to confirm all fees to be paid or funds needed, if any, to bring to closing. It allows the seller an opportunity to confirm the amount they will receive or, possibly, need to bring to closing.

When you receive the HUD1, examine it closely to find errors or omissions. Never assume it was prepared correctly. We regularly find mistakes on the HUD. If  you find errors, have them corrected. And, if there are items you don’t understand, ask questions until you do.

The HUD1 is broken down into easily understood sections. The top area is self-explanatory with sections for buyer, seller, lender, and property information. The sections below are broken into two columns – the left includes a summary of the buyer’s/borrower’s transaction, the right column is for the seller’s.

Read your column and you will find it broken into transactional groups including: gross amount due, commission to be paid, loan charges, insurance, taxes, attorney fees, recording fees, etc.

Any items associated with the purchase or sale, but paid either before or after closing, should also show up on the HUD. These items will be marked with the letters “POC,” meaning Paid Outside of Closing. They are included on the HUD1 because this form is intended to be a record of all costs associated with the property transfer.

As with any legal document, when looked at as a whole, it can seem overwhelming. When you sit down and read it in sections, however, it is actually quite easy to understand.

Again, if you find something you don’t understand, ask questions until you do. The closing attorney, title company or agent, are all there on your behalf and expect to answer questions for buyers and sellers everyday.

Please leave your questions or comments about the HUD1 below.

This post has 164 Comments | Would you like to leave a comment?


  1. Hi Erica:

    Just start writing. Spend about 15 minutes per day writing a short topic. Once you’ve done this everyday for a week or so, it becomes so easy! You start thinking in short story lengths and look forward to sitting down so you can type out your thoughts!

    Thanks for your complement and thanks for asking me! Good luck to you and enjoy!

  2. First off I would like to say great blog! I had a quick question which I’d like to
    ask if you do not mind. I was interested to find out how you center yourself and clear your mind before writing.

    I’ve had trouble clearing my thoughts in getting my thoughts out there.
    I do enjoy writing but it just seems like the
    first 10 to 15 minutes are generally lost just trying to
    figure out how to begin. Any recommendations or hints?
    Many thanks!

  3. Larry:
    Why wait? Contact them both! Agents are required to keep all the documents from their closings, but I don’t know for how many years. The title company or attorney who handled the closing is the one I would “assume” would have all of your documentation.

    Good luck to you and please let me know how it turns out! Thanks for asking.

  4. We are in the process of consolidating two loans which were initiated when we purchased our home in 2003. The lender has requested a copy of the HUD 1 which we noticed was not included in the documentation received at closing. How might we obtain a copy of the HUD1 as quickly as possible? The real estate agent and the title company are both local. Which would be the better option to inquire about a copy of the HUD1?

  5. The Title Company could be responsible, especially if you had title insurance.

    But mistakes, unfortunately, are made all the time. They sent you a copy that you “assumed” was correct, but you actually share responsibility for checking the numbers.

    Most often, when a mistake is found, the buyer and or seller simply send in the necessary funds to correct the issue. Did you have an attorney represent you at closing? Call a real estate attorney and ask to be sure as I am not an attorney and every state has slightly different real estate laws.

    Thanks for asking!

  6. Hello, we were the sellers and recently closed on our condo in FL. The title company preparied the HUD and sent to seller and buyer for review. The Title co instructed me to wire an exact amount of money for closing. I did. A few days later, the title company informed me that the RE commissions were incorrect on the closing docs. Seller commissions were correct, however, buyer RE commissions were incorrect by 1.5%. Who is responsible after closing and signed HUD statement? For the missed commissions?

  7. Hello there:
    Just a few thoughts: if seller is an individual, they are probably moving anyway. You, as buyer, know your address. If LLC or Corporation, addresses can be found through Secretary of State.

    I don’t actually think this is a big deal, but it is up to the attorney or title company who handled the closing to fill out the HUD completely. You can certainly ask them for a completed HUD or to provide you with that information so you can write it in on your copy.

    I think your agent is correct in saying that this is not a big deal, but thanks for asking!

  8. Hi Karen,

    Small detail, how important is it to have the address on the “Name and address of Borrower” and “Name and address of Seller” section when you are the buyer? I noticed that my name, borrower, and seller name was on there. However, the title company did not include our addresses. Will this little detail cause a big problem in the future? I was informed by my real estate agent that is not a big deal unless I am selling the property, where the IRS will need the info to collect tax.

  9. Often items are paid and not deducted on the HUD. For permanent recording, they can show on the HUD as POC – paid outside of closing.

    You might ask if they can do that for you.

  10. We agreed to pay 2k towards a repair allowance for the buyers. The day before closing we noticed that this payment was not coming out of our proceeds from the sale/was not on the HUD1. We were told if we wanted it listed on the HUD1 this would cause issues with the buyer’s lender and would delay the closing. We were given the option to 1. bring the check payable to the buyers and that it would not show up on HUD1 or 2. Delay closing

    Is it normal to pay and not have this payment noted on the HUD?

  11. Hi Lauren:
    Do you agree that you owe the $4000? Contact your attorney and real estate agent to ask if this is correct. I don’t know about the signing and distribution being legally binding, but you should pay that money if you owe it.

    Please let me know what you find out.

  12. I received my HUD and asked my realtor if the amount listed included my most recent mortgage payment or not. I was told that at closing they would have an exact amount written out, up to the day. I went to closing, signed all the documents, etc. I called the attorney later that day to see if the sale had been recorded. I was told yes, and that my check from selling the house was ready to be picked up.. It was a Friday and I asked if I could pick it up on Monday. I went in Monday, picked up my check and deposited it into my bank account. After 5:00p.m., I received a call from the closing attorney saying that they made a mistake on the paperwork and input red the wrong numbers. Said it was a difference of $4,000.00, and could I please send them the money back. Am I legally responsible to pay that after it has been recorded? This is so frustrating to me. Thank you

  13. Hi Myong:
    I’m not sure why you need it for this years taxes, however, you should have a copy in the packet of your 2000 taxes, right?

    If not, contact the closing attorney or title company who handled the closing when you purchased the home.

    Good luck. Let me know if and where you find it!

  14. HI Karen,

    I lost my HUD-1 statement when i purchased home back in 2000. I need it for tax report for my house sold in 2015. I contacted Escrow companies and banks and public records. But no one keeps record more than 10 years old. Do you know of any ways that I can get hold of a copy of it, through pay or free services?

  15. Hi Jeff:

    You made the correct first move by contacting your closing attorney. Your attorney and title insurance should clear up any mistakes. However, your responsibility is before you sign the documents so, hopefully, everyone will be willing to make this right for you.

    Please let me know what happens!

  16. I sold a house and purchased a new one back in September. I was about to file my taxes and realized the credits due seller (me) were incorrectly deducted from the final price (instead of added). In essence, the buyer received $800 instead of paying $800, meaning I’m out $1,600. Further, this complicates my taxes. In reality, I paid my taxes plus the buyers’ taxes. And it changes the gain/loss on the sale of my house. And then there’s the buyer who benefited by $1,600 and probably even took the deduction for the taxes I paid on their new house. I contacted my closing attorney who is looking into it. Not a good situation. Advice?

  17. You should have had an attorney handle the closing. The attorney should represent you in this and get answers for you. If not, get another attorney. Once signed, all documents should be recorded and monies disbursed within 24 hours. Longer only if over a weekend or holiday. Most times, we sign documents, attorney records and disburses funds all the same day.

    You might try an online source like if you don’t have anyone in your area to call. At least call and talk to a real estate attorney.

    Please let me know what happens.

  18. Hi, We recently signed on a HUD home. Last Thursday to be exact. Now it is Wednesday (evening) and we have heard no word from anyone. Basically we just signed away a bunch of money for a house we are not allowed into! How long does HUD have to complete closing on their end? No one has anything definite to say. It is a construction loan so this delay (after everyone was telling us we’d be able to be in the house last Fri or Mon by the latest) is holding off our contractor and also now going to cost us another month’s rent because we can’t turn in our 30 days notice until we know the work can get started and be done on time. Is there anything that can be done?

  19. Hi Justin:
    I certainly hope it is an easily-correctable error.
    Ask your closing attorney. VA is very strict with their requirements so, since it was stated as VA on the HUD, I would certainly expect whomever handled your closing to be anxious to correct it.

    Please let me know what you found out.

  20. I have my HUD-1 (signed) that states the loan was intended to be a VA loan. I paid VA lending fees, I have no PMI on my loan, but the VA isn’t tracking it as a VA loan. The VA rep said to ask for a VA lending fee refund. How is it possible to sign all paperwork for a VA loan, and it not be one? Is it not the case that the loan is a VA loan, but that the lender made an easily-correctable clerical error?

  21. Hi Kris:
    If you were owed it, you should be able to get it. One thing for sure, if you don’t ask, you won’t get it!
    Contact your closing attorney to handle it for you. Please let me know what happens.

  22. We were notified by the lender that in the audit they missed us signing two things. They asked us to return it. In looking at the final numbers, I noticed that they did not give us the lender credit of $7500. Is it too late to get that money?? It was messed up a few times so I think I was just overwhelmed and didnt notice.

  23. Thanks Karen for responding to my query, I am just looking to see if i can resolve this issue by reporting to the local agency like.. TREC?

  24. Raghu:
    After closing when you’ve signed the incorrect HUD, things get harder. You could ask the builder to make it right and pay back what he owes you. Again, the person who handled the closing is the one to work it out.

    I do not recommend legal action as it will probably cost you more than what you would collect.

  25. Thanks Karen !!

    Can i take any action on my Builder where my contract states its 3% and in HUD it is 5%?

  26. Hi Raghu:
    Contact the person who handled the closing for you, either your attorney or the title company. Explain your concern and let them either show you how the numbers figure out or, if there is a mistake, let them handle getting it corrected.

    Please let me know how this turns out.

  27. Hi Karen,

    Thanks you for helping out the community with your valuable answers to all the questions on real estate.

    I have a question, i have recently closed on my home here in texas and when i signed a contract with the builder the commission protection contract between bulder and my realtor showed that the realtor is going to get 3% commission and i had a negotiation with the realtor who agreed to pay be 2.5 % in rebate. But, when i closed ont he home i see that the HUD-1 had a 5% omission payment to my realtor . I belive there was a understanding between my realtor and builder and they cheated me?

    Do you suggest anything i can do here?

  28. Hi Angel:
    Personal property can be negotiated separately since it’s not part of the purchase of the home. If you were purchasing or selling personal property to reduce or add to the purchase price, that would be on the HUD but, because this does not affect the sale of the property, it won’t be on the HUD.

  29. After closing is it OK if the buyer agees to purchase some of the seller’s personal property that they left in the property? Would it be deemed as a POC to have been listed on the HUD1?

  30. Thanks, Jacob, for letting me know what happened. What a fabulous outcome to a mess of a closing…

  31. Thanks for the response. It was an “error” in the closing documents drafted by the attorney performing the closing. We were able to receive our full commission, thank God! The seller returned the money, and is taking legal action against the title company. Just a mess overall…

  32. This sounds like stealing to me. Unless they had permission to change the HUD. But you signed the incorrect HUD? And you had no attorney or anyone representing you at the closing? If you did, that person would be the first one to contact.

    Or you might try contacting either an attorney you use or someone like LegalZoom, RocketLawyer, or one of the other agencies that claims to offer free legal advice.

    Please let me know what happens.

  33. I had a property close recently; this week. First, I noticed this gem of a title company forgot to include the seller’s contributions to my buyer. They adjusted that. Then, when I went to pick up my check, my heart sank. I asked why we were missing over $3,000.00 from our commission. The clerk informed me that the other agent chose to cut his commission because he knew the seller personally. I informed her that the seller wasn’t MY friend, nor does he pay my bills. When I looked at the pre-HUD the amounts were correct. When we received our final HUD I checked for the errors that I pointed out, but failed to notice the amounts were changed. I have no clue what to do…

  34. Contact whomever handled your closing – the closing attorney or title company. They should have no problem sending you the copy of a signed contract.

  35. Hi Karen,

    I sold my previous home late last year and most of the paperwork for that sale was done via an e-sign method of which I don’t actually remember. How would I obtain a hard copy of the Settlement Statement? Thanks in advance for your time.


  36. Hi Terrance:
    This should not be a problem since the new HUD should not have your signature. Also, you have a copy of the signed HUD that was used at the closing showing these fees were already covered.

    Let the attorney who handled your closing take care of this for you.

    Thanks for asking.

  37. Karen,

    We sold our house back in June and received a credit as part of that sale. We learned today that the pest inspection and remediation were not paid out of escrow, as intended. I looked back at our HUD-1 and see the fees included. The realtor sent me a copy of a HUD-1 generated 2 days after we signed, showing that they removed the fees from escrow and adjusted the totals. Is this legal? They’re now asking us to pay based on their HUD-1 that we never even saw!

  38. Since the buyer was willing to pay this fee in the prior agreement, that is the document they will probably be held to. Typically in a short sale package, there is a document or paragraph stating that the parties agree to amend any mistakes made in future paperwork.

    Check with your closing attorney. It’s hard to believe that, with so many eyes on one document, there can still be so many mistakes but it happens all the time. This is why I stress getting the HUD early and making sure everything is correct before signing. Plenty of changes are made after closing and we have walked out on closings before where errors were found that we would not agree to correct.

    Please let me know what happens, but your buyer agreed to this fee and should be morally ok with paying it.

  39. Karen,

    I just closed on a short sale deal and I represented the Buyer. The Listing agent contacts me almost a week later and tells me that there was an error and the short sale fee was not on the HUD statement and sent me an invoice for the Buyer to pay. Although the Buyer agreed to pay this amount in writing, it did not reflect on the HUD and the HUD was approved by the bank/lienholder. Does the buyer have to pay this short sale fee now that the deal is closed and the amount did not reflect on the approved HUD? Please advise. Thanks!

  40. Hi Nicole:

    The best thing to do is contact the attorney who represented you for the closing. The HUD is a legal binding document so you do have that on your side. Typically, closing attorneys or title companies have errors and omissions policies to cover their mistakes.

    Please let us know how this plays out and what your attorney says.

  41. We have a situation. Similar to another comment made… we closed on our home on Sept 11 it is now oct. 15 and our title company is just now calling us saying they made a mistake on our final paperwork that they missed and our realtor missed that instead of 6% commission they put 3% in forms and now are coming after us for another 3% of the sale to cover mistake.. we relied with why are we having to pay your mistakes because that money is gone now and we don’t have it and doesn’t that final statement we signed over ride previous signed agreement on comission. . They replied with the first doc. Stating we agreed to 6 percent is still binding and want their money. My husband and I are floored… do we have a leg to stand on here legally?

  42. Hi Jennifer:
    The time to do something was really before you signed.

    Now I suggest contacting the attorney who represented you for this closing. Please let me know what you find out.

  43. We sold our second home and the closing was this morning. We received a copy of the HUD yesterday and all looked right. At the attorney’s office this morning they said that a correction had been made to reflect the buyer’s escrow payment. That was all they mentioned. When all was done and signed, the attorney came back into the room with a check for our proceeds. At that point, he handed us a new copy of the HUD that reflected a $400 fee for an Easement Agreement. I stated that we knew nothing about that, he said we did. All parties were in the conference room. I was surprised, but we concluded the closing and left. I’m really annoyed now by the last minute fee that had not be disclosed (and we wouldn’t have agreed to that amount). Is there anything that can now be done about it?

  44. Hi Gerald:
    The HUD is the statement of everything paid and owed by both buyer and seller (as you know). And the document is, therefore, to be given to both buyer and seller – their information. So, actually, you have no right to their information or the HUD.

    I suggest you ask your client for a copy since this attorney is not accommodating your request.

    Thanks for asking!

  45. As a Realtor, have been to hundreds of closings. Recently, my buyer’s attorney refused to give me a copy of the HUD at closing. He said it was none of my business then proceeded to say why – he was concerned that I may sell it to the IRS. I was flabbergasted. Never been refused a HUD and no agent I know has. My brokerage needs the HUD as the commission information is on there and it is reviewed by our parent company when they perform customary audits. It is my business. Do I have a right to this?

  46. Brent:
    If you didn’t have legal representation at the closing that can represent you here, contact someone like Legal Aid for some free advice to figure out where to go from here.

    Didn’t you have a closing attorney or a title company who handled this for you to begin with? You don’t seem to be getting much help with this.

  47. More information to the Realty Co demanding the additional 1% commission from my home sale closing:

    Realty Co is beginning to become threatening. They sent me a “revised” HUD-1 yesterday, August 11th that they want me to sign and send back. But looking online, according to RESPA, it says it is NOT a Tolerance Violation AS LONG AS the revised HUD-1 form was provided to all parties within 30 days for any errors. My closing was July 7th, I received the form August 11th (36 days after the closing) Wouldn’t listing the incorrect commission amount paid to realtors (6% vs. 7%) on the original HUD-1 form, and then sending me the “revised” HUD-1 form 36 days later be a tolerance violation? I’m not sure what a tolerance violation is.

  48. Since you used their attorney for closing, are you saying you had no representation in this transaction? (Warning – never a good idea. Works fine unless there are problems…)

    Theoretically, the HUD is the final and accurate accounting of all monies dispersed in the sale of a property. However, there are ethical issues and exceptions that can arise. That being said, if you feel your funds were misrepresented, you have a right to stand by the signed agreement.

    And any good attorney (even if representing the other party) should still direct you as to the accurate response of the law. You may want, however, to ask another closing attorney or call someone like Legal Aid for free legal advice.

    Please let me know what happens.

  49. Hi Karen!
    A few weeks ago, we sold a condo in South Carolina and received a Settlement Statement (their version of the HUD statement). Today, we received a call from the property management company, who prepared the Statement, and they said an insurance bill was not paid, but was assumed to be paid so now we owe them for this. Are we responsible for their mistake? The attorney we used is a close friend of the person who contacted us regarding this bill, so asking him won’t help.
    Thank you!

  50. Wow!

    Thanks, Brent, for the update! Anxious to hear how this is resolved!

  51. Update from my problem regarding the HUD-1 error and the commission amount of 6% vs. 7%:
    I received this email from the realty co:

    “Attached is the updated HUD statement, from Home Title, with the 7% commission rate.

    Brent – please review, sign and scan back to me. I will then get the closer’s signature (from XXXX Title) and send to you for your records. After we complete this part, will you be able mail a check to (Real Estate Co) in the amount of $1750.00 ?

    Thank you”

    My reply: “On the advice of counsel, the error should have been caught prior to the close. I cannot be held liable for any errors or ommissions that were out of my control.
    As it is now, the person or persons who made the error should be held responsible.”

    So in short, I am diggin in!

  52. Hi Misti:

    If you agreed to pay for staying an extra 30 days and didn’t pay, I’d say you should pay without question.

    Even if you have a contract or record proving that you agreed it would be taken out on the HUD, if it wasn’t, I think they stand a better chance in court. You both should have had an opportunity to check that the HUD was correct before signing, so that error is on you as well as them for missing it.

    Just to be sure, check with your closing attorney or Title Company if you want to get out of it. And let me know how it turns out!

  53. Hi Karen,

    We sold a house three months ago that we leased back for 30 days. The leaseback fees were to be paid out at the time of funding per the agreement. We moved out and they did their walk though and all was well. Now two months later we get a call that the funds were never taken out of the HUD settlement and the buyers agent is asking us to pay. Is this a normal thing? We were totally caught off guard because we assumed this was taken care of. Do we have to pay this?

  54. I would contact the attorney or title company that closed this property for you. I don’t think they have any recourse at this point as they signed off on the HUD. Their first step, naturally, is to ask you to pay.

    Please let us know what happens with your case. The error should have been found and corrected prior to closing. Good luck!

  55. Error in commission amount paid to realtors was discovered nearly 1 month AFTER the closing. (6% vs 7%) I was the seller of the home. The Realty company is now saying I owe them an additional $1,750. The amount shown on the HUD-1 is the same amount I received. If I pay the $1,750, when I file my taxes, the amount of money received will then be less than the amount reflected on the HUD-1 form. Isn’t that the fault of the closing agency and realty company and not me? How can I be held responsible for an error on their part? Can the HUD-1 be amended or changed for this type of error?

  56. Hi Lisa:

    Fortunately, your social security numbers are not on the HUD. Other than that, much of this information is public. I can go online and see what you borrowed, when, where and how much interest you’re paying.

    Recourse? Not really any, as far as I know. Information sharing (and loss) is not uncommon. Just trust that whomever received your information is treating it with the same respect that you’re treating the HUD you received in error.

    Nothing wrong with trying to contact the other person. May give you comfort knowing where it went if they have it. Could also be that the woman at the title company simply thinks she sent it but didn’t.

    I certainly hope this all turns out well for you!

  57. Hello,

    Our title company sent someone else’s HUD-1 to us via email. When we asked for our HUD-1 she insisted that she sent it. This leads us to believe that someone else received ours. What recourse do we have? Would you recommended trying to contact this other person and see if they received our information. We are concerned that our personal information may be used.

  58. Karen,

    Good news! They paid one bill (utility) it was over $2k so grateful that one cleared. Still waiting on the property taxes. Communication with this company is frustrating as they are based out of India and there are language and working hour discrepancies. Thank you so much for your help. I felt much better after reading your post and knowing I had a government entity that I could report any erroneous actions.

    I’ve bought and sold several properties in the past and everything was taken care of on the closing date. I had to wait 10 days for one bill to be paid and still waiting for the other. The closing was done via email and I had to wire my money to them before I received any paperwork. It was really scary and I’m not sure I would recommend this company to anyone. Definitely not for the faint of heart.

    Thanks again for you blog and sharing your extensive knowledge with the masses.

    You are our internet angel :)


  59. Hi Cindy:
    Contact the title company who handled this transaction. Hopefully, they’ll correct the mistake.

    Do you have title insurance or an attorney protecting you in this transaction? If so, you can also contact them.

    If you get no response or satisfaction, then file complaint with attorney general. I looked Hubzu up online and they don’t have a very good rating. Please let us know if you get this resolved.

    Best to you!

  60. Hi Karen,

    I just purchased a property from a bidding website (hubzu) and wired my money to the title company on 7/6/15. I finally got some of my closing paperwork on the following Friday but now I’m learning they did not pay two bills on the HUD that were supposed to be paid (Utility bill & property taxes) by the seller. How do I make them pay the bills they promised to pay at closing?

  61. Title company or closing attorney is responsible.

    Thanks for asking!

  62. We closed as the buyer on a home a week ago. The closing attorney/ title company is calling now to say they made a $500 error on the settlement. The earnest monies were not credited/debited properly and the seller is due an additional $500 because of their error.
    The attorney questioned whether we had another $500 as if it is negotiable?
    Who is responsible for the additional monies?

  63. Thank you so much I will contact the Title Company!

  64. Hi Kay:
    This should have been handled and corrected before you signed at closing. Almost 4 years later, this would be tough. Contact the attorney or title company who handled this closing for you and see what options you have.

    Please let me know how this turns out.

  65. Someone has to clear up the error. There is even a possibility that the mortgage company is wrong.

    Contact whoever handled the closing for you – closing attorney or title company. And did you get title insurance?

    Someone may have made a mistake and they may need to pay for it rather than you.

    Let us know how this turns out!

  66. I closed 4/30 under a conventional loan with only 5% down and have PMI. I received a call 5/1 from the mortgage company that the HUD-1 was wrong and I need to bring $1200 more to the table to have my 5% and the sellers closing contribution will be reduced and they will be refunded the $1200.

    I’ve signed everything and everything has been filed. Do I have to pay this money?

  67. Hi I purchased a townhouse October 2011. I have been bothered because I was sent a HUD statement before closing and it was correct that I was NOT to pay any points (as per ad on bank’s website also) when I went to the closing a fee of $525 had been added for points or “credit charges” which were not a part of the original loan. Do I have any recourse now to get back the $525? Thank you so much, Kay

  68. Hi Karen

    Thank you for your prompt response.

    We have an attorney. However, she seems to be more concerned about us getting mortgage commitment before the bank’s deadline….
    My concern is that, again, we need to have correct numbers on HUD then get approval letters from banks based on the correct payoff numbers.

    We all know we don’t have to sign at the closing table if something’s wrong and we don’t agree. The problem of short sales is that, the seller doesn’t have money to put after numbers are corrected, so still they are going to ask us to chip in if money is short. Banks don’t take less once they made an approval letter, so if HUD is made with wrong numbers, basically this deal is destined to fail.

    Now, I don’t know why there is an extra step that both sellers and buyers have to sign to agree with HUD. We voluntarily requested HUD from the seller’s attorney, but if we hadn’t, we would’ve been totally doomed.

    So, the bottom line, should our attorney request the seller’s attorney to correct numbers on HUD? Until we are satisfied with the correct HUD, don’t we have to make further steps?

    Thank you again.

  69. Hi Kaz:
    Who is representing you in the closing? Your attorney should be advising you and making sure all of your numbers are correct.

    No one can simply add numbers to your side of the HUD without you knowing, understanding, and approving them. There will not be extra charges added at the last minute without your knowledge and approval. If the numbers are wrong, simply refuse to sign until all the corrections are made. You can always walk away and not close on the purchase.

    This is why you get a HUD BEFORE closing – so you have time to check the numbers and understand what you owe before closing.

    Best of luck and let me know what happens.

  70. Hi Karen

    We are currently in a process of purchasing a short sale. Things has been moving quite slowly for the past 5 months, and now we are finding a problem. The HUD-1 that the seller’s attorney prepared has lower amounts of payoffs to two banks which the seller owes to. We are aware that, besides that, other items (interests, taxes, insurances) increases everyday.
    We are afraid that, at the closing table, the sales price will be short to meet all necessary costs for this sale and we will be asked to chip in more than 20K. In my opinion, this is b/s done by their attorney. Isn’t he legally responsible for all errors he made? How can we fix this before moving further? We’ve received approval letters from both banks, but they made the decisions based on this false HUD-1. Please help!

    Thank you!

  71. Thank you for the follow-up, Theresa. I so hate that you have to go through this.

    Best of luck!

  72. Thanks for your time and the input Karen.
    The lawyer that we consulted advised us it would be a simple small claims court case and that it would benefit us to not have representation due to cost. She advised us to list the Title Company and the seller. At the first court hearing the judge required us to refile listing the sellers agent. The Title Company sites blame on the seller’s Real Estate Agent as she provided the information for the HUD. This agent today shared a document with us that states the buyers and sellers are responsible for the HUD form, not them and they intend to argue that. We did provide the offer to purchase stating the carpet allowance as well as the HUD that did not have it present to the judge. The judge stated at the first hearing, something to the effect of it being disappointing that someone would use an error like this to not fulfill the contract- which meant to us, he owes us and the judge agrees, and made us more confident the ruling would be in our favor.
    All parties involved accept responsibility for missing the carpet allowance(including us), except for the seller whose obligation it is to pay us, and he claims no responsibility to the miss nor to pay and honor the offer to purchase. We have a court date set and have already invested several hundred dollars in serving papers to multiple counties and court filing costs, and so we will likely pursue in court.
    At this point, it has become as much of a moral pursuit as financial for us. We feel it is a simple error, and a person of good standing morals would agree and remedy the situation. They left the home in poor condition, dirty and garbage everywhere, a broken appliance and also have “thrown” everyone involved “under the bus” to escape from their responsibility. We had been willing to negotiate originally, but in light of the events, are no longer interested in that.
    I will update after court and let you know how it turns out.
    Thanks again.


  73. Hi Teresa:

    Purchase and sale agreement should hold up as any changes agreed to later should have been in writing. The seller should make this right. I can’t imagine that a real estate agent can provide documentation showing themselves, or the title company, harmless. Will this attorney defend you in court? Have you shown the document the real estate agent gave to you to the judge? If the judge asked for the name of your agent and title company, it seems they may have liability.

    This really comes down to how much you want to fight. Obviously, the seller hopes you will go away. What will the attorney charge to defend you? Is it worth it? Being right doesn’t always, unfortunately, mean you will win. If fighting costs you more than $2000, is it worth it?

    Sorry this happened to you. I’m sure you’ll be more diligent in reading the closing documents before signing next time. Please let me know what happens.

  74. We had an error on our HUD-1 form at the closing of a home that we purchased, it was omitted entirely from the form and we noticed about 15 minutes after we signed the papers and walked in the home that it was left off. We were advised by a lawyer that we are still entitled to the $2000 carpet allowance that was agreed upon in the offer to purchase. The seller of the property now refuses to pay for various reasons. We have filed in small claims court and were required by the judge to list the seller’s real-estate agent as well as the title company. We are of the understanding that the offer to purchase was not void by signing the closing documents and that we are indeed still entitled to the $2000. The real-estate agent provided documentation to us today that places responsibility upon buyers and sellers and voids them or the title company of liability. Is that accurate? We realize all parties are of equal responsibility for missing this, but feel the offer to purchase is a contract and should be upheld. Any insight would be appreciated.

  75. Hi Moh:

    Contact the closing attorney or title company that handled the closing of the property when you bought it.

    Thanks for asking!

  76. Hi Karen,

    I bought a house in 2003, lived in it until 2008 and rented until 2014 and sold it in September 2014. Now I have to report my taxes for 2014. I just realized that I don’t have HUD-1 [perhaps lost it since moved a few times since]. What is my best chance to get a copy of that? Where do I need to contact. your prompt response is appreciated as I am kind of panicking getting close to April 15.

  77. Hi Maria:
    Contact your closing attorney or title company before signing. We actually had a problem with this once when the lender saw that the borrower was using the address of the property he was purchasing from us. Closing had been delayed many times so we had let him move into the property and pay us rent until closing. The lender determined that, because he was already living in the property, he needed to live in it for 90 days before he could qualify for a loan. Good grief.

    Please let me know what you find out and thanks for asking.

  78. Hi Karen,

    I am selling a property in Florida and just received my HUD 1 48 hours prior to closing from the Title Company. I live in Massachusetts and am doing everything by mail. I noticed that in Section D the title company listed the borrower’s address as my current property address that is being sold. Also on the Warranty Deed document (which must be signed and notorized) they list the buyer’s post office address as my property address. Is it okay to sign these documents? Why is the buyer not providing their current address? I really don’t feel comfortable signing. Thanks,

  79. Hi, Jeff.

    The contract should still stand. And, why fight it? You agreed to provide the warranty, so simply write a check and be done.

    Thanks for asking.

  80. I previously closed on my home. As part of the initial contract I would provide a several hundred dollar home warranty. The closing attorney completed the contract and the house was closed on. A month later (a couple days ago) I was contacted that I still owed money for the home warranty. Who is responsible for this? The buyer signed off on the incorrect closing documents but it was in our initial contract.

  81. Hi Chris:
    No, they’re not public record and are not recorded.

    Thanks for asking.

  82. Question, would you happen to know if Settlement Statements are public record? Can I obtain a copy of a Settlement Statement for a sale of a house that my name is not connected?

  83. Hi Teresa:
    You should contact the attorney or title company that handled this closing and get the matter resolved. To begin with, are they correct that the taxes were not shown on the HUD?

    Please let me know how this turns out.

  84. Hi Karen. On my HUD-1 that we signed at closing, we were due a refund. Still haven’t received the refund so I contacted the lender. They told me that title company “forgot” to include 2nd half of the year taxes, so we would not be getting a refund and sent me a new HUD-1 but it was not marked amended or even signed by me. Should I ask the lender still pay the refund?

  85. Hi JLA:
    As stated above, the HUD is a summary of all fees associated with the purchase or sale of a property. I’m just guessing here, but it sounds like they want a HUD for the same reason anyone does in a purchase transaction, so that all numbers are written out and clearly defined for both parties pre-closing.

    For an accurate answer to the question, ask your lender. Since they have agreed to your offer, you obviously have someone there you’re communicating with.

    Good luck to you with your transaction and I’m thrilled for you that they accepted a lower payoff!

  86. Karen,
    I have a question. I requested a short payoff from a mortgage company that only owns 20% of my mortgage loan, and they accepted the offer. Why are they asking me for a copy of a HUD 1 settlement statement? I’m paying them off with a cashiers check. Please advise.

    Thanks so much in advance for any advice!

  87. Hi Sheryl:
    This certainly sounds bogus to me. Personally, I would probably ignore it.

    However, I don’t give legal advice! Google the HUD office in your town (simply type – HUD office your city and state – in the search bar) and ask them about this letter.

    Please let us know what you find out, and thanks for asking.

  88. We refinanced our home in 2007, in 2009 we received a check from HUD for insurance refund. Today, 6 years later, we recieve a letter requesting us to pay those funds back, stating we were not entitled to them. The letter is not signed just says management and our address was handwritten on envelope. The letter is typed on HUD letterhead and a copy of the endorced check. Any advise?

  89. Hi Kate:
    Contact your closing attorney or title company to get clarification.

    Once you sign the HUD, it is technically considered a closed contract which is why you always want to check the details before closing, but it’s always worth asking when/if there is a mistake on the form, as well as when there is simply confusion that the attorney may be able to explain away.

    Please let us know how this turns out and thanks for asking.

  90. Hi Karen,

    We sold our condo in February 2014. We have now come to fill out our 2014 tax return and I think there’s a mistake on our HUD. We sold the property for $583,500. The commission paid to the real estate agent was $29,175. The buyer paid the same amount ($29,175) as earnest money.

    On our HUD the commission fees are listed in line 703 and are included in the amount deducted from us in line 502. But there is also $29,175 listed in line 501. It feels like we have paid the commission and also somehow paid the buyers deposit.

    It has been such a long time now since we sold. Are we out of luck? Am I reading the form wrong?



  91. Hi Craig:
    You will need the closing attorney or title company who handled the closing to look into this. Once everything is signed and closing has taken place, it is hard to get anything amended – you already signed that the HUD was accurate.

    Always get a copy of your HUD BEFORE closing and don’t sign anything where you believe an error has been made, until/unless it is corrected.

    Please let us know what you find out.

  92. I know my broker on a simple refi collected $7,312.50 (2-3/8 points on $325,000) for both the origination and yield-spread for a total of $14,625. The HUD-1 doesn’t show an originator, instead it says “compensation” $7,312.50 and my broker shows me a check from escrow for that amount stating that is the yield spread and that the lender took the $7,312.50 plus their $900 fee which I know is not true because my broker did all the origination. How can I get a corrected HUD-1 to reflect both these payments as well as the recipients of both checks with the word x”COMPENSATION”. Only 1 check for $7,312.50 was shown to me and didn’t say “origination” or “yield spread”. I know my broker is trying to hide the fact that he made so much off of me because we are close friends. Escrow stated that check was for “origination”, so where is the “yield spread” check? The lender said that they don’t cut checks. Help me get transparency on the money spent on this loan… Thank you, Craig

  93. Ok. I did receive HUD1 on Friday before closing on Monday. I spoke with my agent about the discrepancy. i was out of state due to a family emergency and was not physically at closing. Agent advised I could discuss this with closing attorney. I did discuss with closing attorney where we initialed those items to equally share those items. He did not agree. My agent. then called me back and said I had 45 Minutes to decide. Being out of stat I didn’t have any idea who to consult with so we moved forward. I do accept the outcome but felt I lost $800 paying both buyer and sellers portions. thanks for your advice. I should have had representation and will remember that the next time..

  94. Renee:
    The time to disagree is before closing. You needed your own attorney to handle your interests at the closing. A real estate agent does not do this for you as they are not legal counsel.

    Once you’ve signed the documents and the closing has taken place, you’re done and it’s too late to change your mind.

    This is why you always want the HUD at least 24 hours in advance to challenge and delay closing if the HUD is not correct.

    Sorry. Hope you’re still happy with the way things turned out and, if you were willing to pay $5000 to close and didn’t pay more than that, you should still be pleased because you got what you ultimately wanted.

    Thanks for asking!

  95. I sold my home and agreed to pay $5000 to buyer’s closing cost. However in our contract we agreed to share equally the cost of attorney and title fee. Also I agreed to pay termite bond and buyer agreed to pay wood infestation report. we initialed all items. When I received HUD 1 the figures had me paying 100% of attorney/title fees and I had to pay wood infestation report. Attorney at closing said sinceI agreed to pay $5000 in closing costs those items are considered closing costs and regardless of our agreement to share equally those costs they would be paid by me under the $5000. Would this be a correct statement and appropriate that I pay 100% of those costs when the contract stated otherwise? I felt pressured by my agent to accept this and move forward so we closed. do i have any recourse at this point?

  96. Matt:
    Contact your closing attorney, or the title company that handled your closing, to ask what the laws are in your state. Also, go ahead and contact the lender to see how you proceed to have the PMI removed.

    Many people forget about, or are unaware of, PMI and continue to pay it for the life of the loan. Kudos to you for even recognizing that it is something you can get rid of.

    Please let us know what you find out.

  97. Hi Larry:
    It’s never too late to request that the buyer pay more, however, they’re certainly under no obligation to agree.

    You can contact the buyer’s agent, or have your agent contact the buyer’s agent, with your request to renegotiate. Then you decide – if they decline, will you cancel the sale?

    Please let us know what happens!

  98. Hi Karen,
    I received HUD1 last Friday and noticed I need to pay $2500 sewer surcharge fee. In Seattle WA, the sewer surcharge is a 15-year tax for new construction, total of $5000 in addition to the regular sewer fee. I lived in the new house for 7 years and now I am selling. I felt it is fare that the buyer need to pay for the remaining of the surcharge. What option do I have before I sign the HUD1? Is that too late to negotiate the fee? Should I contact buyer or buyer’s agent to have escrow company to change the terms?

  99. Hi Karen—

    I am trying to get out of my PMI as my home has luckily increased in value substantially. I was told we were in an FHA loan and had to wait the 60 months prior to elimination of the PMI even though we were over the 78% LTV threshold and when I looked at our HUD-1, they had checked “conventional uninsured” loan in Box B. Who should I talk to? Do I have a case to get rid of my PMI??

  100. That is so bizarre that buyer and seller each receive a HUD that’s only 50 percent complete! No way you could know if it’s correct.

    AND “PLEASE don’t overthink this form. If the numbers are correct, which they are, just sign it.” has to be just about the worst advice I’ve ever heard. It is certainly not legal advice. I would still make sure everything is correct and that the Title Company can explain it all to you before signing. A real estate agent is NOT legal counsel and WILL NOT stand up with you in a court of law. If this document is incorrect, it will not change the agent’s commission, but it could be a real problem for you.

    Absolutely make sure it is correct and that you understand it!

    Thanks, so much, for the follow-up.

  101. Hi Karen,

    Thank you for your quick response. I finally did get an answer and it seems that in Kansas it is NOT required to have the buyer’s information on the HUD statement for the seller and the seller’s information is not on the HUD statement for the buyer… that’s why we don’t see anything on the buyer’s column. As for the $0.00 in line 603 “Cash to Seller”, the reason it is $0.00 is because they placed the net proceeds for each of the sellers (three of us) on lines 1305 through 1307 to account for how much each of us should get from the Gross Amount (or pool of money as my realtor explained) from line 420, so when you add up all the “charges” on page 2, including the 1/3 share net proceeds in the Additional Settlement Charges 1300 section, and subtract the 500s, it all totals that pool of money. So when you subtract the reductions, line 520 from the Gross amount, line 420, the total is $0.00 on line 603 because the net proceeds to the three sellers is accounted for on page 2, lines 1305 to 1307.

    The initial answer I received this morning from the realtor was, “Are your funds being paid to you, correct? PLEASE don’t overthink this form. If the numbers are correct, which they are, just sign it.” which I promptly replied that from my reading last night, if I had any questions, it was my legal right to have my questions answered before I sign anything. That is when she asked me to call her so she could explain the HUD form and how the numbers were placed on the form…..really condescending and poor communicating.

    Anyways, I think it is correct and will continue with the closing. Thanks for your thoughts.


  102. Hi Becky:
    On the HUD, all 3 owners should be listed as sellers. The closing documents would be mailed, faxed, or emailed to each of the sellers for signatures. We do ours by email all the time now and sign with eSignatures. If your lender allows that, it is a very easy way to handle closings with out of state (and country) owners. Your closing attorney and/or title company will know how to do this – it is not uncommon. If needed, a seller can also give Power of Attorney to someone local to handle signing the documents for them.

    If you’re not satisfied with the way your Title Company is handling the procedure, use someone else. You are not bound to them in any way. You must have a company you are comfortable with and who is working for you with your best interest in mind. They may not be answering your questions because they may not know. No answer is a red flag. I say, they’ve had enough time and made enough mistakes (including nothing in the buyer’s column) to change companies. Better to delay the closing than to let mistakes be made.

    I hope this helps. Please let us know how this turns out, and thanks for asking.

  103. Karen,

    If one has three owners of a property, how does one write a HUD statement? I, as one of the owners of a property, received the HUD today, August 27th, with a closing date of August 29, 2014 and all three owners live in three different states and the buyer is military living in a foreign country.

    So we get this HUD statement which only shows the seller’s amounts (nothing in the buyer’s column) and the Title company has our net proceeds shown on Seller’s column on lines 1305 to 1307 and the total settlement charge to the sellers including the amount of our net proceeds on line 1400. Then on lines 420 “Gross Amount Due to Seller” they have what is due to us from the sale price followed by line 502, the subtraction of the Settlement Charges from line 1400. On line 520, the “total reduction amount due to seller” is the entire amount we agreed to sell the propery to the buyer. This is followed by 601 “Gross amount due to seller” which is the amount that was on line 420 followed by line 602, less reductions in amount due to seller line 520 which comes out to a total of $0.00 to the seller. Is this written correctly? I thought the net proceeds to the sellers should be written in the buyer’s column but it is written in the seller’s column under Additional Settlement Charges. You mentioned that the title company should answer any questions, but I have e-mailed these people three times with NO response….are we being swindled?

  104. Hi Kari:
    Contact the lender you make your payments to and request it.

    Let me know how it works out!

  105. Hi Karen,
    We are in the process of getting a refi and are being asked to provide the Hud1 Settlement from the current mortgage agreement. However, the original mortgage was with Nationwide. It then was bought by Wells Fargo, and now it is with Nationstar. How do I go about getting a copy?
    Thank you,

  106. Hi Kathleen:
    I have not heard of a lender requiring the buyer to sign that far in advance, 72 hours, but lenders are in control and can ask for anything they want.

    Please let me know how this works out for you, and thanks for asking!

  107. Karen,
    Hoave you heard of a requirement for a buyer to have to sign the HUD 72 hours in advance? This is holding up a short sale closing that is a day and a half away in Ohio.
    Thanks in advance for any feedback.

  108. Hi Andrew:

    The questions you ask should be directed to your lender and/or closing attorney since neither you nor I are sure where this discrepancy stems from.

    This is why buyers and sellers should always get a copy of the HUD well before closing – to find any errors or questionable items and have them cleared up before signing. It may well be that this is an error or, even if it is correct, the lender may take off the additional amount or turn it to your favor just to keep you as a satisfied customer. At the very least, it is worth a conversation. We have had the HUD changed more times than I can count. Errors are VERY common. In fact, I’ve gotten to where I expect errors on the first HUD.

    Please let us know here how it turns out for you, and thanks for asking!

  109. Hi Karen, I just had a quick question regarding my HUD-1 for my refinance. Is it typical for the payoff amount (for the old loan) to be higher than the principal amount of the new loan? I looked at my old refinance and the payoff amount matched the new loan amount exactly. In my current HUD they differ by $300 (not in my favor). Originally I told my new prospective mortgage lender that I would be using a third party title insurance company that was $300 cheaper. They eventually said they would give me a $300 lender credit to match that rate. I find it odd that the payoff rate is slightly more than $300 greater than the new loan amount. I feel like, although the $300 credit is listed on the HUD, they are charging it back to me anyway, but perhaps this is #1 not the case and #2 not uncommon. Any advice you would have would be welcomed. Thanks,

  110. Dawn:
    Thank you soooo much for the follow-up. I’m thrilled to hear that you ended up with satisfactory results.

    Getting a letter from a legal “authority” can be frightening and the easiest thing to do seems to be to write a check to make them go away. You took the tougher option of getting legal counsel to defend your rights. You will be an encouragement to others in similar situations. There are many, as you can see, just by the ones who took the time to find this post and leave comments here. IMAGINE how often this happens!?!?!

    Thank you, again, for writing. Questions are awesome – finding out the ultimate response is icing on the cake.


  111. Hi Karen,
    My name is Dawn McGee, I left a comment on Jan. 22, 2014 regarding the refunds given to me post closing by the title company. Following my refusal to return the money they had refunded me, a lawyer from the title company sent me a threatening letter informing me of their intentions of taking me to court to recover the $3,800 in errors made by their agents plus their attorney and court fees. They also sent me a copy of the closing papers with highlights of the aggreement to pay all outstanding leins, taxes and other debts related to the property. After closely going over the verbiage several times, it occurred to me that at the time of closing the debts were paid in full and the HUD 1 was correct. I satisfied my responsibilities with a check at the closing table. So I contacted a Real Estate Attorney who formerly worked for a title company and he agreed. My debt on the property was satisfied at closing and I was not responsible for agent errors that were made after the fact, post closing. The title company had many opportunities to review the HUD 1 before refunding me any money, not once but 3 times. My lawyer wrote a response letter the title company’s attorney stating that the responsibility lied with the agents employed by the title company and warned if they contacted me again we would file a harassment suit and make a counter claim for all the distress they put me through. Last week my lawyer contacted me to tell me the title company had responded and they would no longer pursue the recovery. So, all in all, we were refunded $3,800 and my attorney charged $500. Because of the agent errors we broke even on the house. I would encourage anyone who is asked to repay any amount back to the closing company, post closing that was CLEARLY AGENT ERROR to dispute it, unless of course, full disclosure was misrepresented by the seller. I enjoyed reading your initial response and wanted to make sure I let you know final result.

  112. Hi Ben:

    I’m not an attorney so that’s where you need to be asking. However, I believe you’re out of luck. This is why you should get the HUD 24 hours ahead of time – to fix errors. No one can know, for sure, what they will pay or receive at closing until they see they HUD.

    It is never to late to check it, however. We have walked out of closings before when we did not see the HUD ahead of time and it was “wrong” when we viewed it at the closing. We have also gotten on the phone with lenders during closing to have numbers changed – the attorney “corrects” the paperwork, and then we sign.

    Once you sign, you have agreed to the documents as presented.

    I’m sorry you weren’t happy with the outcome, but your numbers are not off by much. Make extra payments on your loan to pay off early and save what you would otherwise pay in the additional interest rate. Just making one extra mortgage payment each year will save you thousands of dollars in interest over time.

    And be thrilled with what you learned from this experience. You will be far wiser next time!

    Thank you for contributing to this post.

  113. Hi Karen,

    I chose to take a higher interest rate inorder to recieve a $3000 credit towards closing cost. The seller also contributed $2000. In other word is closing costs were $5000, I would not have to contribute to closing costs. I was quoted estimated closing cost of $5,700. I asked my lender if I needed to worry about closing costs coming under $5000 and they said “no”. Of course when I go to closing, closing costs were $4,500. I only got $2500 credited.

    My issues:
    1. I was not warned that closing costs would come under $5000. If I had known, I would have taken a smaller interest rate and smaller credit towards closing.
    2. I recieved my Hud-1 2 hours before closing from lender. I didn’t have time to follow up with any questions.
    3. I paid $375 out of pocket for an inspection. Can I get this money back from lender or is it too late since it was not in the HUD-1

    Do I have a case against the lender or am I out of luck?

  114. To Nancy-Feb 15th,2014 post,
    It comes down to this decision and you are completely in control here. You must make a decision if you want to share the HUD1 with him. In some states he may still have a right to info concerning marital assets such as this house since you are NOT divorced and you no property settlement. I am sure you can provide him with certain loan docs that shows he is not financially involved. Not sure if his lender will accept it.
    Your choice and you are in control..

  115. Hi John:
    I’m glad to know that you have your attorney and title company looking into this. Obviously, this should have all been handled at closing and disclosed on the HUD. The fact that the buyers and their attorney did not notice is a huge oversight on their part.

    That being said, the security deposits are not yours and never were. Those belong to the tenants and transfer with them and their rental agreements to the new owners. As far as rents, normally the owner receives all rents so you would have received them until the day of closing and the new owner would have received them from that day forward unless their were other agreements made in your contract.

    Please let us know here what happens and thank you for asking.

  116. Karen,
    Thanks in advance for your advise and comments. I sold a rental property in Colorado to a small investment company (3 people) about 5-6 months ago.
    We all signed the HUD, etc. at closing and went on our merry way.

    The buyer’s attorney is now (as of 1 week ago) demanding that I pay them nearly $3k in security deposits and rents that I received from the renters prior to the sale of the property.

    None of this was in the closing contracts/paperwork that we all signed and initialled. It was, however, listed in the initial contract to purchase.

    I can’t imagine that I am responsible for paying this. I have my attorney and the title company looking into this.

    Who do you believe is responsible for paying this since it is so far outside of the closing? In my mind, the contract is done, finished and I am not going to pay for the oversights and mistakes of the buyer and the title company.

    Thanks again,

  117. We are still legally married. There is not a property settlement. He could not afford to buy me out of this house…so I refinanced him off the mortgage, he was paid out for his joint assets…it was the amount he agreed upon, he’s already cashed the check…he gave me a signed quit claims deed. I closed on the refinance in the last 24 hours. He’s now found a house and was told by his mortgage broker to ask for my HUD-1 statement showing he is indeed off the loan, so that they can proceed with financing him for his new mortgage.

  118. Actually he has no right to your new Hud info. When he was “quitclaimed” he was relieved of any responsibility and rights to the property unless your property settlement with your divorce says otherwise.

    The info on the HUD for your refi is sensitive info that is your business and not his. He may be looking to see if you took cash out that he may or not be entitled to depending on your property settlement agreement. However, it seems that if he was “quitclaimed” off the deed, you must have made some agreement releasing him from any proceeds or rights to the property and that should be in your property settlement. I hope that the property settlement has been signed since you have NOT been granted your divorce yet?

  119. Hi Nancy:
    Ask your divorce attorney about this. And, you can read for yourself all the information that is shown on the HUD to see if there is anything you don’t want him to see.

    When he signed the quit claim, he should have gotten paperwork showing that he is off the deed. Is that the HUD he is asking about? The closing attorney should provide that to anyone involved in the purchase or sale of the property. He can contact the attorney or title company that handled the closing and get a copy for himself of anything that he signed.

    Please let us know what happens and thanks for asking!

  120. My soon to be ex is asking for my HUD-1 on the refinance of what use to be our home. He is off the mortgage and signed a quit claims deed. He says he needs my HUD-1 to show he is off the mortgage so he can buy a house. Does a HUD-1 have any sensitive information that I shouldn’t be sharing? Also, should I be sharing this document with him?

  121. Hi Dan:
    Who sent the HUD? Were you given a closing date? Who is handling the closing?

    I am not the one to ask. Contact the closing attorney or the title company, whoever is handling all the legal paperwork to make sure you know if and when this is happening.

    Good luck and let me know what happens!

  122. I am a buyer of a place in florida and have been waiting for my shortsale to go through for a while .I recently was sent an HUD1 to sign, does that mean the deal is going through or is there extra steps to the process?

  123. Dawn:
    This is just crazy. I agree with you that the title company should refund what you paid them to do this correctly as you certainly didn’t get what you paid for!

    However, I have no idea the legal ramifications of any of this madness. The best thing for you to do is to have your closing attorney handle it or, if that person is not giving you satisfaction, have another attorney represent you. You paid for legal counsel to take care of these things and someone dropped the ball – over… and over! None of the errors were yours. And you still have no guarantee that paying this amount is ultimately going to fix the problem!

    Good luck to you and please let me know how it turns out.

  124. Hi Justin. There are many questions you need to answer here.

    What are your state laws? Here in North Carolina, a married partner cannot sell real estate without the signature of their spouse, even if that spouse is not on the deed of the property. What does your state law say?

    You write that it was “agreed” that you would split all proceeds from the property. Do you have that agreement in writing?

    The HUD is not recorded. The closing attorney and seller’s real estate agent should each have copies of the HUD1. The best thing to do is to have your attorney handle this for you. If you had legal right or an agreement in writing, the closing attorney should absolutely have kept you informed throughout the sale.

    Please let me know how this works out for you.

  125. I am seller. HUD Settlement was signed and funds distributed at closing with title company.
    2 months later the title company contacted me stating I over paid on the closing costs and refunds a check with “overpayment refund” on the check. One year later I received a statement from the Property Tax Assessor stating I had overpaid my taxes and a refund would be given pending a letter from the closing company confirming that it was indeed over paid, The closing company reviewed and sent the letter to Tax Assessor and funds were refunded to me. NOW, 15 months later I get a call from theTitle Company saying that they had errored again and I would need to pay the overpayment and taxes back because they made mistakes in refunds, not once, but 3 times. I told them I paid a fee to them to perform services correctly and execute the closing. They missed this 3 times, then 15 months later demand the monies back, and they want it now. This seems to be breach of contract, as they didn’t perform the service I paid them to do correctly, I feel I should be refunded the title companies fee that was paid for this service. This amount exceeds the amount they want me to pay, which I think is a reasonable demand. The monies they made all the mistakes on should be paid back from the amount I get back for failure to perform the service they were paid to do correctly.
    What is your opinion on this matter?

  126. My ex sold a property that was in her name only. In our divorce it was agreed that we would split all proceeds from the property equally. The deal closed in December. I have been asking for a copy of the hud 1 so I can prepare my portion of the taxes, verify my half, etc. She will not provide me a copy of the settlement statement and has instructed the agent not to provide me with any information. The title company would not communicate either without permission from my ex. Is there another way for me to get a copy or the data on the statement? Is the hud public record?

  127. Hi Karen,

    Exactly, $1000 towards the repairs off the price of the house. Why would I write a check later,
    It is on the contract but it is not my fault that the title people, the buyer, the agents, mine and hers and the lender did not pick it up.

  128. Eileen:

    That’s a great argument in your favor – you weren’t originally supposed to give them cash, just a credit??? Entirely different scenario. Be sure to make that argument.

    Please let us know how this turns out. Thanks for communicating with us here. As you can see, you are not the only one with a HUD issue…

  129. I am going to give it a try and see if the title company will pick up their legal mistake.

    I really don’t have the money now and that was the whole purpose of giving the buyer the credit.

    My offer expired 12/13/2013 the day after closing.

    The listing expired on 12/16/2013, I was not contacted until after Christmas.

    We were away for the Holidays so I just recently got the message from the listing agent.

    I have nothing to lose by putting it back in their court and see how they respond.

    Thanks for the help.

  130. Hi Eileen:

    Has the property already closed? If so, the deal is done. There should be title insurance, errors and omissions insurance, something to cover the mistake.

    However, this is something you agreed to pay, but you didn’t. It would be nice if you honored your commitment by sending the check as promised. I would mail it to the closing attorney, however, rather than sending it directly to the buyer, so there is a record that this was paid.

    The decision is yours. If it’s closed, it’s closed. All mistakes must be corrected prior to closing and show on the HUD. Someone, not you, definitely dropped the ball on this one.

    Thanks for asking me.

  131. Hi Karen:
    We sold our home as is contract but we also gave the buyer a $1000 credit towards the cracked tile and missing fireplace mantle. This was on the contract.

    The closing was held, buyer initialed the paperwork so did we, sent it back in the mail to the closing company.

    I get an email from my agent (seller’s ) agent, saying to write a check out to $1000 to the buyer because the closing company didn’t take it out at closing.

    Do I have to honor that?

    Isn’t there errors and omissions insurance that the attorney should honor. The buyer, the title company and agent all did not catch this.

  132. If you haven’t closed, they can certainly change their terms as they see fit. You may need to agree or forfeit the loan.

    And, after closing, there could be wording in the loan docs that gives the lender the right to change this.

    Check with your attorney to know for sure. Please let me know here what you find out.

    Thanks, Diane, for asking.

  133. Hi Karen! I stumbled across your page while trying to find an answer to my question. My question is, I signed the HUD-1 Settlement document at which time I was not required to escrow my real estate taxes nor my homeowners insurance. Now, my lender has sent me new documents and has included escrow for both of these items thereby reducing the cash out to borrower and is requesting that I re-sign the Hud-1. Can they do this? I’m in the midst of a divorce and I think something fishy is going

  134. Again, I’m not an attorney but here goes…

    The HUD1 is a legal and binding document. Once everyone has read over and signed, the deal is done. Case closed. The builder may have a case with the title company, but not with you.

    Please let us know here how this all turns out, and thanks for asking.

  135. Hi Karen. My wife and I went to contract on a new home this last march. It was completed in July 2013. I installe the heating and cooling system per the contract in the home. Part way through this process my lender informed me I would get sweat equity as part of the FHA loan. When all was done we closed at a split closing. I examined the HUD and saw all the credits and signed. The builder did at a separate closing. Apparently the lender made a mistake and charged the builder for the sweat equity. Per his title company. This was pointed out to him and he signed. Approx one week later he realized there was a mistake and demanded payment from me to cover the difference. Along with the lender and title co I might add. I hired an attorney who said we are finished with the transaction and the builder signed it. So who’s right. Does the attorney just want to bill me to fight. Is it truly finished since it was signed by everyone. Thanks

  136. Judy:

    I truly hate this for you.

    It certainly sounds like you have a case as the HUD is a legal document and you were misrepresented.

    If you wish to go forward with this, you may want to start by contacting your state attorney general to file a complaint, report your attorney’s actions to the Bar in your state, and report this to the Better Business Bureau. Or, simply let your attorney know you are planning to do all this and she may suddenly decide to take care of everything for you.

    Good luck to you and please let us know how this turns out.

  137. Karen, I am a former real estate agent, and when I bought my house in Georgia, I was living in California, only arriving the day before closing, I was told by the real estate agent the property taxes were $1,286.60. This was also on the HUD statement. I owned the home the last 88 days the year 2011. In Feb, I received a bill from the tax commission saying I owed $283 more dollars. I immediately called the tax office, and they told me to contact the closing attorney. So I did, and I informed her that it was her job to keep this sort of thing from happening.
    She wanted me to contact the previous owner for his share of the tax amount. However, I told her I felt that was her job. She eventually called back and asked me to send a check for a certain amount, which would be my share of the extra amount, and she would take care of it. I sent the check. Now more than a year later, in Dec 2013, I have received another bill for the 2011 taxes. The taxes were never paid. The amount is more, because of the fees, and interest that were accrued. I am very upset, and wonder what steps would be appropriate to take against the closing attorney.

    Of course, this time I will pay the taxes myself, to make sure it is taken care of. But I feel her behavior was dishonest, unethical, and careless. There was an appeal on the taxes by the previous owner, however, it was never granted, and on the tax records, it showed a temporary bill, which was 85 percent. The tax office said the HUD statement should have included the amount at a 100 percent, and not 85 percent.

  138. Thank you, Karen! I certainly will.

  139. Hi Jacqui.

    Sorry that happened to you. This is why I stress over and over the need to see the HUD1 at least 24 hours in advance and never sign unless it’s all correct to the best of your knowledge. Of course I recognize that the attorney changed after closing, possibly without discussing it with you or your husband.

    Obviously, I’m not an attorney so you should contact yours to find out what can happen. I believe this will only be a problem if the buyer protests. So long as it does not hurt the buyer or their agent in any way, it may go through without incident. If they protest, it is a problem as the change was made after legal closing. My guess is there could be a fine involved but should not change the sale of the house. The deed is changed to the new owners and, if they’ve moved in, I’m sure they don’t want to move back out.

    Please let me know what happens!

  140. Hi,

    I closed on the sale of my house yesterday and had to give POA to my husband to sign the closing documents for me as I was out of the country. After he signed and left the office the attorney noticed a discrepancy regarding the realtors fees and changed the document. The mistake was something we had already queried with the realtor and been assured was correct. Is this legal and does it affect the status of the closing? I’m worried that I still own the house and the new people have already moved in.

  141. Hi Richard:
    We actually prefer escrow because it seems so much easier to pay a little each month rather than writing a large check at the end of the year!

    That being said, you should contact the closing attorney or title company who was in charge of this closing to let them know this increased payment was not what you agreed to when the documents were signed. Perhaps they can get this arrangement changed back to what you expected. It seems your monthly payment, even including escrow, wouldn’t change that much if you dropped over 5 interest points! That is a huge refinance reduction. Congratulations to you on that!

    Contact the lender directly and ask if escrow is a requirement on your type of loan.

    It sounds like someone dropped the ball in disclosing this to you. Is it legal? The HUD signed by all parties at the closing table should be the final and binding document. Does the HUD state what your monthly payment will be? And they’re changing that? I would definitely take this up with whomever handled your closing and, if you don’t get a satisfactory answer, a second opinion as well.

    Please, let me know how this turns out.

    Thank you for asking.

  142. Hi Karen.

    My wife and I closed a couple Saturdays ago and I saw the HUD-1. After the loan funded, I received a telephone call and an email from the settlement company on behalf of the lender which stated I would now be responsible for an escrow payment (for an additional $300 per month). This was never a possibility during any of our negotiations either before or after the closing. The HUD-1 and Truth In Lending Statement figures have changed. Is it legal for a lender to do this? Escrows are optional in some cases, based on the circumstances and lender’s requirements. We always have paid our homeowners insurance and property taxes directly without any problem before, and we were paying 8.99% until recently refinancing to 3.625%.

  143. Absolutely require a HUD1 before you sign closing documents. You MUST know the numbers. More times than not, there are mistakes on the HUD and many times, ones you don’t want to be held responsible for.

    You should receive the HUD 24 hours before closing. If you haven’t, that’s reason enough to delay. It is not your responsibility to provide it, it is theirs.You must know what you’re receiving and being charged for before you sign closing documents.

  144. Hello Karen. I am in the process of selling a home while out of town. The title agent sent me all the documents to sign, with the exception of the HUD-1. I am afraid to sign the documents without seeing the exact numbers. The agent says that she cannot send me a HUD until I have sent her the other forms. What are your thoughts?

  145. Talk it over with your attorney. Did you have a real estate agent? He/she would hold some of the responsibility for that omission, I believe.

    However, you will be responsible to pay going forward as you own the property. One of those “buyer beware” issues? A strong conversation with your attorney is in order, for sure.

    Please share with us the feedback you receive. This is so unfortunate.

  146. So the previous amounts they should pay, but what about the future? I was NEVER informed about either “dues”. Do I have any recourse? This was a HUD home if that matters.

  147. Hi Olive:

    I’m so sorry this happened to you. As a learning experience, be sure you never sign at a closing again without seeing your HUD. We often find mistakes in the settlement charges. However, these fees may not have shown on the HUD anyway.

    You are not responsible for this. We one time were hit with a very large unpaid utility bill after closing and the attorney and title insurance company fought it out to determine which one of them would pay it.

    Contact your attorney. If he does not take care of it, contact your title insurance company directly. That should easily take care of it. If for some reason it does not, contact another attorney.

    Please let me know how this works out. Thank you for asking.

  148. I was not given a HUd1 before the closing, the loan officer called me and told me the amount to bring to the closing. The realtor told me I had to drive to a town 35 miles away for the closing, his wife works for the closing company. I wasn’t given a copy of the HUD1 in the closing package. About a week after living in the new home, I received a foreclosure notice due to unpaid HOA and Recreation Association fees – fees that NO ONE ever told me about. Is the title company at fault? And what recourse do I have?

  149. Hi Jessy:

    Contact whomever handled the closing for you – closing attorney or title company.

    Thanks for asking!

  150. I have a question, what happens if I loose my HUD One form? Is there any way to get another copy of it somewhere?

  151. Wow!

    I have no legal training so I’m afraid you’re going to have to ask your attorney about this one. It certainly appears to indicate that you’re entitled to a POC incentive, but perhaps you don’t qualify. Seems like that should have been determined before closing, but banks often get to make their own rules.

    Please let us know here how this turns out.

    Best of luck to you!

  152. I recently sold a house in WA. In section 1300 Additional Settlement Charges there is statement indicating an POC incentive to be paid by bank (wording of statement dictated by bank). When I contacted the bank to ascertain payment date I was told the HUD statement was in error because I did not qualify for the incentive and therefore will not receive it. So my question is, since the bank reviewed the HUD, actually dictated the verbiage are they then liable for payment? Thanks

  153. No, Melissa, I’ve never heard of that and never had to do it.

    Please, keep us posted.

  154. I am currently in the process of selling my home and the buyers title company is asking for a copy of the HUD 1 form from when I purchased the home. Is this necessary or required ?

  155. Yup, you owe the fees.

    This amount should have been accounted for somewhere in your loan approval process as a real cost. Unfortunately, this may be a “buyer beware” scenario.

    Sorry this happened to you. Yes, the initial mortgage insurance is often taken up front but, if you don’t have it, they’ll hopefully work out a payment structure.

    Please keep us posted as you go through the process.

  156. Thanks, Karen. So it is feasible that the lender could demand that we pay this in full, regardless of whose mistake it was. Have you had any experience with what happens if the borrower cannot pay to cover their mistakes (as in, we would have a difficult time covering this amount immediately). Thanks again for your input!

  157. Hi Kate:

    One reason you get the HUD1 prior to closing is to make corrections. We regularly find mistakes on the HUD.

    No, it is not a legally binding contract, it is an accounting of all costs and incomes to and from both seller and buyer at the time of the closing. When mistakes are made, they are corrected, sometimes before and sometimes after closing. The HUD accounting is there for legal, including tax, purposes. The only protection against mistakes I know of are the ones that would be covered by your title insurance. You might check to see if this is covered by that policy.

    Thanks for asking!

  158. Hi Karen–glad to stumble across your page–great information! Have you ever heard of an instance in which the MIP (for an FHA loan) was left of the HUD-1? My husband and I closed nearly two weeks ago, and now have been contacted by the title company letting us know that the bank left off the upfront MIP and now we need to pay (to the title company directly). Is this weird? Should we be seeking legal counsel? I just wondered if you’d ever heard of this before and if the HUD-1 is not, in fact, legally binding like we thought it was. As a side note–the loan officer from the bank was actually in the room when we closed!

    Thanks, Karen!

  159. This is a very good article. Most people do not know how to read the HUD1. It took many closings to understand this extremely important federal document and thanks for giving clarity to this document that is used in every real estate transaction.

  160. Usually, the buyer’s attorney does the HUD1 since they have access to the buyer’s loan information.
    However, this is negotiable and either attorney can create the HUD1. Both buyer and seller will make sure their numbers on it are correct.

    Thanks for your question!

  161. I’m doing a short sale I’m the seller is my atty required to do the HUD1 statement or the buyers atty?

  162. Patti:

    The HUD1 is the legal settlement document showing distributions to and from all parties at the time the property is transferred. You should not be responsible for anything that was not included on the HUD1. This is why all involved parties are to receive a copy of the HUD1 24 hours before closing. The HUD1 is to be reviewed and changed until it is agreed to and signed, which finalizes the transaction.

    You may wish to hold up your end of the agreement even if the title company made an error but, unless other documents were signed to the contrary, you should be done with your transaction.

    Your title company will be able to tell you more. Sometimes, there are both moral and legal issues to be resolved. Hopefully, you and the buyer are both satisfied with the transaction as it took place.

    By the way, congratulations on selling your property!

  163. I am the seller and live in New Jersey. If the title company failed to include an appliance credit on the HUD-1 form and we already went to settlement am I responsible for paying the appliance credit to the buyer?

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