Reading the confusing HUD Statement
Introduction
Also known as a settlement statement, HUD-1 form contains vital information about the title expenses, real estate taxes etc. By understanding the basic sections in the statement, you can read the form.
Instructions
1. The format of The HUD-1 statement is like an outline. Label is given to each major section and numbers are given to each line. There are two separate summary sections on first page. The second page includes settlement charges .It has a two-column format listing each expense next to a column which gives an idea about the items paid for by the buyer and another column which tells you about the items paid for by the seller. On the last page there is a summary of the loan terms.
2. If you are a buyer, pay more attention to the “Gross Amount Due from Borrower” section. If you are the seller, read carefully the sections named: Gross Amount Due to Seller. The cash settlement sections tell the amount that each party must pay.
3. Check all calculations. Be sure that the figures mentioned in sections J and K are accurate. Make addition of the figures mentioned in your column to make sure that the total of settlement charges is correct.