Escrow Thursday: HUD Settlement Statement

HUD Settlement Statement

The HUD-1 Settlement Statement is the financial picture of the closing which shows all the money flowing into and out of the purchase and sale of real estate. The purchase-and-sale agreement, or escrow instructions, is/are the written agreement between the buyer and seller which shows the purchase price of the home as well as the “who-pays-what” information relating to closing costs.

The escrow officer is responsible for preparing the HUD-1 and closing the transaction. It is also the responsibility of the escrow officer to see that all charges on the HUD-1 are substantiated in writing and to see that all deposits and disbursements are made in accordance with the HUD-1. The preliminary title commitment reflects any existing mortgages or judgment liens that must be satisfied or paid off at time of closing and should be shown on the HUD-1.

This entry was posted in Escrow Information, First Time Home Buyer. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

*